Budget 2020: New chancellor Rishi Sunak is facing a daunting challenge

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Budget 2020: New chancellor Rishi Sunak is facing a daunting challenge
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Analysis from BethRigby: In the golden afterglow of that thumping election win, Boris Johnson and his team sketched out an ambition to match the majority

"We are facing a significant short-term shock," says one senior government figure.

With events moving at a dizzying pace the government has at least done some of the groundwork on how to deal with severe disruption for a very different event - a no-deal Brexit. They could also scale up employment allowance thresholds beyond smaller businesses to give more firms a relief on paying national insurance contributions for their employees.The government could even suspend business rates or national insurance payments immediately to help ease the burden on business.

The government has already said eligible employees can claim sick pay from the first day they are off work - it used to be a four-day wait - and is now looking at ways to extend this support to ensure people access support through the benefits system.Some planned announcements will be pushed back to later in the year as the chancellor concentrates his firepower on dealing with the Coronavirus economic shockThe chancellor has already said the NHS will get all the funding it needs.

He also needs to keep options in his locker for the medium term in order to flex the economy once the initial economic shock has fed through and he's trying to get back on track.

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