Alistair Darling blasts lack of international cooperation on tackling coronavirus as ex-chancellor who dealt with 2008 financial crisis warns government may be forced to bailout airlines and other major companies
- Alistair Darling was Chancellor of the Exchequer when 2008 financial crisis hit
- Today he warned ministers must not ‘close the door’ on bailouts for big business
- Said government must ensure UK economy can still function after coronavirus
- Also said response to coronavirus ‘singularly lacking’ international cooperation
- Comments come after the FTSE suffered its biggest one-day fall since 1987
- Coronavirus symptoms: what are they and should you see a doctor?
Alistair Darling today blasted the lack of international cooperation on tackling coronavirus as he warned ministers not to ‘close the door’ on massive bailouts for struggling companies.
The former chancellor who was in charge of Britain’s economy in the wake of the 2008 economic crisis said countries were not working together today in the way they did a decade ago.
He suggested that would ultimately harm the chances of a swift recovery for the global economy.
He also said the government could be forced in the coming months to prop up large businesses like airlines which could otherwise go under as a result of the deadly outbreak.
Alistair Darling, pictured at Labour Party conference in 2014, today hit out at the apparent lack of international cooperation on tackling coronavirus
Lord Darling, pictured with Gordon Brown, was chancellor in 2008 when the global economic crisis hit
Lord Darling, a Labour peer, said it was vital ministers acted to ensure the UK’s ‘basic economic infrastructure’ remains operational so the country can get back on its feet after the outbreak abates.
His comments came after London’s FTSE 100 Index yesterday suffered its biggest one-day fall since 1987 as more than £160 billion was wiped off the value of blue chip stocks amid Covid-19 carnage.
Chancellor Rishi Sunak unveiled his Budget on Wednesday which included a £30 billion package of measures designed to stimulate the UK economy and keep it afloat during the coronavirus outbreak.
But Lord Darling told BBC Radio 4’s Today programme he believed Mr Sunak will need to bring forward further help for the economy as the crisis develops.
He said: ‘As this intensifies, as it carries on, and I wouldn’t criticise the Chancellor for doing this, he will need to go back to the House of Commons – I had to do it several times during the financial crisis – they must do whatever it takes to keep the economy going.’
Asked if that included 2008 bank-style bailouts for companies and industries which in the weeks ahead could face financial difficulty, for example airlines, Lord Darling said: ‘I think they shouldn’t close the door to anything at the moment.
‘The Bank of England has, for example, made considerable funds available to be disbursed through the banking system to provide loans to companies, particularly small and medium sized enterprises.
‘But the government does have to have an eye on as we come through this, and we will, at some stage we will recover, we need to make sure we have still got the basic economic infrastructure that will work.’
Lord Darling said one of the reasons why the world was able to recover from the 2008 economic crisis was that countries worked together and agreed an action plan.
He said that global unity was not in evidence in the response so far to coronavirus.
‘I think that one other element which is similar to what happened 10 years ago but is singularly lacking today, one of the reasons that the global economy recovered 10 years ago was because of international cooperation,’ he said.
‘We all did the same thing, from communist China to republican-led United States, international cooperation at the moment is in something of short supply.’
He added: ‘International cooperation to my mind is very, very important.’