Coronavirus: Autumn Budget to be scrapped this year

The Chancellor Rishi Sunak has postponed his November Budget until next year amid the financial turmoil created by the pandemic, but today will announce how a replacement for the furlough scheme will form part of a new economic rescue package.

Rishi Sunak is expected to announce a wage subsidy scheme for people only able to work part-time, along with an extension to four different lending schemes. These should help keep credit flowing to businesses hit by the fallout from the virus, while companies could be given more time to pay VAT and other tax bills.

Typically, the government outlines the state of the country's finances in the Budget and, crucially, proposes tax changes.

But any such decisions will now be put on hold until next year. Instead, the government will reveal how much each department is allowed to spend.

The Treasury said in a statement: "As we heard this week, now is not the right time to outline long-term plans - people want to see us focused on the here and now.

"So, we are confirming today that there will be no Budget this autumn."