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Coronavirus: Johnson sets out 'ambitious' economic recovery plan | Coronavirus: Johnson sets out 'ambitious' economic recovery plan |
(32 minutes later) | |
Boris Johnson has said now is the time to be "ambitious" about the UK's future, as he set out a post-coronavirus recovery plan. | Boris Johnson has said now is the time to be "ambitious" about the UK's future, as he set out a post-coronavirus recovery plan. |
The PM vowed to "use this moment" to fix longstanding economic problems and promised a £5bn "new deal" to build homes and infrastructure. | The PM vowed to "use this moment" to fix longstanding economic problems and promised a £5bn "new deal" to build homes and infrastructure. |
Plans set out in the Tory election manifesto would be speeded up and "intensified," he added. | Plans set out in the Tory election manifesto would be speeded up and "intensified," he added. |
Labour and the CBI said he was not focusing enough on saving jobs. | Labour and the CBI said he was not focusing enough on saving jobs. |
Labour leader Sir Keir Starmer said there was "not much of a deal and not much that's new". | Labour leader Sir Keir Starmer said there was "not much of a deal and not much that's new". |
The BBC's economic editor, Faisal Islam, said there was "nothing really new" in the plans, but was a pledge from the Treasury to "speed up capital investment that has already been announced and tolerate higher levels of debt". | |
Chancellor Rishi Sunak later confirmed he would deliver an economic update on 8 July "setting out the next stage in our plan to secure the recovery". | |
The PM's speech came as new figures showed the UK economy shrank faster than at any time since 1979 between January and March. | |
In a wide-ranging speech in Dudley, in the West Midlands, Mr Johnson vowed to "build, build, build" to soften the economic impact of coronavirus. | In a wide-ranging speech in Dudley, in the West Midlands, Mr Johnson vowed to "build, build, build" to soften the economic impact of coronavirus. |
He said the government wanted to continue with its plans to "level up" - one of its main slogans of last December's election - as "too many parts" of the country had been "left behind, neglected, unloved". | He said the government wanted to continue with its plans to "level up" - one of its main slogans of last December's election - as "too many parts" of the country had been "left behind, neglected, unloved". |
Infrastructure projects in England would be "accelerated" and there would be investment in new academy schools, green buses and new broadband, the PM added. | Infrastructure projects in England would be "accelerated" and there would be investment in new academy schools, green buses and new broadband, the PM added. |
Projects in the £5bn investment plan include: | Projects in the £5bn investment plan include: |
Other projects announced in the government's Spring Budget, which will now be accelerated, include: | |
'Economic impact' | |
Mr Johnson acknowledged jobs might be lost because of the economic hit from the pandemic, but said a new "opportunity guarantee" would ensure every young person had the chance of an apprenticeship or placement. | |
Asked whether the plans went far enough for those who end up unemployed, the PM said the strategy was for "jobs, jobs, jobs". | |
But he could not put a figure on how many roles would be created through his plan, adding: "We don't yet know what the full economic impact is going to be... [but] we will do everything we can to get this economy moving." | |
The prime minister loves a big, historical comparison. | The prime minister loves a big, historical comparison. |
He is a keen student of Winston Churchill - and has even written a book about him. | He is a keen student of Winston Churchill - and has even written a book about him. |
Over the last few days, the comparisons the government has sought to draw have been with former American President Franklin Delano Roosevelt and his "New Deal." | Over the last few days, the comparisons the government has sought to draw have been with former American President Franklin Delano Roosevelt and his "New Deal." |
As my colleagues at Reality Check point out, the plan set out today is a tiddler compared to what FDR did, and a fair chunk of it is re-announcing what we already knew the government was planning. | As my colleagues at Reality Check point out, the plan set out today is a tiddler compared to what FDR did, and a fair chunk of it is re-announcing what we already knew the government was planning. |
But Boris Johnson is attempting to set out in a broader context the government's vision - and his pride in saying he wants to spend a lot to revitalise the economy and haul it out of the doldrums. | But Boris Johnson is attempting to set out in a broader context the government's vision - and his pride in saying he wants to spend a lot to revitalise the economy and haul it out of the doldrums. |
Under what Mr Johnson dubbed "project speed," planning laws would also be streamlined to encourage building. | |
Changes, planned for September, include: | Changes, planned for September, include: |
Pubs, libraries, village shops will be protected from the changes as they were are "essential to the lifeblood of communities," the government said. | Pubs, libraries, village shops will be protected from the changes as they were are "essential to the lifeblood of communities," the government said. |
Mr Johnson acknowledged the planning changes might meet resistance in traditional Tory-voting areas, but said: "Sometimes you have got to get on with things." | Mr Johnson acknowledged the planning changes might meet resistance in traditional Tory-voting areas, but said: "Sometimes you have got to get on with things." |
The prime minister gave a hint of what the government's post-lockdown strategy might look like today, but there was nothing really new here. | The prime minister gave a hint of what the government's post-lockdown strategy might look like today, but there was nothing really new here. |
The Treasury will speed up capital investment that has already been announced and tolerate higher levels of debt. | The Treasury will speed up capital investment that has already been announced and tolerate higher levels of debt. |
But they believe their existing plans for boosting infrastructure spending are already a significant fillip to the economy, and they want to see what happens as it re-opens. | But they believe their existing plans for boosting infrastructure spending are already a significant fillip to the economy, and they want to see what happens as it re-opens. |
One set of figures released today shows household savings increased during lockdown, but will people have the confidence to spend? | One set of figures released today shows household savings increased during lockdown, but will people have the confidence to spend? |
The scale of government support for businesses and employees in recent months probably does justify New Deal-style rhetoric. Extending support at that level may yet be required, and is far from ruled out. | The scale of government support for businesses and employees in recent months probably does justify New Deal-style rhetoric. Extending support at that level may yet be required, and is far from ruled out. |
But for now, they are holding fire as they assess the permanent scars to the UK economy. | But for now, they are holding fire as they assess the permanent scars to the UK economy. |
The PM said the UK "cannot continue to be prisoners of this crisis" and the government was "preparing now, slowly, cautiously to come out of hibernation". | |
"This country needs to be ready for what may be coming," he added, in preparation for an "economic aftershock". | |
"We must use this moment now… to plan our response and to fix the problems that were most brutally illuminated in that Covid lightning flash." | "We must use this moment now… to plan our response and to fix the problems that were most brutally illuminated in that Covid lightning flash." |
But Mr Johnson said his response would not be a return to the austerity that followed the financial crisis. | |
He attempted to calm Tory fears that he had shifted to the left, saying: "I am not a communist". | He attempted to calm Tory fears that he had shifted to the left, saying: "I am not a communist". |
Instead, he claimed he had been inspired by US president Franklin D Roosevelt, who led America out of the Great Depression with his New Deal in the 1930s. | Instead, he claimed he had been inspired by US president Franklin D Roosevelt, who led America out of the Great Depression with his New Deal in the 1930s. |
In the aftermath of the Wall Street Crash of 1929, President Roosevelt launched one of the largest, most expensive US government programmes which included building schools, hospitals and dams. | In the aftermath of the Wall Street Crash of 1929, President Roosevelt launched one of the largest, most expensive US government programmes which included building schools, hospitals and dams. |
'Not enough' | 'Not enough' |
Labour Leader Sir Keir Starmer said: "We're facing an economic crisis, the biggest we've seen in a generation and the recovery needs to match that. What's been announced amounts to less than £100 per person. | Labour Leader Sir Keir Starmer said: "We're facing an economic crisis, the biggest we've seen in a generation and the recovery needs to match that. What's been announced amounts to less than £100 per person. |
"And it's the re-announcement of many manifesto pledges and commitments, so it's not enough." | "And it's the re-announcement of many manifesto pledges and commitments, so it's not enough." |
The Labour leader added: "We're not going to argue against a recovery plan, but the focus has to be on jobs." | The Labour leader added: "We're not going to argue against a recovery plan, but the focus has to be on jobs." |
The CBI said the prime minister had set out the "first steps on the path to recovery". | The CBI said the prime minister had set out the "first steps on the path to recovery". |
But director general Carolyn Fairbairn added: "The focus on rescuing viable firms cannot slip while the UK looks to recovery, or earlier efforts could be wasted." | But director general Carolyn Fairbairn added: "The focus on rescuing viable firms cannot slip while the UK looks to recovery, or earlier efforts could be wasted." |