Chancellor Rishi Sunak passes first test with flying colours and delivers budget to beat coronavirus bug
WHEN Rishi Sunak replaced Sajid Javid as Chancellor, he was immediately facing the biggest challenge of his accomplished career: Delivering his first budget in just 27 days.
Little did he know at that time we would be facing a potentially unprecedented global health crisis sparked by the coronavirus pandemic.
The budget today had to fulfil two purposes – deal with the immediate threat to our economy and way of life caused by COVID-19, while delivering on the Tories’ election manifesto to level up the country.
It was a tough ask and with such limited time under such pressure so much could have gone wrong.
But Sunak passed with flying colours, delivering a crisis budget that was at times deadly serious, at times poetic and at times hilarious.
It was not a good budget, as Simon Cowell might say, but a great one, with a very assured performance from a relative newcomer too.
Critics might say that’s easy when you’re throwing around £600 billion. Yup, a decade of austerity is well and truly over.
His £30 billion three point plan to deal with the coronavirus epidemic made it clear the situation is being taken extremely seriously by this government, regardless of what the fake news on social media suggests – and when it comes to the NHS, money is going to be no object. That’s what we want and need to hear right now.
Sunak committed a billion pounds for the financial security of vulnerable members of the public during the emergency as he tries to rebrand the Tories as the “real party for the workers”.
And he took the “significant step” of providing statutory sick pay paid for by the government for small businesses for those off work for up to 14 days.
No one was left out of his plans to cut business rates to zero to deal with the crisis – with everything from music venues to hotels covered. And the small businesses most in need will receive an extra £3,000 cash injection.
This was a package to save our economy in the short term. It’s hard to argue with the chancellor when he says it’s one of the most comprehensive fiscal stimulus packages anywhere in the world.
But what about the psychological impact of financial stress on individuals? I’m delighted he has also asked the HMRC to delay payments over time for those struggling in the wake of this very unexpected crisis.
As for the Tories plans to level up, there was a spending spree too.
The continued freeze on fuel duty – a campaign led by The Sun for the past decade that I have taken up on my talkRADIO show too – was a welcome dose of common sense that will help individuals, businesses and public services.
A freeze on alcohol duty should be celebrated too, as should the abolishment of the hated tampon tax.
But much more significant was Sunak’s vow to “unleash the power of business”, with support for new bold ideas – a Dominic Cummings’ passion project – given special funding.
And the infrastructure spend is incredibly significant too with Sunak’s vow: “If the country needs it we will build it.”
From 50 million potholes being filled to transforming transport systems north of Newcastle, critics will find it hard to say Sunak didn’t do enough. Although that’s predictably how Labour immediately responded.
But this will go down as the coronavirus budget.
And perhaps the most important factor is that I believed Mr Sunak when he said the government will do whatever it takes to protect our country and our most vulnerable people during what is going to be a very rough few weeks and months ahead.