
Austerity may be back – whether Boris Johnson likes it or not
It just keeps on getting worse. Like the death toll from Covid-19 itself, forecasts for the economy in the wake of the crisis keep on creeping upwards. Today, the Office for Budget Responsibility (OBR) forecasts that UK GDP could contract by 35 per cent by June if the lockdown continues until then, before ‘bouncing back quickly’. Unemployment could rise, it says, by two million, with the unemployment rate climbing to 10 per cent. That is quite a shock given that on the eve of this crisis we were celebrating the highest employment ever and the lowest unemployment in 45 years. The 35 per cent contraction is making all the headlines
