Budget 2020: Martin Lewis on why we're about to see 'magic money dropped from the sky'

Chancellor Rishi Sunak has just delivered a very different Budget from what we're used to, according to money expert Martin Lewis.

Reacting to the measures announced to combat coronavirus as well as the string of other spending commitments, the financial expert was shocked at the way the Budget was conducted as well as what it contained.

"This was a staggering Budget, we normally wait to see a rabbit pulled from the hat at the end - but here was we got was a procession of gerbil, after gerbil, after gerbil coming out of the hat,” Martin told BBC 5Live.

“It was an action Budget rather than an explanation Budget like we haven’t seen."

The magic money tree has been found, and this Budget showed how the chancellor will use it (ITV)

And one of the key changes was the plan to spend, spend, spend.

“The big change that was expected - a huge increase in infrastructure investment, an increase in government borrowing, an increase in money coming out," Martin told LBC listeners.

Contrasting the nature of this announcement with what the Conservative party has said about Labour plans to spend in the past, the MoneySavingExpert.com founder pointed out it seems fine to increase spending if you have the right background.

"It seems because Rishi Sunak comes from the City and wears a suit he is allowed a magic money tree, and he has one," Martin said.

"I’m not saying that’s a bad thing - look, we are in need of radical economic stimulus to get us through the likely recession on the back of coronavirus in the short term."

And the way that money is coming is also new.

"The £3,000 grants to businesses - that’s helicopter money - magic money being dropped from the sky.

"Pure economic stimulus - it’s not quantitative easing where they pumped it into the banks, it’s helicopter money given directly into the economy to try and stimulate spending.

"It’s the type of thing we’ve not seen before."

But that doesn't make it wrong, with Martin pointing out the economy will be hit hard as coronavirus keeps people inside and not out and about spending money.

"This is emergency CPR on the economy that they are attempting to try and keep everything running," he said.