Rishi Sunak will on Wednesday unveil a £4.3 billion New Deal-style package to get one million people back into work amid warnings that unemployment could continue rising until next summer. The Chancellor will promise that no one will be left "without hope or opportunity" after redundancies reached record levels. The Office for Budget Responsibility, the Treasury's watchdog, is expected to predict that unemployment, currently at 4.8 per cent, could go as high as eight per cent by the summer – after the end of the furlough scheme – before it starts to fall. The OBR is also expected to forecast that the economy will have shrunk by 10 per cent by the end of this year – the worst performance in 300 years. The Resolution Foundation think tank believes the OBR will forecast a permanent reduction of three per cent in the UK's GDP due to the economic "scarring" of coronavirus – the equivalent of £1,000 per person. Public service spending is on course to reach 60 per cent of GDP this financial year, a level not seen since the Second World War, with the cost of Covid predicted to rise to £400 billion by the end of the year. Mr Sunak's decision to find billions of pounds for jobs support in Wednesday's Spending Review will be seen as an acknowledgement that the unemployment crisis has a long way to go. The Chancellor will pledge to "create and support" hundreds of thousands of jobs through tens of billions of pounds of investment in infrastructure, including roads, houses, railways and cycle lanes. A £2.9 billion Restart scheme will help the long-term unemployed to find jobs by giving them "intensive, tailored" support to meet their individual circumstances. Another £1.4 billion will be allocated to Job Centres, helping the short-term unemployed back into work. Mr Sunak will also extend the apprenticeship hiring incentive – which pays employers £2,000 for every new apprentice they hire – to the end of March, when the new tier system of Covid restrictions will end. The jobs schemes will effectively replace the furlough scheme, which finishes on March 31. He is expected to announce a freeze on public sector pay to help claw back some of the cost of Covid support, as well as reducing foreign aid spending from 0.7 per cent of national income to 0.5 per cent.