Chancellor Rishi Sunak's first budget for UK might be challenging amid coronavirus dread

Amid the unprecedented outbreak of deadly coronavirus, Britain's Chancellor Rishi Sunak has been warned that his best-laid budget which is expected to be revealed on March 11, might be ruined by the recent economic fallout. According to international media reports, the global health crisis since last week has scared the investors and the stock markets hit a low with London's FTSE suffering its biggest slump since the crash in 2008. Meanwhile, the traders are reportedly also prepared for another bruising week on world's blue-chip exchanges with Tokyo and Australia who reported early losses on March 2. 

Therefore, amid the downturns in the economy, Britain's Office for Budget Responsibility is expected to offer a more gloomy economic forecast and reportedly leave Sunak with less fiscal room. The uncertainty created by the fatal virus will also cripple British Chancellor's ability to turn the country's expenditure and pay for the 'levelling up' agenda in the North set by UK Prime Minister Boris Johnson because the funds will be kept back as security for any infection-induced shocks. Moreover, even though the country has confirmed 36 cases of COVID-19 but in the worst-case scenario, UK will be locked down which according to a consultancy firm could cost £10billion. 

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According to reports, Sunak was already racing to thrash out Britain's spending plans after being into the Treasury following the resignation of his predecessor, Sajid Javid. However, now he may have to let go of the proposals if  Britain's Office for Budget Responsibility revised its forecast which a source of international media outlet has suggested that it is poised to do. This reportedly is also the forecast by former Treasury minister David Gauke who has predicted that economic watchdog would recalibrate its forecast. He further added that it would 'not make the task os the new chancellor any easier'. 

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Coronavirus in Britain

Meanwhile, the British officials have reported 13 new cases, bringing the total number of confirmed cases of infection to 36. According to international media reports, among the new cases, twelve people were from England and one in Scotland. The Scottish government reportedly said that the patient, who is a Tayside resident, was under treatment in isolation at a hospital. 

The British health authorities said that the three of the new coronavirus cases in England are linked to a man from Surrey, who was the first to have contracted the deadly disease within the UK. The health authorities further reported that another eight patient had recently travelled back from affected countries, six from Italy and two from Iran. Furthermore, another patient, who is a resident of Essex, had no 'relevant travel' and it is unclear how the patient contracted the virus. 

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(With agency inputs)