Former Chancellor Sajid Javid on why government must not go back to austerity

23 June 2020, 10:10

By Adrian Sherling

Sajid Javid has told LBC that the government must not go back to austerity measures to recoup spending from the coronavirus pandemic.

Boris Johnson is set to announce how he plans to get the service industry back up and running following lockdown.

Mr Javid spoke to Nick Ferrari to reveal his ideas for how to get the economy going - and he insisted the government must not go down the route of spending cuts again.

He said: "I believe that the one thing that makes the economy grow hasn't changed because of this crisis - that is a free enterprise, free trading, low tax, sensibly-regulated economy.

"Those are the principles that underlie the report. We talk about the importance of temporary tax cuts - VAT, employers' National Insurance, infrastructure investment.

"When it comes to paying for all of that, now would be the wrong time, in the middle of this economic crisis, to have austerity and cut-backs in spending."

Nick Ferrari spoke to Sajid Javid about how to get the economy back up and running
Nick Ferrari spoke to Sajid Javid about how to get the economy back up and running. Picture: LBC

Nick asked him where exactly the money will be coming from. Mr Javid told him: "The government is having to borrow record amounts from the markets and also with the help of the Bank of England.

"That is the right one at a time like this.

"When you have record low interest rates, that is sustainable for now, not for the very long term. It's right to borrow now to support the economy.

"But what the objective should be now is to generate growth and jobs, because eventually that's what will pay for the public finances to get back into balance."

More Nick Ferrari

See more More Nick Ferrari

'Where do they find the time?!': Nick Ferrari slates mob attacking 'sexist' paint ad

'Where do they find the time?!': Nick Ferrari slates mob attacking 'sexist' paint ad

Nick Ferrari sold on caller's 'three one-off taxes' plan to raise cost-of-living funds

Nick Ferrari sold on caller's 'three one-off taxes' plan to raise cost-of-living funds

Nick Ferrari mocks caller who blames Brexit for water crisis

Nick Ferrari mocks caller who blames Brexit for water crisis

Nick Ferrari gobsmacked after caller says he has had seven bikes stolen.

Nick Ferrari gobsmacked at how caller has had seven bikes stolen

LBC's Reporter Charlotte Lynch took a dip off the Cornish Coast

Nick Ferrari's 'swimming in shark infested waters' reporter challenge

Jacob Rees-Mogg said civil servants had been offered a course on witchcraft

Courses on Check Yo Privilege and witchcraft for civil servants are a waste of time, says JRM

The Defence Secretary was speaking to Nick Ferrari

Ben Wallace accuses Rishi Suank of trying to block extra cash for defence spending

Ben Wallace is backing Liz Truss

'Feisty' Truss is my choice for PM, says Ben Wallace as he reveals endorsement

Tory party co-chair looks ahead to LBC leadership hustings with Nick Ferrari

Tory party co-chairman looks ahead to LBC leadership hustings with Nick Ferrari

'Totally invented tosh': Nadine Dorries dismisses claims she'd give up her constituency seat for Boris

'Totally invented tosh': Nadine Dorries dismisses claims she'd give up seat for Boris

Sunak is 'opposed to transparency' over police league table plans, says minister

Sunak is 'opposed to transparency' over police league table plans, says minister

Exclusive
'Do you want him evicted?': Mick Lynch defends RMT deputy living in council flat on £78k

'Do you want him evicted?': Mick Lynch defends RMT deputy living in council flat on £78k

Exclusive
Social workers 'showed no interest' in tragic Lily-Mai case, grandfather tells LBC

Social workers showed 'no interest' in tragic Lily-Mai case, grandfather tells LBC

A furious Nick Ferrari summed up the issue

Nick Ferrari slams 'sanctimonious' BBC over Princess Diana interview

Nick Ferrari mocks Prince Harry after UN speech

Nick Ferrari mocks Prince Harry after UN speech - 'Buy the bloke a Peroni!'

Mordant 'spent months' preparing for Tory leadership campaign

Mordaunt 'left other ministers to pick up the pieces as she planned leadership bid'