British Prime Minister Boris Johnson has announced that he will be taking a “Rooseveltian” approach in order to turn Britain’s fortunes around.
Following the most severe economic contraction in a generation, and an unprecedented downturn in consumer activity, the Prime Minister stepped up his ambition to turn Britain’s flagging economy around with the promise of massive public spending projects in the days ahead.
Channelling the late US President Franklin D. Roosevelt, who famously launched his New Deal programme following the Great Depression in the 1930s, Johnson said the era of austerity was over and it was time to invest. And the PM has promised a massive public spending initiative with more cash for education, infrastructure projects and emergency tax measures, with further announcements to be made in the coming days.
With the UK’s debt already at record levels, the new stimulus plan takes the Prime Minister on a new path as he abandons fiscal prudence, and turns on the spending taps.
The Prime Minister also promised that Britain would encourage more companies to invest in capital including investing in people and skills training.
The economic shock of the pandemic has already led to a staggering 20.4% plunge in GDP for April, a record amount while the Bank of England recently announced further liquidity measures.