It is Budget week in the UK.

Chancellor Rishi Sunak will outline on Wednesday how the government plans to spend its way out of the pandemic and then pay back the debt.

The government has announced it plans to spend another $7 billion to help high street shops, pubs, restaurants, gyms and hair salons recover from the pandemic.

It is offering one-off grants of up to $25,000 to tide them over until they can re-open.

Speaking to the BBC on Sunday Sunak said "Given the scale of the shock that we've experienced, this isn't a problem that we're going to be able to fix overnight, it's going to take a long time."

It is expected the Budget will extend furlough and business rate holidays until June. It will also provide guarantees to lenders to help boost availability of mortgages for first time buyers who only have a 5 percent deposit, up to the property value of $835,000.

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It is also likely to extend the $27-a-week increase to people living on the Universal Credit government assistance scheme for another three months.

England, Scotland, Northern Ireland and Wales have been locked down since the start of the year and won't fully open up until summer at the earliest. The governments of the four devolved nations have outlined different timetables for unlocking society and business, but they have all taken a similar cautious approach.

The pandemic has caused the biggest economic crash in the UK for more than 300 years.

There's pressure on the government to get the response right. But within the Conservative Party there is also growing concern about the level of debt from COVID-19 related spending and income support.

Sunak added: "Of course, over time we want to make sure we have strong public finances and that's what I want to be clear and level with people about."

Sam Harrison from Sam's Riverside restaurant in London's Hammersmith says many businesses are worried about how they will pay their rent with no income.

His brasserie opened four months before the pandemic started. Indoor dining won't be allowed in England until May 17 at the earliest.

"It's nice to have a date to work towards but that's three months away," Harrison said. "A lot of restaurants might be able to open in May, but will they survive? 

"I'm not sure, because I think the financial implications haven't really hit yet. I personally don't see how a tenant should be expected to pay full rent for a period we are not allowed to trade."

The chancellor has indicated the government wants to reduce the biggest peacetime deficit in British history by increasing taxes on high income earners and corporations.

Sunak is concerned the Treasury has borrowed money while interest rates are at an historic low: Just a one percentage point increase would cost the government an extra $34 billion a year to service its debt.

Around the world governments are spending huge amounts to prevent economic catastrophe.

While UK Prime Minister Boris Johnson insists there won't be a return to economic austerity under the Conservatives, there are clear signs the government wants to reduce spending.

For many people barely able to survive during this pandemic, less government support means that when the country is on the other side of this crisis, life may be just as difficult as it always has been.