UK preparing ‘full armory of economic policy’ for no-deal Brexit, says Finance Minister

Finance minister Sajid Javid pledged yesterday to prepare Britain for a no-deal Brexit, saying the “full armory of economic policy” would be on hand if needed. Speaking at his party’s annual conference in Manchester a month before Britain is due to leave the EU, Javid said he had asked his department to prepare a comprehensive economic response, working with the Bank of England. Prime Minister Boris Johnson has split parliament, his party and the electorate by promising to deliver Brexit on Oct. 31, with or without a transition agreement - potentially risking food, medicine and fuel shortages.

“I’ve tasked the Treasury with preparing a comprehensive economic response to support the economy, working closely with the Bank of England,” he said. “We’re ready to draw on the full armory of economic policy if needed.” “Deal or no deal, we will be ready.” With an early election widely anticipated, Javid also tried to shift the focus to what he called “the people’s priorities” - issues the party believes matter more to voters in the long run.

He said he wanted to raise incomes over the next five years, promising to “end low pay” by lowering the age at which a higher rate of minimum wages kick in, and increasing the target he wanted that wage to reach in coming years. The government would set a target to raise the so-called National Living Wage to match two-thirds of median earnings, taking it to 10.50 pounds ($12.93) an hour, based on current forecasts, Javid said, up from 8.21 pounds an hour now. He estimated the move would benefit 4 million people.

Javid also committed 5 billion pounds to improving fast broadband access in harder-to-reach parts of the country, announced a strategy to improve bus services, and set out how billions already set aside for road improvements will be spent. After nearly a decade of deficit-reducing spending cuts under a Conservative-led government, the recently appointed Javid, a 49-year-old free markets advocate, has promised to rewrite the rules that underpin spending.