Chancellor Rishi Sunak says economy will ‘get worse before it gets better’

Subscribe to the Evening Standard on YouTube:    / @thelondonstandard   Rishi Sunak has warned the UK economy will “get worse before it gets better” given the latest lockdown. The Chancellor also cautioned the “road ahead will be tough” for the UK in its recovery from the Covid-19 pandemic, as he updated MPs in the House of Commons. He added he will “bear in mind” Tory calls to extend business rate relief and provide further support for the hospitality sector at the Budget in March. Addressing MPs, Mr Sunak said: “Even with the significant economic support we’ve provided, over 800,000 people have lost their job since February. “And while the new national restrictions are necessary to control the spread of the virus, they will have a further significant economic impact. “We should expect the economy to get worse before it gets better.” He defended the Government’s “comprehensive economic plan”, noting the fiscal stimulus amounts to more than £280 billion. MPs heard 1.2 million employers have furloughed almost 10 million employees while almost three million people have benefited from self-employment grants. He added: “Sadly, we have not and will not be able to save every job and every business. “But I am confident that our economic plan is supporting the finances of millions of people and businesses.” Mr Sunak went on: “While the vaccine provides hope, the economy is going to get worse before it gets better. “Many people are losing their jobs, businesses are struggling, our public finances have been badly damaged and will need repair. “The road ahead will be tough.