Boosterism: Boris’s new buzzword for growth

BORIS Johnson has ordered the Treasury to embrace a new philosophy of ‘Boosterism’ as it prepares for an emergency Budget this autumn.

Senior Tories said the new Prime Minister had made it clear he wants ‘rocket boosters’ placed under the economy in the run-up to Brexit

This will see a huge investment in infrastructure and an end to the tight austerity spending rules that dominated the last decade.

Senior City sources say that Mr Johnson’s economic credo combines a Blairite enthusiasm for infrastructure spending, coupled with a Thatcherite belief in the power of tax cuts to stimulate the economy. One said: ‘He was asked to explain his economic philosophy and said, in a word: Boosterism.’

The new mantra is set to get its first outing in an emergency Budget pencilled in for the first week of October – less than a month before Britain is due to leave the EU.

A Government source last night said: ‘He believes in the power of infrastructure to boost economic growth. He saw it during his time as London Mayor and he wants to take that effect nationwide.’

Mr Johnson has already announced plans for a new generation of intercity rail routes in the North of England.

He is also said to be considering proposals from Chancellor Sajid Javid for a £100billion fund to help bridge the North/South divide.

Mr Johnson has also commissioned work on plans to raise the starting threshold for paying National Insurance to £12,500, at a cost of £11billion a year.

And in a major shift of emphasis, he has also authorised Mr Javid to tear up Philip Hammond’s tight spending rules which were designed to finally eradicate the huge budget deficit left behind by the last Labour government.

The new approach was welcomed by Tory MPs.

Robert Halfon, chairman of the education committee, said: ‘We have to relax the spending rules in order to boost funding for infrastructure, affordable housing and so on because our infrastructure is crumbling.’

Mr Johnson has already irritated the former chancellor by pledging to spend the £26billion ‘fiscal headroom’ that Mr Hammond set aside to cope with the economic fallout of a possible No Deal Brexit.

A source close to Mr Hammond pointed out the headroom was simply additional borrowing the Government could take out without breaching its spending rules. ‘It’s not free money,’ they said.

Mr Johnson has yet to explain how he will fund a massive increase in spending if the economy takes a downturn – leading some to fear it may be little more than wishful thinking.

The Institute for Fiscal Studies has described Mr Johnson’s long list of costly spending pledges as ‘extraordinary’.

‘Have to relax the spending rules’