The government is preparing possible measures to support the economy, business and the national health service as the outbreak of coronavirus continues to spread.

So far there have been 40 confirmed cases of the virus in the UK and the country could see a “significant expansion”.

New chancellor Rishi Sunak could have less money to spend in his Budget next week, which he has already had to re-write amid increasing concerns about the virus.

He was one of the cabinet ministers who attended an emergency Cobra meeting yesterday as the government discussed how it plans to tackle the disease.

Sunak said: “We are well prepared for this global threat and, as the wider economic picture becomes clearer, we stand ready to announce further support where needed.”

The chancellor’s department is expected to provide a further update on 11 March, when he delivers the Budget.

The Bank of England has said it is working with international partners and the finance ministry to ensure all “necessary steps” are taken to offset the economic hit from coronavirus.

Prime minister Boris Johnson is today expected to publish the government’s “battle plan” to tackle the spread of coronavirus.

He will hold a news conference alongside England’s chief medical officer the government’s chief scientific adviser.

Coronavirus has been described as the “greatest threat” to the global economy since the financial crisis, according to the OECD.

It has warned that the disease could halve global growth. The world economy is expected to grow just 2.9 per cent this year, the lowest since 2009.

The OECD said growth could plunge to as low as 1.5 per cent in a “worst-case scenario”.

However, markets did pick up again yesterday.