The Guardian's Perspective on The Guardian's Perspective on Boris Johnsons' Budget: We're All Keynesians Now | Editorial | Opinion

RThe first budget of ishi Sunaks reveals a politician who will not lose the opportunity presented by a crisis. The conservative chancellor has acted to build confidence in the economy by deploying a series of emergency spending measures to support households and businesses in the aftermath of the global coronavirus epidemic. But it also marked a new direction in the government's economic policy. Mr. Sunak took advantage of his first of three tax events this year to lay out the government's agenda and send a message that he would not hesitate to use the state. What Mr. Sunak wanted voters to hear is that this is a high-spending, high-borrowing administration, which in terms of actual spending per person, aims to reverse a decade of cuts before the next election.

This change of attitude and the talk about strengthening the safety net to deal with an emergency is a refreshing change for the better. Mr. Sunak is right to think that the public will not indulge in the state's narrowing conservative instincts. The chancellor is a welcome convert to the idea that the treasury must borrow to invest in order to raise the rate of growth of the economy. The injection of liquidity is necessary to maintain economic growth, in particular because Brexit has reduced it by 2%. What was once considered heresy is now a tenet of the Johnsonian faith. The impression, left by Mr. Sunak, is that we are all Keynesians now. AT paraphrase Margaret Thatcher, never has the road to Damascus been so congested. Ms. Thatcher sang in 1996 after four Labor defeats. There may be little satisfaction for Labor in winning the economic argument, only to see the Conservatives steal their ideas after four election losses.

However, it would be rude not to think that Mr. Sunaks an additional $ 6 billion on the NHS should be reduced simply because he raised the figure of Works manifest. The most disturbing opposition to Mr. Sunak regarding public spending may come from his own side. Many Conservatives have not changed their minds and may well consider Mr. Sunak as having lost his own. Conservative impulses are brought into play by cutting taxes, cutting regulations and talking about wealth creation, not by praising the virtues of public spending.

The Conservatives, however, are ready to give up their principles of power. This is what makes the party a formidable political force. In appearance, the budget was one for drinkers and drivers. Like most Conservatives, Mr. Sunak believes in clean technology, not hair styling. He no doubt thinks that a curator can become the first mayor of West Yorkshire, which is why he is propose one and replicate the breakthrough of the holiday in North East England in 2017. Mr Sunak might claim that the Conservatives are the real workers' party, but there is no sign that State will intervene on the labor side or redistribute wealth. He clearly refused to act as an employer of last resort for the concert economy during this crisis.

While Mr. Sunak changed the way of politics, he did little to reveal where the Conservatives were going. Voters don't know what he wants to pay money to. Under the heading of investing in excellent public services and taking it to the next level, the budget spreadsheet has about 60 billion unspecified spending in 2024. Mr. Sunak has until been to describe how he will spend this money. Higher public investments will increase the supply capacity of the economy. And higher spending will stimulate demand. However, the extent to which these and all social gains are realized depends on the combination of the projects chosen. Even before the coronavirus struck, Mr. Sunak faced a slowdown in the global economy and a Brexit that leaves the country poorer. The Bank of England has little conventional the ammunition has remained and is already lining up 100 billion emergency credit lines. It will take months before we know if the UK and the EU need to agree on a trade deal. He can strut around the shipping box, but Mr. Sunak is clearly concerned with keeping his powder dry.