Home Business News Government must take ‘urgent action to save the economy’ says MP

Government must take ‘urgent action to save the economy’ says MP

by LLB Reporter
13th Apr 20 3:22 pm

Rishi Sunak has warned lockdown measures could crash GDP by up to 30% this quarter, and within the Cabinet there are divisions to ease the lockdown for economic reasons.

Sunak has warned that the UK PLC could shrink by up to 30% with millions of jobs on the line in the coming months.

Tory Brexiteer John Redwood said on Monday the government must take “urgent action” to end this lockdown to save Britain’s economy.

Ahead of the governments legal review on Thursday on social distancing, Redwood has written to all Cabinet ministers.

Redwood said the government needs to take “urgent action to save the economy” as he fears a sharp contraction in economic activity as a result of the pandemic.

The Wokingham MP suggested easing the current lockdown restrictions which will allow business to reopen and give a much-needed boost to the British economy.

Redwood said, “You need to take urgent action to save the economy.

“None of us have ever witnessed such a sharp contraction in economic activity, with an all too rapid surge in unemployment.”

If the lockdown is not lifted, then many businesses will fail. Redwood said, “It is urgent to start lifting restrictions.

“Many more people will lose their jobs if the lockdown continues.

“Many self-employed have no income from work. Many small businesses are struggling to pay their overheads with no revenue.

“There are limits to how much the state can substitute for the loss of income.

“If we go on like this, large amounts of economic capacity will be permanently lost.

“It is time to start to get the UK back to work, whilst protecting the vulnerable and reducing the risks of catching the disease for the rest of us in sensible ways.”

The Telegraph was told by Cabinet sources that Johnson must sign off on any major lockdown.

Johnson “has to take that decision. Any lockdown will have huge implications, and the PM will be responsible for it, so he’s got to be the one taking that decision.”

A senior Tory MP added, “It should absolutely be Boris. He’s the captain of the ship. It has to be someone who has the confidence of the nation.”

Downing Street has previously said the government will take scientific and medical advice from their advisors over lifting restrictions.

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