Coronavirus recovery: Johnson has to square the circle between traditional Tory values and demands to tax and spend

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Coronavirus recovery: Johnson has to square the circle between traditional Tory values and demands to tax and spend
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Constituencies that turned blue at the last election are likely to bear the brunt of COVID-induced job losses.

But there are also the beginnings of dividing lines between Labour and the government when it comes to economic recovery.

"The areas that are going to be most hard hit by the job losses are going to be seats Boris Johnson won in the North East and the Midlands, said one senior Labour figure."These places risk the biggest spikes in unemployment because they are low-skilled jobs and more heavily focused on retail and a manufacturing base as well.

"The party likes to have its cake and eat it," observed one senior Tory on the right of the party."This is a prime minister in favour of cakeism and that is the tension between a party that wants to spend lots of money and doesn't want austerity because it is sick of it after 10 years but also wants a flourishing free market where we cut taxes."

It also helps explain why many Conservatives, including Ms Leadsom, are demanding the PM now wind down support schemes. "Otherwise we will inadvertently kill our economy with kindness. If we do too much, we make businesses dependent and they will fail."But the crisis has raised questions around state intervention and spending as the government intervened in the economy in ways that months ago would have been unacceptable.

"And it's doing things that people would not have previously accepted and don't necessarily see as a long term solution. But I do think there's a battle - you saw Jeremy Corbyn said he'd been vindicated by many of the things the government did in response to this crisis.

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