Britain announces war chest to fight coronavirus

Britain announces war chest to fight coronavirus

Britain's finance minister, Rishi Sunak, unveiled a budget with a multi-billion-pound stimulus package to help ward off the economic impact of coronavirus.

Britain's new finance minister, Rishi Sunak, has announced a spending splurge to protect the economy from the impact of coronavirus.

In his maiden budget Wednesday, he unveiled a stimulus plan of 30 billion pounds or about 40 billion dollars.

In keeping with the gloomy times, there were few of the jokes and cheers typical of a new budget.

(SOUNDBITE) (English) BRITAIN'S CHANCELLOR OF THE EXCHEQUER, RISHI SUNAK, SAYING: "Our economy is robust, our public finances are sound, our public services are well prepared.

My Right Honourable Friend, the Health Secretary, is working around the clock to protect the public's health, and I will do whatever it takes to support the economy." The UK economy unexpectedly flatlined in January even before coronavirus hit.

Earlier Wednesday, the Bank of England slashed interest rates, as Britain took a double-barrelled approach to warding off recession.

That was down half a percentage point to 0.25 percent, echoing last week's emergency cut by the U.S. Federal Reserve.

Boris Johnson, who won re-election in December, wanted to use his first budget to showcase plans to channel investment to poorer regions.

But coronavirus struck - and Sunak, in the job for just a month, had to fund new priorities.

Announcing an extra five billion pounds for the cash-strapped National Health Service and other public bodies to help counter the spread of the epidemic.... And emergency support for companies facing a cash-flow crunch -- such as deferring tax payments for firms and the self-employed.

He also relaxed sick-pay rules for workers and people on benefits as medical officials expect a jump in cases over the next few weeks.

Sunak's injection of public investment marked a turning-point for the world's fifth-largest economy, after a decade of austerity.