Boris Johnson’s Conservative government jumped to the political left on Wednesday, outlining big new spending plans.
Coming off the back of a December 2019 election victory that saw the Conservatives secure a sizable House of Commons majority, Johnson has political flexibility. And this budget reflects Johnson’s desire to consolidate his new hold over former Labour Party heartlands in Wales and the north of England.
Still, it’s a far cry from what one might expect from a Tory government. Evincing as much, the far-left leader of the opposition Labour Party, Jeremy Corbyn, seemed rather happy with what Johnson’s treasury minister presented.
Chancellor of the Exchequer Rishi Sunak certainly broke open the vaults.
Adding to previous commitments to boost government spending by $23 billion next year, Sunak pledged an additional $39 billion in outlays. Partly motivated by the coronavirus pandemic, the new funds include $6.4 billion for England’s National Health Service and $15.4 billion to help businesses deal with any economic ramifications. And, if you think these sums seem relatively small by U.S. standards, remember that the British economy is one-fifth the size of America’s. Even then, Sunak’s sums add up quickly. What the chancellor presented will mean the government borrows far more than previously projected, adding up to $128 billion in new spending by 2024.
Coronavirus concerns aside, not everyone in the Conservative Party is happy with this budget.
Sunak’s immediate predecessor, Sajid Javid, is likely among them. Javid resigned from his role last month, protesting Johnson’s spending splurge agenda and his effort to bring the chancellor’s office under his direct control. The respected self-made millionaire feared that Johnson would drag his party into the weeds of left-wing statism.
Regardless, it’s clear that Johnson’s will has won out here. Sunak is ultimately just a figurehead for the most powerful prime minister since Tony Blair left office in 2007. The question for Conservative backbenchers in Parliament, then, is where to draw the line because, unchecked, Johnson will turn his party into a big-state behemoth.
