British Cabinet ministers demand end to lockdown; government watchdog issues apocalyptic warning UK economy faces biggest slump in 300 years

Whitehall sources told the Mail that the Chancellor fears some members of the public have ‘over-interpreted’ the lockdown advice and believe only designated key workers should be working.

He is said to be pushing for ministers to ‘strengthen the message’ that people should be trying to work unless their sector has been directly shut down or they can not practise social distancing.

And he warned colleagues the Government risks causing permanent damage to the economy if the lockdown goes on too long. 

In a sign of tensions, one Cabinet minister told The Daily Telegraph: ‘We should begin to release the things that can be released, so primary schools and non-essential shops could reopen. If you can go into Sainsbury’s to buy non-essential items while observing social distancing rules, why not other shops?’

Suggesting that pensioners will have to sacrifice their freedom to let the country get back to normal, the minister added: ‘It looks like elderly and vulnerable people are going to be self-isolating for six months rather than three.’

The OBR said unemployment could hit 3.4 million – up from 1.3 million – leaving around one in 10 of the working population without a job, while the economy may shrink by 35 per cent between April and June.

In its first estimate of the economic toll taken by the crisis, the watchdog said public sector net borrowing is expected to increase by £218billion this year, compared with March forecasts, hitting £273 billion, or 14 per cent of GDP.

‘That would be the largest single-year deficit since the Second World War,’ the independent forecaster said.

‘The sharp rise in borrowing this year largely reflects the impact of economic disruption on receipts (with smaller effects from policy measures like the business rates holidays) and policy measures that add to public spending (with smaller effects from higher unemployment).’

It based the outlook on a scenario where the lockdown lasts three months followed by a partial lifting for three months, but said, in this case, that there would be a sharp bounceback in the economy, with gross domestic product likely to jump 25 per cent in the third quarter and a further 20 per cent in the final three months of 2020.

A separate survey by the British Chambers of Commerce today suggested around one in three British businesses has furloughed between 75 per cent and 100 per cent of its workforce due to the coronavirus crisis.

© Provided by Daily Mail The OBR revealed grim estimates for what could happen to the economy if lockdown goes on for three months, and is then partially lifted for another three months. An eye-watering 35 per cent crash in GDP during the second quarter would be partially offset by a rebound in the rest of the year due to pent-up demand and government bailouts (left). Meanwhile, the spike in unemployment would take much longer to unwind (right)

Mr Sunak told the daily Downing Street press conference last night: ‘These are tough times and there will be more to come. As I have said before, we cannot protect every business and every household.

‘But we came into this crisis with a fundamentally sound economy, powered by the hard work and ingenuity of the British people and British businesses.

‘So while those economic impacts are significant, the OBR also expects them to be temporary, with a bounceback in growth.’

© Provided by Daily Mail The IMF today predicted that the hit to the UK this year will be dwarfed by the problems in Italy, Spain, France and GermanySir Keir Starmer has added his voice to calls for the Government to publish its exit strategy from the lockdown this week.

In a letter to Dominic Raab, who is deputising for Boris Johnson, Sir Keir said Labour would support the Government if, as is expected, it keeps the current measures in place.

But he said: ‘The question for Thursday therefore is no longer about whether the lockdown should be extended, but about what the Government’s position is on how and when it can be eased in due course and on what criteria that decision will be taken.’

Elsewhere, Health Secretary Matt Hancock said all care home residents and social care staff with coronavirus symptoms will be tested as capacity increases.

He also vowed to provide tests for all potential care home residents before they are discharged from hospital.

It follows intense criticism of the Government’s treatment of the sector, with claims it has been forgotten as the disease spread.

Figures released by the Office for National Statistics yesterday showed that 16,387 people died in England and Wales in the week to April 3 – an increase of 5,246 deaths compared with the previous week and 6,082 more than the five-year average.

Covid-19 was mentioned on 3,475 death certificates in the same week, including hospital, care home and community deaths.

But care home providers have warned they are seeing a higher number of cases and deaths than are officially reported, in part due to a time lag with the ONS figures.

Sir Simon Stevens, chief executive of NHS England, is reported to be the latest senior figure leading the UK’s response to the crisis to have suffered from coronavirus. The BBC said he had self-isolated for just over a week.

Stay at home to stop coronavirus spreading – here is what you can and can’t do. If you think you have the virus, don’t go to the GP or hospital, stay indoors and get advice online. Only call NHS 111 if you cannot cope with your symptoms at home; your condition gets worse; or your symptoms do not get better after seven days. In parts of Wales where 111 isn’t available, call NHS Direct on 0845 46 47. In Scotland, anyone with symptoms is advised to self-isolate for seven days. In Northern Ireland, call your GP.