The end of austerity has been heralded many times by leading Tories over the last few years but never actually arrived. Behind the populist declarations nothing has been done to reverse the deep and damaging cuts of the last decade. Government departments were asked to cut budgets by five per cent at the start of this year. The living standards of the working class remain squeezed.
However, coronavirus has forced Boris Johnson’s government to spend big. As in many other countries, the Tories have turned to state spending to try and limit the catastrophic economic falls triggered by the health crisis – £280 billion of pandemic-related spending has already been made, including £73 billion for job retention measures.
This ‘Covid Keynesianism’ runs contrary to the Tories’ usual neo-liberal instincts. There are ideologues on the right of the party who have swallowed their own lies that austerity was an economic necessity hook, line and sinker. There have been rumblings of discontent from these deficit hawks even as the health crisis rages on. They’re already looking to sharpen the axe for public spending.
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