Former Chancellors warn UK economy may never fully recover from coronavirus crisis – The Sun

BRITAIN'S economy might never recover fully from the coronavirus crisis and Britain will not enjoy a “V-shaped bounce,” three former Chancellors have warned.

Labour’s Alistair Darling, who was Chancellor during the last recession, said whether the economy recovers at all will “depend on decisions the Government takes in the next three to four weeks.”

⚠️ Read our coronavirus live blog for the latest news & updates

He added: “The decisions we take in the next few weeks are going to be critical.”

In a worrying prediction he predicted the best we can hope for is the economy mirroring an L-shape – adding: “Perhaps with the last bit curving up”.

Lord Darling predicted the economy will take much longer to recover from the coronavirus crisis than the 2008 financial crisis. The economy didn’t start growing again after that recession until 2010.

Suggesting that we might have to wait until the mid-2020s to see the economy bounce back after the coronavirus crisis, the ex-Chancellor told a webinar hosted by the Tony Blair Institute: "I’m afraid this is much, much worse because we’re not yet in control of events."

His gloomy outlook was echoed by two former Tory Chancellors, who warned that the economy will take years to recover fully.

Ken Clarke, who was Chancellor in the 1990s, told the Evening Standard: "The next two or three years will be taken up with getting the economy back on its feet.

"There won't be a V-shaped recovery. Some sectors may bounce back but it will take time and we will have an economy saddled with high debt."

"A return to normality is going to take quite a considerable length of time, not least as well because it depends what the state of the global economy is."

Give now to The Sun's NHS appeal

BRITAIN’s four million NHS staff are on the frontline in the battle against coronavirus.

But while they are helping save lives, who is there to help them?

The Sun has launched an appeal to raise £1MILLION for NHS workers. The Who Cares Wins Appeal aims to get vital support to staff in their hour of need.

We have teamed up with NHS Charities Together in their urgent Covid-19 Appeal to ensure the money gets to exactly who needs it.

The Sun is donating £50,000 and we would like YOU to help us raise a million pounds, to help THEM. No matter how little you can spare, please donate today here:

His predecessor Norman Lamont warned of mass job losses, with companies “finding they can operate with fewer people,” while some businesses will disappear completely.

He told the Evening Standard: "The economy will be changed and there will be scars."

Meanwhile, Britain’s biggest banks such as Lloyds, HSBC and Barclays were criticised for failing to help out crippled economies yesterday after it emerged that only half of coronavirus loans have been approved.

Six in ten of the loans approved so far have been from Natwest.

The majority state-owned bank has handed out about 15,000 of the 25,262 loans under the Government’s Coronavirus Business Interruption Loan Scheme.

The FSB’s Martin McTague blasted the other major banks, who he said had “found it extremely difficult to respond to the pressure they’re under”.

British Chambers of Commerce boss Adam Marshall piled further pressure on the Chancellor to allow firms to furlough staff part-time as they start to return operating.


Don't miss the latest news and figures – and essential advice for you and your family.

To receive The Sun's Coronavirus newsletter in your inbox every tea time, sign up here.
To follow us on Facebook, simply 'Like' our Coronavirus page.

Get Britain's best-selling newspaper delivered to your smartphone or tablet each day – find out more.

Source: Read Full Article