Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Hoping to win back voters, UK's Johnson pledges economic growth

Published 05/10/2022, 07:31 AM
Updated 05/10/2022, 12:03 PM
© Reuters. A car carrying Britain's Queen Elizabeth's crown leaves the Buckingham Palace for the State Opening of Parliament at the Palace of Westminster, Britain, May 10, 2022. REUTERS/Henry Nicholls

By Elizabeth Piper and Andrew MacAskill

LONDON (Reuters) - Prime Minister Boris Johnson promised on Tuesday to revive Britain's economic growth to help those struggling with a cost-of-living crisis and to tackle regional inequalities after setting out his government's agenda for the coming months.

Punished by voters in last week's local elections over COVID lockdown-related scandals and soaring inflation, Johnson said his ruling Conservative Party would "deliver on the promises we made" in the 2019 election.

The plans, contained in the Queen's Speech, were read out at the ceremonial State Opening of Parliament for the first time in 59 years not by Queen Elizabeth but by her eldest son and heir, Prince Charles, due to the monarch's mobility problems.

But there was little to comfort the millions of Britons struggling with higher fuel and food costs, with the government reiterating that it would "repair the public finances" rather than channel additional money to cushion the blow.

Johnson told parliament his government would do all it could to help those struggling with rising prices, but "however great our compassion and ingenuity, we cannot simply spend our way out of this problem, we need to grow out of this problem".

"We will get through the after-shocks of COVID ... by urgently pressing on with our mission to create the high-wage, high-skilled jobs that will drive economic growth across the United Kingdom," he said.

Earlier, in a ceremony full of pomp and pageantry, Charles - who wore the uniform of an admiral of the fleet - read the speech in front of robed lords and lawmakers, who had walked from the House of Commons to the upper chamber, the House of Lords, led by Johnson and opposition Labour leader Keir Starmer.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Charles was drafted in after Buckingham Palace said on Monday that the 96-year-old queen was experiencing "episodic mobility problems" and had reluctantly decided she could not attend.

'OUT OF TOUCH'

The Queen's Speech set out 38 bills, including measures to revitalise Britain's high streets, crack down on illicit finance and make the City, London's financial district, more attractive to global investors after the country left the European Union.

Conservative lawmakers welcomed the proposed laws. David Jones, a former minister, told Reuters it showed "an ambitious government agenda, seizing the opportunities of Brexit".

But Starmer said the government's response to the cost-of-living crisis was "pathetic".

"We have a government whose time has passed, a cabinet out of ideas and out of energy, led by a prime minister entirely out of touch," the Labour leader told parliament.

Johnson's government is keen to turn the page on scandals after months of reports of COVID-19 lockdown-busting gatherings at the prime minister's Downing Street office and residence.

After Johnson and his finance minister, Rishi Sunak, were both handed fines for one such gathering, Starmer stepped up the pressure by pledging to resign if police found he had also broken lockdown rules. Downing Street is still awaiting the results of a police investigation into other gatherings.

The Queen's Speech provided no clues on how the government might help people struggling to pay their bills, though Johnson later told parliament there would be more to say on the matter "in the days to come".

The Bank of England said last week Britain risks a double-whammy of a recession and inflation above 10%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Johnson's spokesman said the government had already put in 22 billion pounds to address immediate pressures and that focusing on boosting economic growth offered a more sustainable solution. "It's an important point for the public to understand that our capacity to inject money is finite," he said.

Johnson was punished in last week's local elections, when voters in Conservative-dominated southern England abandoned his party over the lockdown scandals and the cost of living.

This prompted some lawmakers to urge a return to a more traditional Conservative agenda of tax cuts and preventing housing from encroaching on rural areas.

With his critics falling short of the numbers needed within the Conservative Party to try to oust him, Johnson hopes that by refocusing on an agenda he believes won him a large majority in the 2019 election he can reboot his premiership.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.