Boris Johnson will promise that workers who bore brunt of austerity WON’T have pay to revamp economy after coronavirus as he vows to usher in ‘decade of investment’
- PM will unveil ‘decade of investment’ in an infrastructure spending spree
- Expected to stand in contract to 2008 bank bailouts which saw workers suffer
- Rishi Sunak will expect shareholders and other investors to take the strain
Boris Johnson is to promise those hit hardest by austerity that they will not have to shoulder the cost of reviving the economy after coronavirus, it has been reported.
In a major announcement on Tuesday, the Prime Minister will set out plans for a ‘decade of investment’ by bringing forward infrastructure spending and deregulating parts of the planning system.
As concerns mount over the impact of coronavirus on the economy, Mr Johnson will look to stand his message in contrast to the Labour government in 2008, which saw ‘too big to fail’ banks bailed out while workers suffered redundancies and pay cuts.
Rishi Sunak, the Chancellor, will make an address the following week to flesh out more details of an economic recovery package, but is not expected to side with companies looking for bailouts.
Boris Johnson is to promise those hit hardest by austerity that they will not have to shoulder the cost of reviving the economy after coronavirus
He warned British companies looking for rescue that there would be an ‘exceptionally high bar’, and the Government would not take stakes in return for part-control of firms, according to The Times.
Richard Branson’s Virgin Airways, regional carrier Loganair and Jaguar Land-Rover have recently asked the Treasury for support.
Mr Sunak has also indicated that he will not cut VAT or other taxes, saying that getting the economy moving again was more a question of psychology than incomes.
‘This is not my money,’ Mr Sunak told Bloomberg Television yesterday. ‘It’s not government’s money. This is taxpayers’ money. I shouldn’t be sitting here trying to pick winners.’
It two addresses, one by Mr Johnson and another by Chanellor Rishi Sunak, the Government will set out plans for a ‘decade of investment’ and while standing in contrast to the 2008 bailouts of large companies and banks
‘There are very tragic projections for what might happen to employment, there’s enormous dislocation in the labor market,’ he said.
‘My priority absolutely is to try and protect and preserve as many of those jobs as possible.’
It was also indicated that he would expect shareholders and other investors to take the strain.
It comes after a trio of former chancellors, Philip Hammond, George Osborne and Alistair Darling, urged their successor to cut taxes – suggesting there would be little economic ‘logic’ to hiking taxes at this stage despite soaring government borrowing and debt.
Mr Sunak has also indicated that he will not cut VAT or other taxes, saying that getting the economy moving again was more a question of psychology than incomes. Pictured: The PM and Chancellor yesterday tried out social distancing measures at a restaurant ahead of reopening on July 4
Mr Sunak’s address next week will focus on a drive to reskill those made unemployed to prepare for an economy reshaped by the virus and move to meet the government’s net zero carbon goals.
He told the cabinet this week that he wanted to use the economic response to the pandemic to address the social injustice it had caused.
‘Young people and BAME people are most likely to be hit hardest by the cri-sis, so opening up the economy safely is a matter of social justice,’ he told his colleagues.
Mr Sunak also told colleagues that his immediate priority was getting consumer spending back on track.