THE UK economy has suffered the worst fall since the 2008 crash, shrinking by 2% in the first quarter of 2020 according to official figures.
The Office for National Statistics (ONS) said activity fell by 5.8% in march, sending GDP tumbling in the first quarter.
The latest numbers show for the first time how the coronavirus pandemic and its accompanying lockdown is affecting the economy.
The figures only account up until the end of March – and with lockdown being on March 23, it seems the true scale of the damage will become visible when second quarter figures are released later in the year.
READ MORE: Predictions for Scotland's economy post-coronavirus
The new figures come as The Telegraph reported on a leaked confidential government document which states the Treasury is looking to raise taxes and freeze wages to help pay a predicted £300 billion coronavirus bill.
Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: "With the arrival of the pandemic, nearly every aspect of the economy was hit in March, dragging growth to a record monthly fall.
"Services and construction saw record declines on the month with education, car sales and restaurants all falling substantially."
He added: "The pandemic also hit trade globally, with UK imports and exports falling over the last couple of months, including a notable drop in imports from China."
However, the fall isn’t a reason to end lockdown early according to Fran Boait, executive director at Positive Money. Boait said “As GDP continues to fall policymakers will be increasingly tempted to accelerate the easing of emergency public health measures in order to get the economy growing again. There is a clear tension between this dash for growth and public health, as illustrated by the government’s eagerness to get workers back to workplaces regardless of whether it is safe.
“The evidence shows that the vast majority of the public think we should worry more about people’s health and wellbeing than GDP growth during this crisis. The Government should not pay too much attention to today’s statistics and instead put public health ahead of private wealth.”
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