New Chancellor Rishi Sunak's March 11 budget plans 'are thrown into chaos' by ...

New Chancellor Rishi Sunak's March 11 budget plans 'are thrown into chaos' by coronavirus – as global stock markets brace for another wipeout week Global crisis last week spooked investors and sent stock markets into free-fall  Traders are braced for another bruising week on world's blue-chip exchanges  The Office for Budget Responsibility is expected to revise its economic forecast  This will leave Mr Sunak with less fiscal wiggle room as funds will be kept back

By Jack Elsom For Mailonline

Published: 02:20 GMT, 2 March 2020 | Updated: 02:21 GMT, 2 March 2020

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Chancellor Rishi Sunak has been warned his best-laid budget plans may be scuppered by the economic fallout from coronavirus. 

The global health crisis last week spooked investors and pushed stock markets into free-fall, with London's FTSE suffering its biggest slump since the 2008 crash. 

Traders are braced for another bruising week on the world's blue-chip exchanges, with Tokyo and Australia reporting early losses on Monday.

Such financial downturns are expected to force the Office for Budget Responsibility (OBR) to offer a more gloomy economic forecast and leave Mr Sunak with less fiscal wiggle room.

Uncertainty created by the virus will hamstring his ability to turn on the spending taps and pay for the Prime Minister's 'levelling up' agenda in the North, as funds will have to be kept back as a buffer for any infection-induced shocks.

The cost of locking down London in a worst-case scenario could spiral to £10billion, according to one consultancy firm. 

Chancellor Rishi Sunak has been warned his best-laid budget plans will unravel because of the economic pounding dealt by coronavirus

Chancellor Rishi Sunak has been warned his best-laid budget plans will unravel because of the economic pounding dealt by coronavirus

The global health crisis last week spooked investors and pushed stock markets into free-fall, with London's FTSE suffering its biggest slump since the 2008 crash

The global health crisis last week spooked investors and pushed stock markets into free-fall, with London's FTSE suffering its biggest slump since the 2008 crash

Mr Sunak was already racing to thrash out his spending plans after being parachuted into the Treasury following the resignation of his predecessor Sajid Javid.

And he may have to water down these proposals

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