Boris Johnson enforced a nationwide lockdown last month, ordering people to remain indoors and not travel unless absolutely necessary as Britain desperately battles back against the coronavirus pandemic. This has seen businesses close because of the disappearance of consumer footfall and consumer spending, buckling under the huge financial strain from millions of pounds of lost trade. Millions of jobs have been lost as a result, and with millions more expected, unemployment rates could rocket to record highs this year.
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Rishi Sunak has already made several spending pledges totalling hundreds of billions of pounds in a desperate attempt to limit the damage to the UK economy, workers, businesses and jobs.
But last week the Chancellor admitted the economy could shrink by as much as 35 percent between the April to June quarter as the disastrous position the UK already finds itself in becomes evident.
Britain is tumbling into a recession, but financial experts are convinced it will be worse than that experienced during the financial crisis in 2008 and possibly the deepest in more than a century.
Ben Harris-Quinney, chairman of the Bow Group think tank, warned that Britons will inevitably be exposed to the “chilling reality” from the trillions of pounds the coroanvirus crisis will cost the economy, resulting in an “unholy trinity of spending cuts, tax rises and inflation”.
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UK economy: Britons have been warned to brace for spending cuts, tax hikes and inflation (Image: GETTY)
British households could find themselves under severe pressure as the economy attempts to recover (Image: GETTY)
The ultimate cost to the UK economy of coronavirus is likely to run into the trillions. The Government cannot entirely protect the economy or taxpayers from that chilling reality
He told Express.co.uk “The ultimate cost to the UK economy of coronavirus is likely to run into the trillions.
“The Government cannot entirely protect the economy or taxpayers from that chilling reality.
“These levels of spending mean that the entirety of the Government’s economic strategy had been torn up.
“The deficit reduction strategy has been torn up and it is likely many other aspects of Government spending such as HS2 will be reviewed.
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Britons could be faced with huge tax increases to repay the huge spending to fight coronavirus (Image: GETTY)
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“The fallout will mean UK citizens are likely to see an unholy trinity of spending cuts, tax rises and inflation.”
The Bow Group chairman warned “placing the burden on taxation or inflation would be unwise for long term economic growth”.
But he said the Government may be forced down that route to plug immediate gaping holes in the UK economy.
Mr Harris-Quinney added: “The total cost of the coronavirus crisis will likely run into trillions, both in terms of government spending and overall cost to the economy.
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Chancellor Rishi Sunak has already made several significant spending pledges (Image: PA)
“It will require a complete rethink on how the country and government operates going forward.
“Placing the burden on taxation or inflation would be unwise for long term economic growth, but the government will likely attempt to use all measures at its disposal to balance the books in the short term.”
Britons, whilst praising the Government for the hundreds of billions being spent to desperately attempt to prop-up the economy and save millions of jobs, have been left wondering how this will be paid back.
But pressure group the TaxPayers’ Alliance warned hiking taxes would be “totally disastrous” for already under pressure households struggling to make ends meet.
The UK economy has been devastated by the coronavirus lockdown (Image: GETTY)
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Campaign Manager Sam Packer told this website: “The absolute last thing the country will need during or after this crisis is higher taxes.
“Taxpayers are already facing the highest tax burden in fifty years.
“It would be totally disastrous to put already strained household budgets under further strain.”
He added: “To boost the economy, we would be far better off freezing council tax and lowering personal tax rates to make sure people have more of their own money to spend.”