There is a way to get our economy back on track – better taxes

British business won’t just bounce back. If the government does nothing, debt will spiral out of control and it will be tempting to let inflation rip. Neither would be good for the country, warns Hugo Dixon

Boris Johnson will have to raise taxes to create jobs, but he must do it fairly (EPA)

The coronavirus pandemic will blow an almighty hole in the public finances, which will eventually have to be paid for, one way or another. The good news is that we can repair the damage in a way that creates a fairer and greener society.

The extra borrowing is likely to be even higher than in a leaked Treasury analysis, which forecasts a £337bn deficit this year followed by a £83bn one next year. This is because the government will need a “new deal” to get the economy moving once the current life support operation is over.

To stop mass long-term unemployment – especially a lost generation of young people – the government will have to create jobs. This will be expensive.