Boris Johnson ‘rules out return to austerity’ to fund coronavirus bill

Boris Johnson has reportedly reassured backbench Tory MPs that there will be no public sector pay freezes or funding cuts to pay off the coronavirus bill

 

Boris Johnson has denied reports the government will be freezing public sector workers’ pay as part of a string of measures to foot the coronavirus bill. He reportedly told around 125 backbench Conservative MPs on a conference call on Friday that there would be no return to austerity to cover the £300 billion cost of the crisis. The PM promised to ‘double down’ on transport projects in the north, amid concerns his election promises to level-up the economy would be ditched as the UK heads towards a recession.

He said the government was looking at spending heavily on infrastructure as Britain exits the restrictions and believes the pandemic could be a ‘springboard for ambitions’, The Daily Telegraph reports.  He reportedly said: ‘We are going to make sure we level up right across the country and keep faith with the people who voted for us’. Asked directly whether there would be a pay freeze for NHS workers, An MP claims Mr Johnson replied: ‘Absolutely not. Anyone who suggests that can sit on it.’ Visit our live blog for the latest updates: Coronavirus news live Matt Hancock says he is fighting for ‘nurses to have a fair reward’ Play Video Loaded: 0% 0:00Progress: 0% PlayMute Current Time0:00 / Duration Time1:48 Fullscreen This – along with an increase in taxes – was one of the many measures reportedly being considered to pay off the colossal amounts the government has forked out to keep people in jobs, such as with the Coronavirus Job Retention Scheme.

A Treasury document leaked earlier this week said the UK’s deficit could reach £337 billion this year because of the pandemic, compared to the forecast £55 billion in March’s Budget. It said the assessment, dated May 5, warned that filling such a gap in the public finances through tax revenue rises would be ‘very challenging without breaking the tax lock’. The paper said measures including income tax hikes, a two-year public sector pay freeze and the end of the triple lock on pensions may be required to fund the debt.

The Treasury declined to comment on the report, which was understood to be one of many put together by different teams to discuss ideas about future policy. However, it led to widespread backlash from unions and politicians across all political stripes, with Tory MPs planning on using today’s call to pile pressure on the PM to ditch the plan. According to The Daily Telegraph, Mr Johnson told the group, the 1922 committee, that Chancellor Rishi Sunak was examining ‘innovative’ solutions to help entrepreneurs emerge from the lockdown measures and gave the impression the government was looking at ‘liberalising the tax regime rather than tightening it’.

Boris Johnson held a call with backbench MPs in which he reportedly reassured them there would be no tax hikes or public sector cuts post coronavirus (Picture: Getty)

Boris Johnson held a call with backbench MPs in which he reportedly reassured them there would be no tax hikes or public sector cuts post coronavirus (Picture: Getty) He told MPs the government would ‘look after’ those on the lowest incomes when the crisis passes. The prime minister was said to have also backed Downing Street’s communications operation – which has come under fire for mixed messaging over the easing lockdown – and said he would do more to tackle obesity – one of the key risk factors in catching coronavirus.

The government’s slow response to the pandemic has been widely criticised, with key problems including PPE shortages and a lack of testing. Though the PM did not appear to draw on that, he suggested he would examine reforming how Public Health England (PHE) is ran once lessons from his cabinet’s handling of the crisis are learnt. Speaking about his strategy and keeping the rate of infection down, he reportedly said ‘we’re going to play Whack -a-Mole across the country wherever coronavirus flares up.’ When asked by one MP when he would be able to embrace his girlfriend again, he reprtedly told him he was working on ‘a good hugging policy’. Keir Starmer accuses Boris of cover up by ditching international death comparisons Play Video Loaded: 0% 0:00Progress: 0% PlayMute Current Time0:00 / Duration Time2:38 Fullscreen Though the call was broadly optimistic, the PM was said to be ‘scathing’  about London Mayor Sadiq Khan.

It comes after the government agreed to a 1.6 billion bailout deal for Transport for London, which was on the verge of collapse before the emergency funding was made available. The body was forced to turn to No10 for help after reporting a 90% fall in income as journeys on public transport dried up during the lockdown. The terms of the deal mean TfL must now raise the congestion charge by 30%, temporarily stop free travel for children and charge over-60s to travel at peak times. Mr Khan said it was a ‘bad deal’ but that he had no choice to accept it as the alternative was for buses and tubes to stop.

 

Source:metro.co.uk/