UK facing recession ‘like no other we have seen before’, warns Chancellor

Due to the unprecedented outbreak of deadly coronavirus, UK has been pushed into a severe recession which according to UK Chancellor of the Exchequer Ruishi Sunak is never seen before. According to international reports, Sunak has said that according to new figures, there will be an increase in unemployment and “the likes of which we haven’t seen”. More than 2.1 million people in Britain have filed in April to benefit claims which are highest since 1996. The British Chancellor also told the parliament that once the COVID-19 pandemic “immediate bounceback” is “not obvious”. 

This comes as the UK government has begun easing some restrictions to allow businesses to resume their operations. Till now Britain has confirmed 248,818 cases of coronavirus infections and at least 35,341 deaths while the global infection toll has surpassed 4.9 million. Even though livelihoods of millions across the world have been impacted due to nationwide lockdowns to curb the further spread of COVID-19, Sunak has also reportedly said that there would be “more hardship to come”. 

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Despite UK Prime Minister Boris Johnson’s optimism about battling the coronavirus outbreak and its impacts, the office for National Statistics reportedly noted that over 856,500 people have signed up for the Universal Credi and Jobseeker’s Allowance in April. This has made the overall claims bounce by 69 per cent in just a month. The recession is not only the worst one since 1996 but it was reportedly at the fastest rate since the comparable records had begun back in the 1970s. Moreover, according to the Institute for Employment Studies, the areas that were already in poor condition resulted in suffering the most. 

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UK economy to witness 'slower' recovery

Meanwhile, the UK’s budget forecasting office has said on May 17 that the nationwide shutdown to curb the further spread of COVID-19 disease could have cost 30 per cent of its output last month. According to reports, Robert Chote the chairman of the Office for Budget Responsibility (OBR) predicted that the lowest crash in the economy was apparently recorded in April but it shall now improve as the government has now moved on to easing some of the restrictions. 

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Image Source: AP