Johnson hints at economic rescue plan

BORIS Johnson indicated that the UK Government would set out a plan to rescue the economy from the coronavirus crisis before the summer, and hinted that borrowing could increase further to pay for it.

Mr Johnson said he wanted to keep taxes as low as possible and did not plan to cut spending on public services to fill the hole in the nation’s finances.

The Office for Budget Responsibility has already suggested that borrowing could hit £298.4 billion this year as a result of the coronavirus crisis, and Chancellor Rishi Sunak has hinted at tax increases to “right the ship”.

The Prime Minister suggested the Chancellor would be setting out details of the plan before the Commons rises on July 21.

“We will be bringing a full post-corona economic recovery package to you and to everybody else in Parliament,” Mr Johnson told the Commons Liaison

Committee. He highlighted “the potential this country has to borrow at good rates and to invest in infrastructure other things”.

He said he wanted to keep taxes “as low as we amongst conceivably can consistent with the desire to invest in our fantastic public services”.

Mr Johnson committed to maintaining the pension triple-lock, which guarantees an annual rise of at least 2.5%. Mr Johnson told Treasury Select Committee chairman Mel Stride: “We are going to meet all our manifesto commitments unless I specifically tell you otherwise.”

The manifesto also promised not to raise the rates of income tax, National Insurance or VAT.

Asked whether those promises would also be kept, Mr Johnson said he would not make “fiscal commitments” in the committee, but “you know where my instincts lie”.

The Prime Minister indicated support for the self-employed during the coronavirus crisis would continue to be reviewed.

Self-employed people who take their income in the form of a dividend from their own company have missed out on support, the Prime Minister was told.

“We will look at that,” the Prime Minister said as he defended the “pretty awesome” package of support already announced.

Picture: Andrew Parsons/10 Downing Street/crown Copyright Prime Minister Boris Johnson appearing before the House of Commons Liaison Committee, via video conference at 10 Downing Street.