Former Bank of England boss Lord King says UK is well prepared for the economic impact of the coronavirus pandemic after 10 years of austerity
The UK is well prepared for the economic impact of the pandemic after ten years of austerity, said Lord (Mervyn) King.
The 72-year-old governor of the Bank of England during the financial crisis said Britain was in a good position to take on large debts.
Well prepared: Lord King was Governor of the Bank of England during the financial crisis
Chancellor Rishi Sunak announced £ 330 billion in state supported loans and promised around £ 40 billion in grants, tax breaks and wage subsidies.
Lord King said, “One of the benefits of prudence over the past decade is that it is much easier to absorb an increase in the national debt.
“I don’t think we should worry today about the extent to which the national debt will increase, as long as we can get the economy going as soon as possible. “
He added that “trial and error” would be needed to break the lockdown and said the government should be “honest about the difficulties” in opening up the UK to business.