Chancellor defends record on furlough and says government has protected most vulnerable through Covid

  • Video report by ITV News Business and Economics Editor Joel Hills

Chancellor Rishi Sunak has told ITV News the government has "protected those on the lowest incomes" through the Covid crisis but refused to comment on whether the most vulnerable would be protected in future budgets.

Speaking as latest GDP figures showed the economy rebounded out of recession between July and September before slowing once more, the chancellor said:"The research and analysis shows that those on the lowest incomes have seen the most support and the most protections of those incomes through this government during this crisis.

Watch the full interview with Chancellor Rishi Sunak

"That's a statement of fact and an expression of our values that we want to look after the most vulnerable in society and that's what we will always do."

Pressed on whether future budgets would continue to protect the most vulnerable in society, Mr Sunak said: "I can't comment on future budgets but I think people can judge us on our track record thus far which shows that those on the lowest incomes have seen the most support and protections."

Asked about the apparent indecision around the extension of the furlough scheme, the chancellor defended having initially announced it would end - to then renew it shortly afterwards.

"I think it's absolutely appropriate that as the health situation evolves, our economic interventions should also adapt," he said.

Mr Sunak's winter economy plan signalled the end of the furlough scheme before it was renewed as stricter Covid measures came into place.

The scheme has since been renewed again until March.

Speaking to ITV News' Economics Editor Joel Hills, the chancellor said: "We're dealing with a health crisis - the likes of which we haven't ever seen before.

"We need to make sure that our economic interventions support and align with the health interventions and that's exactly what we did.

"So I think being agile and responsive and flexible in the face of changing circumstances is a good thing and it's not something I will ever shy away from." Figures from the Office for National Statistics released on Thursday showed record growth between July and September as the country's spring Covid lockdown eased.

But recovery took a hit in September - as stricter restrictions loomed.

Month-on-month growth slowed to 1.1% in September as the government’s Eat Out To Help Out hospitality-boosting scheme ended - with GDP still 8.2% below levels seen in February before the Covid crisis struck.

The looming end of the transition period poses another threat to Britain's businesses, with uncertainty around how Brexit will impact future trading relationships with the EU.

Pressed on whether he could reassure businesses there would be a deal, the chancellor told ITV News: "The teams are hard at work at that, it's perfectly possible that we can have a deal".

Quizzed on the bleak warning from the Bank of England that one in three businesses are not ready for the end of transition, the chancellor said further delay would not help.

"What we've had is years of uncertainty and businesses need certainty and they have that certainty and they're also supported by hundreds of millions of pounds of investment in helping them get ready."

Mr Sunak refused the possibility of extending the transition period.

"I think what people need is certainty and clarity," he said.

The chancellor blamed "those perennial extensions we had in the past" for "hampering preparedness" of businesses.