CABINET ministers last night revealed they are drawing up a fresh multi-billion pound bailout for businesses ravaged by the coronavirus crisis.
Boris Johnson admitted for the first time that the epidemic will inflict “a severe blow to the economy” as many firms are forced to shut up shop while it rages.
The PM would also not deny that Chancellor Rishi Sunak will now have to rip up his landmark first Budget which he only delivered six days ago.
It promised £7billion of support for struggling firms and the self-employed, which economists now think may only be a drop in the ocean.
Instead, Boris promised a fresh look “across our whole tax and spend system” to ensure “we give business space in which they come back from this”.
The PM also insisted the new financial crisis would be temporary and not on the same scale as the disastrous Credit Crunch of 2008.
Boris argued: “If we get it right, work together, we can make sure it’s short term.
“There is absolutely no reason worldwide economies can’t come roaring back”.
Mr Sunak will tomorrow announce the major bail out package designed to keep thousands of businesses afloat.
Treasury sources last night said it will be “very significant”, and the Chancellor will be at the PM’s side at his new daily press conference.
Health Secretary Matt Hancock also told night told the Commons: “I am discussing with the Chancellor a further package of support because it is absolutely clear that the measures that we are having to take will have a very significant impact on business”.
The PM also took part in a conference call with the six other leaders of the G7 group of the world’s richest nations yesterday afternoon in a bid to plot a unified global response.
The leaders, including US President Donald Trump, pledged to “do whatever it takes” on monetary policy and state spending to return the world to economic growth.
Boris also held talks with Chancellor Rishi Sunak and new Bank of England governor Andrew Bailey to decide what more could be done.
And he set up a new Cabinet committee, to be chaired by Mr Sunak, to coordinate efforts to help bail out struggling firms and the self-employed.
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The hospitality sector were last night left in shock by the dramatic new social restrictions.
UK Hospitality CEO Kate Nicholls said: “This is catastrophic for businesses and jobs.
“The government has effectively shut the hospitality industry without any support, and this announcement will lead to thousands of businesses closing their doors for good, and
hundreds of thousands of job losses.”
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