The Prime Minister promised that his government “would not return to the austerity of ten years ago” before a speech next week.
In an interview with Mail on Sunday, Boris Johnson presented his plans for an economic recovery after the foreclosure.
They will include a new task force, chaired by the chancellor, which he says will aim to speed up the construction of hospitals, schools and roads.
The economy fell 20.4% in April – the largest monthly decline on record.
Amid persistent criticism of how his government has handled the pandemic, the Prime Minister said that the ministers would “double their upgrade” – infrastructure spending in order to “rebuild our path to health.”
“We will make sure that we have plans to help people whose old jobs are no longer there to get the opportunities they need.”
“We are absolutely not going back to the austerity of ten years ago,” he told the newspaper.
The new infrastructure delivery working group will review major projects underway and remove “bottlenecks at each stage of development and delivery.”
No. 10 hopes a construction boom will boost jobs and improve connectivity in cities and towns.
The composition of the task force, chaired by Chancellor Rishi Sunak, will be determined in due course, said a spokesman for Downing Street.
The number 10 confirmation of an infrastructure campaign follows a call by former Conservative Prime Minister Sir John Major to avoid tax hikes while the country tries to get back on its feet.
Sir John said the tax hikes in the current situation would be a “mistake” and urged the government to borrow to take advantage of the low interest rates currently available.
And former Chancellor Sajid Javid had already warned of a return to austerity, calling for low corporate taxes to help the UK recover.
Boris Johnson has come under heavy criticism for the way his government has handled the coronavirus epidemic – and questions are expected to continue as ministers seek to ease the foreclosure in England.
But obviously keen to try to get his broader political agenda back on track, the Prime Minister returns to the phrase that was so frequently used in last year’s election campaign – “race to the top”.
This means spending on infrastructure – schools, transport and NHS.
So how will these big projects get paid?
With billions already spent to support the economy during this pandemic, bad weather borrowing seems to be on the cards.
Number of workers on UK payrolls plunged more than 600,000 between March and May, official figures say, economists warn that full employment effect will not be felt until the end salary support programs.
Almost nine million workers who are unable to do their jobs due to the pandemic have had their wages paid by the government as part of their leave package.
But businesses will have to start paying for the program from August, and it will close entirely in October.
In a major easing of Britain’s foreclosure, the Prime Minister announced on Tuesday that pubs, restaurants and hotels are among the places that will be allowed to reopen from July 4.
But the announcement was criticized by some companies – such as indoor gymnasiums – who were not on the list.
The Observer said that an additional 1 million people could become unemployed if no government support was announced by August, adding to the 2.8 million already unemployed.
New analysis from the House of Commons library, commissioned by the Labor Party, suggests that unemployment levels may reach levels not seen since the 1980s – surpassing the peak of 3.3 million reached in 1984 under Margaret Thatcher, according to the newspaper.
Ghost Secretary Ed Miliband said, “The scale of the economic emergency we face is enormous. But the government is removing the carpet from companies underemploying a million people by demanding that they start paying the cost of permission when they don’t even know when they can reopen.
“The government’s approach will jeopardize jobs, businesses and livelihoods, which will impose costs on all of us. Distressed sectors should be given special help, and leave and economic support must go hand in hand with public health measures designed to keep us safe. ”
A Downing Street spokesperson said, “The response to the coronavirus showed that it didn’t take years to get essential projects started – the Nightingale hospitals and the ventilator challenge were up and running in a matter of weeks.
“As we recover from the pandemic, we must apply the same urgency to major projects in the foundations of this country and carry them out, to really improve opportunities across the UK.”
“There is now no excuse for the delays. Infrastructure has the power to rebuild and repair our country – and we will do it better, faster and more strategically than before. “
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