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Many businesses are “simply throwing in the towel” because of worries over government support during the next few months, Labour has said.
Shadow chancellor Anneliese Dodds argued Boris Johnson’s Covid recovery “roadmap” had not brought “certainty”.
She told BBC Radio 4’s Today programme that furlough, the business rates holiday and the VAT cut had to be extended in next week’s Budget.
Chancellor Rishi Sunak said he would do “everything” possible to protect jobs.
Official figures show the UK economy shrank by 9.9% last year – more than twice the biggest previously recorded annual fall.
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