Boris Johnson says austerity 'certainly not part' of government's economic response to coronavirus

Boris Johnson has dismissed fears that the government will make public spending cuts in the wake of the coronavirus pandemic, suggesting instead that it will seek to stimulate growth.

Speaking at a daily news briefing in Downing Street the prime minister said austerity would “not be part of our approach”.

It comes amid concerns that sharply falling economic economic output caused by lockdown measures will mean the government has less money to spend.

Some figures around Mr Johnson’s party have suggested public spending cuts could be a suitable response.

But asked on Thursday about his approach, the prime minister said: “You know what my instincts are: I think the economy will bounce back strongly, I think this government will want to encourage that bounceback in all kinds of ways.

“I’ve never particularly liked the term that you just used to describe government economic policy and it’ll certainly not be part of our approach. Austerity, by the way, was the term you just used.”

Britain, along with most countries hit by Covid-19, is expected to enter a deep recession in the first half of this year – though there is uncertainty about how long it will last.

Governments tend to increase their spending during recessions in order to support employment and economic activity.

Social support measures introduced by the government such as its wage subsidy scheme and business loans programme have also put pressure on government spending.

After the financial crisis in 2008 the government introduced austerity measures, making cuts to public services and social security. Some economists believe the way in which austerity was imposed prolonged the economic damage.

Source: UK Politics - www.independent.co.uk