Rishi Sunak urged to 'boost it like Biden' with £190billion Covid recovery plan


Rishi Sunak is being urged to “boost it like Biden” by quadrupling planned crisis spending to £190 billion to get the economy back on track.

The Institute for Public Policy Research (IPPR) said the UK needed to spend four times what the Chancellor has committed so far to restore jobs, investment and services.

The think tank said Mr Sunak must match the ambition of US President Joe Biden’s new administration or the UK economy risks falling into a “stagnation trap” with about half the rate of economic recovery.

Researchers found that the economic boost so far announced by Mr Sunak for the fiscal year 2021/22 is worth about 2% of the value of the entire UK economy prior to the pandemic.

However, a recovery plan worth £190 billion – equivalent to around 8.6% of the value of the economy – would deliver a faster recovery and halve the number of job losses.



The Chancellor was urged to match the ambition of new US President Joe Biden

This would be similar to the scale of the 1.9 trillion dollar stimulus package planned by the Biden administration, which is equivalent to 8.9% of the value of the US economy.

The report said the UK stimulus should be focused on supporting businesses, workers and households hardest hit by the pandemic, restoring public services and helping the growth of sustainable industries and jobs.

Carsten Jung, the IPPR’s senior economist and lead author of the report, urged the Chancellor to use next month’s Budget to provide “bold support” for the economy.

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“All in all, the risk of doing too little far outweighs the risk of doing too much,” he said, “Joe Biden has understood this.

Rishi Sunak should follow his lead.”

George Dibb, head of IPPR’s Centre for Economic Justice, said: “We estimate that an ambition similar to that of the US would be needed to get our own economy back on track.

“Otherwise we will face years of unnecessary economic pain, with fewer jobs, less investment and a slower recovery for everyone.

“It’s time for the UK to boost it like Biden.”





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