London Daily

Focus on the big picture.
Saturday, May 31, 2025

Boris Johnson says UK ‘not necessarily’ heading for recession

Boris Johnson says UK ‘not necessarily’ heading for recession

PM sounds upbeat note on economy amid some disquiet among Tory MPs over £15bn cost of living package

Boris Johnson has said the UK is “not necessarily” heading for a recession after his chancellor announced a £15bn package to help people deal with rising energy bills and inflation.

Despite experts warning of trouble ahead for the economy and the government bringing in emergency measures to help out struggling households, the prime minister sounded an upbeat note about Britain’s financial prospects in an interview with Bloomberg TV.

“There are ways forward for the UK that are incredibly exciting,” he said. “If we make sure that we have a proactive approach to talent from abroad – we want to control immigration but allow the talent that we need to come in – we fix our energy supply issues, we fix the issues in the UK labour market.

“One of the incredible things about the economy right now is that unemployment is at its lowest level since I was two years old.”

He acknowledged there would be a “difficult period” ahead but said he was confident energy prices would start coming down.

Asked if the UK was heading for a recession, he answered: “Not necessarily at all.”

Johnson’s economic optimism has been wrong in the past when he gave an interview last year saying inflation fears were “unfounded”. It has since hit 9% and there are worries it could be in double digits by the end of the year.


Rishi Sunak, the chancellor, launched a package of measures on Thursday designed to tackle soaring fuel bills amid the cost of living crisis, but the measures have proved controversial with Conservatives MPs who would rather have seen tax cuts.

Speaking in a round of broadcast interviews on Friday, Sunak said he remained a “fiscal conservative”. He also did not rule out further emergency relief next year.

The package of relief was more ambitious than predicted but Sunak was quick to insist he had not changed his politics.

“First and foremost, I’m a fiscal conservative; I believe it’s incredibly important that I manage the country’s finances responsibly,” he said on Friday morning. “That means, after suffering the shock we did, to get our borrowing and debt levels back on a sustainable trajectory.”

Asked if he would be prepared to introduce a further emergency package in future, with fresh borrowing and taxes, he said: “People can judge me by how I’ve acted over the last couple of years.

“I’ve always been prepared to respond to the situation on the ground, what’s happening to the economy, what families are experiencing and making sure we’ve got policies in place to support them through that.

“In terms of ‘Is it one-off, what’s happening next year?’, I’d go back to what I said earlier. I do want people to be reassured and confident that we will get through this. We will be able to combat and reduce inflation, we have the tools at our disposal and after time it will come down.”

Commenting on the fact that every household across the UK would receive a £400 grant to help cope with the rapidly rising energy costs, including wealthy individuals such as himself, the chancellor said he would be donating his to charity and encouraged others who did not need it to do the same.

He told Sky News: “I am sure, like me, you can also give that money to charity if you don’t need it.”

He said second homes would account for only 1-2% of payments, adding that he had not wanted to use council tax to give the money to households because of the risk that it penalised families in larger homes who were cash poor.

Sunak denied the shadow chancellor Rachel Reeves’ suggestion that he had implemented a Labour policy, telling BBC Radio 4’s Today programme: “I don’t think that’s fair.”

Labour proposed a windfall tax on energy companies five months ago.

He also denied the package was brought forward to generate positive headlines after Sue Gray’s report exposed a culture of “bacchanalian” parties in Downing Street.

Despite a turbulent few weeks, where he has been fined for breaching Covid rules and his family’s finances have come under scrutiny, Sunak said he was not planning to resign.

He told the BBC: “No. I am fully committed to helping get the country through what are some challenging months ahead and build a brighter future for the people that I’m very privileged to represent.

“And, as you saw yesterday, I have the same energy and verve I’ve always had for this job and I’ll keep at it.”

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×