Chancellor Rishi Sunak warns UK economy will shrink by 11% this year

The chancellor, Rishi Sunak, has spelled out the devastation inflicted on the economy by coronavirus.

Announcing his spending review in the Commons, he warned: “The economic emergency has only just begun.”

He published statistics showing that the nation’s finances have been damaged in a way not seen for decades, if not centuries. And he predicted a steep rise in unemployment by next year.

In the first sign of the tough remedies likely in the future, he did away with the commitment to spend 0.7% of GDP on overseas aid.