Boris & Rishi Focusing on Jobs Package

June 03, 2020

As the world is getting back to business where it can and the furlough measures recede, the jobs that are lost will become apparent. UK youth unemployment will likely be in the region of 30% if the hospitality sector stays closed. Which is why at PMQs when Boris was asked by Bolsover MP Mark Fletcher about a green jobs package he replied saying there were going to be multiple packages. Guido understands there will be a set-piece jobs speech from Boris before the fiscal statement expected in July…

There has been some speculation about increased sugar taxes to fund a Covid-inspired anti-obesity drive. Which would be an about turn by Boris on sin taxes, from a man who famously likes to have his cake. With government borrowing almost interest free, the case for infrastructure spending is more arguable, taxpayers funding the retraining of workers laid off when the furlough scheme ends, to work on the huge extra infrastructure spending planned makes sense. We have had a big state response to the pandemic – wags joking that we are having a taste of communism, with everyone paid by the state and queues for food, are only half joking – Guido suspects we are going to see a big state, post-pandemic government agenda. Boris fancies himself as a builder; HS2, “Boris Island”, bridges across the Thames and the Irish Sea.

What makes no sense is Cummings’ obsession with government funding for British-based technology firms. This will prove a waste of taxpayers’ money which should be left to the venture capital’s risk takers and tech entrepreneurs. The same entrepreneurs incidentally that Rishi whacked in the last budget. The Government would do better by not picking winners, and instead ushering in startup investment from the private sector. They could start by lifting the pension fee cap for investments, injecting more money into start ups as well as bringing bigger potential returns to pensioners…