UK households have tucked away about £140bn over the past year and £100bn is sitting on corporate balance sheets, UK chancellor Rishi Sunak told the Wall Street Journal's CEO Council Summit on 4 May.

Sunak also said wealthy families will escape a post-pandemic tax raid earmarked to boost the economy, while praising the UK's already "very progressive tax system".

He added that confidence among both households and businesses had rebounded to pre-crisis levels, with activity is picking up quickly.

"As we look forward to reopening over the coming weeks and months, there are signs to be cautiously optimistic and we can see that in the data. I'm hopeful that will be sustained through the rest of the year," he said.

Paul Surguy, head of investment management at international wealth manager Kingswood, commented: "With no holidays, no restaurants, limited car journeys and of course the concern of how long Covid-19 would impact the economy, it is no surprise that many who remained fully employed were able to save more over the past year.

"The question will be: is it spent, or is it invested for another rainy day? Undoubtably, we will see an increase in spending from the pent up demand we are hearing so much of. This will in turn lead to inflation which gradually erodes the value of any cash that is sat in the bank.

" Over the long term, this reduces the buying power of cash sat in the bank, as the prices of goods and services increase whilst the value of the cash remains static with interest rates remaining at, or close to zero."