Javid tells Johnson to run the economy ‘hot’

A TORY lockdown rift emerged yesterday when Sajid Javid urged ministers to reopen the economy “as far and as quick” as possible.

The former chancellor put himself at odds with Boris Johnson by raising doubts over the Government’s cautious approach.

He claimed ministers should be “running the economy hot” to ensure a rapid recovery.

His remarks followed a warning from the Bank of England earlier this week that the shutdown could cut economic growth by 14 per cent this year – the worst collapse on record.

Mr Javid quit the Treasury in February after refusing to accept that No 10 should appoint his advisers and is the most senior Conservative to raise doubts about the coronavirus lockdown.

He said: “We’re going to have to coexist with this virus for many months, if not potentially years. But we’ve got to find a way forward and that does mean you’re relaxing, as much as you can. Running the economy hot you could say, in a way that you are trying to take into account, not just the sort of necessity to control the virus, but also the wider impact on society.”

Mr Javid was sceptical about a V-shaped economic bounceback.

He said: “I think a V-shaped recovery will be challenging. And I know the Bank of England has said it’s possible.

“It has made a whole set of assumptions around relaxing the lockdown and ending it completely in three months. And it says itself that it’s at best uncertain.

“I do think it’s just like the virus itself, let’s hope for the best but let’s plan for the worst, and that means you’re taking whatever action you think is necessary and possible now to make sure we do get the fastest recovery possible.”

Mr Javid also told Sky News that “we shouldn’t rule out an option that focuses on protecting the most vulnerable but gives more freedom to others” such as younger people who can help rebuild the economy.