Rishi Sunak has said the City of London should brace for "Big Bang 2.0" following the UK's departure from the European Union, suggesting a repeat of the sweeping deregulation of financial services under Margaret Thatcher.
In a speech to MPs, Sunak said that new national restrictions to control the spread of coronavirus are necessary but will have a "further significant economic impact".
Britain's economy looks likely to tip back into recession - shrinking in the final quarter of 2020 and the first quarter of 2021 - following a record 25% fall in output in the first two months of lockdown previous year. The cable has recently been pressured amid the coronavirus (COVID-19) woes.
Additionally, local authorities will be distributing discretionary funds of half a billion pounds to support local businesses in their areas.
Fiscal stimulus measures provided so far amount to more than £280bn.
Sunak has previously announced emergency help for the economy worth 280 billion pounds, including a massive job protection scheme that runs until the end of April.
He took issue with official statistics that show British economic output has suffered a bigger hit during the pandemic than nearly any comparable countries.
"It is very clear that the way we calculate that output flatters other countries and disadvantages us when it comes to making those comparison", he said.