Coronavirus: Boris Johnson promises pandemic will not lead to return of austerity
The IndependentSign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. The announcement sets the scene for massive additional borrowing to fund lavish building projects, at a time when the cost of the outbreak has already driven Britain’s state debt above 100 per cent of GDP. And former prime minister Sir John Major says Mr Johnson should borrow to pay for a “crusade for a decade” to improve the living standards of the key workers who helped Britain through the pandemic, end rough sleeping and do away with the need for food banks. Johnson also pledged to establish a Northern Powerhouse rail link between Leeds and Manchester and invest in a Midlands rail hub, while also improving and reopening train lines elsewhere in the country, spending almost £30bn on roads, backing green energy projects, opening new schools and building 300,000 new homes a year by the mid-2020s. The International Monetary Fund last week forecast a 10.2 per cent decline in UK GDP this year – one of the steepest falls among developed economies – with only a partial recovery in 2021.