UK triples coronavirus response fund for NHS and public services – The Guardian, Theguardian.com

“We depend on them, which is why we are doing everything we can to provide our NHS, local authorities and others, with the resources and tools they need to tackle the virus. “From the start, I ‘ve been clear our vital public services will get whatever they need to protect this country and its people from coronavirus. ” The Treasury said the £ 5bn funding package included £ 6.6bn of support to health services, which would be specifically targeted towards freeing up hospital beds and delivering “urgent affected including acquiring ventilators, diagnostic tests and protective equipment for NHS staff”. The remainder includes: £ 3.5 bn to keep rail services operating; £ 1.6bn for local authorities; £ 1.9bn to the devolved administrations in Scotland, Wales and Northern Ireland and £ m to cover extra measures such as food packages for vulnerable people. The new funds will be raised by drawing on a combination of the government existing reserves, money earmarked for spending that cannot now take place and additional government borrowing, the Treasury said. it declined to reveal how much of the £ 18 .5bn would come from each source of funds, or what form the government borrowing might take

, saying only that it would outline further details in the next budget.

Sign up to the daily Business Today by email or follow Guardian Business on Twitter at @BusinessDesk (The provision of the extra resources for public services comes as fears grow about how Sunak will pay for the huge requirement for Covid – funding , with the chancellor reported to have told colleagues that the UK’s economic output could fall by as much as % between April and June,% as cabinet colleagues have called for restrictions to be eased. The Times reported on Monday that ministers said Sunak discussed the possibility of a “ % to % ”fall in the second quarter of this year, while City analysts have forecast an average contraction of around (% in the economy caused by the coronavirus lockdown, although some economists have predicted the drop could be as severe as 36%. The Treasury did not comment on the report. (Read More)