Unemployment in the UK is expected to peak at 2.6 million the chancellor has revealed.

Norfolk and Waveney will continue to pay the price for the coronavirus for years to come with the economy expected to shrink by 11.3pc in 2020 alone.

As a result the UK will face the worst recession for more than 300 years.

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The chancellor told MPs that the Office for Budget Responsibility (OBR) did not expect the economy to return to its pre-crisis levels until the end of 2022 and the damage was likely to last.

The “long-term scarring” would mean that in 2025 the economy will be around 3pc smaller than expected in March.

Mr Sunak said: “Our health emergency is not yet over. And our economic emergency has only just begun.

“So our immediate priority is to protect people’s lives and livelihoods.”

The OBR forecasts show a recovery is expected over the coming years, with growth of 5.5pc forecast next year as coronavirus restrictions are eased, then 6.6pc in 2022, 2.3pc in 2023, 1.7pc in 2024 and 1.85 in 2025.

The government will borrow an eye-watering £394 billion this year, equivalent to 19pc of GDP – the highest ever recorded in peacetime.

“This situation is clearly unsustainable over the medium term,” Mr Sunak admitted.