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

Israel's ambassador lamented how Churchill is viewed by some in Britain

'It's sad Brits aren't proud of Churchill': Israeli ambassador says UK history important

Nick Ferrari speaks to Sir Lloyd Dorfman

'Sitting at home in your bedroom won't advance your career': Travelex founder rails at WFH

The Foreign Secretary was speaking to LBC's Nick Ferrari

'What's the difference between a Russian invasion and incursion?' Nick grills minister

Julian Richer appeared on Nick Ferrari at Breakfast on Wednesday.

Business leader and former Tory donor 'couldn't believe you could buy access to ministers'

Cycling laws are due to change, years after the Charlie Alliston case

Killer cyclists face prosecution under historic new law welcomed by campaigners

Cyclist doesn't use cycle lanes 'because they're stupid'

Nick Ferrari attacks cyclist who doesn't use cycle lanes 'because they're stupid'

The Transport Secretary was speaking to LBC's Nick Ferrari

Covid travel rules 'kind of back to good old days', Transport Secretary says

Katharine Birbalsingh insisted strict uniform codes are needed

Social mobility tsar: Pupils will bring knives to school if you don't enforce uniform code

The distraught caller was speaking to Nick Ferrari

'I can't afford my heating': Caller bursts into tears as cost of living crisis laid bare

Business Secretary Kwasi Kwarteng spoke to LBC this morning

'Less than half my office is back at work': Business Sec Kwasi Kwarteng reveals in WFH row

Rachel Reeves spoke to Nick Ferrari this morning

Shadow Chancellor: Tax North Sea gas firms to help struggling families

Lord Stuart Rose, chairman of Asda, has welcomed the return to the office.

'Hallelujah': New Asda Chairman Lord Rose hails WFH end and says 'forget about Covid'

Nick Ferrari hit out at the former Tory MP

Nick Ferrari: It is shameful that Christian Wakeford defected to Labour with no by-election

Greater Manchester Mayor Andy Burnham said Gary Neville "brings life to politics".

'He brings life to politics': Andy Burnham welcomes Gary Neville to the Labour team

Andy Burnham has said he cannot see how the Prime Minister can survive the partygate scandal.

Isn’t it time to go Boris? Andy Burnham tells LBC ‘I don’t see how the PM can survive’

Call Mayor of Greater Manchester Andy Burnham | Watch LIVE from 9am

Call Mayor of Greater Manchester Andy Burnham | Watch Again