While the Chancellor’s recovery measures look drastic, they are “middle of the pack” when compared to others in the world.
Given the Coronavirus uncertainties, whatever he announces could be even more provisional than most schemes of most Chancellors.
The big picture is that Johnson is dashing for growth. We devoutly hope it works but the precedents aren’t promising.
Post-Covid, the environment is likely to be egalitarian and interventionist. For libertarian, small state Eurosceptics, this must come as a disappointment.
Unfortunately, the crisis we face will lead to decisions having to be made which will be more difficult than those taken in 2010.
After a decade of forward guidance, credit easing and quantitative easing, it was clear even before the Covid-19 crisis that monetary policy had run out of road.
Given the working title ‘Project Birch’ within Government, the project is reported to be considering investmenting billions of pounds in companies.
If, that is, interest rates carry on at rock bottom rates. But we have to take a chance on growing our way out of this crisis.
As a member of his first Cabinet, I was tested in Northern Ireland – as elsewhere the new government reduced the defict and reformed public services.
When used against an indiscriminate shock like the Coronavirus, it can become a huge weight on the private sector.
If it proves a temporary blowout rather than permanent, accumulated debt levels being modestly higher looks manageable.
How prepared are we for strict social distancing for the forseeable future, compulsory masks, closed leisure facilities – and a semi-functioning economy?
With no fiscal leeway for stimulus spending, a bold supply-side programme will be crucial for the UK.
The CSJ’s proposals would bring practices in line with the private sector – and establish a new contract of fairness.
Aggressive and intimidating enforcement plagued our system long before Covid: now is not the time to cross our fingers and hope that this might change.