What was Roosevelt’s New Deal and how does Boris Johnson’s plan compare?

Boris Johnson has loftily compared his new multibillion pound stimulus package for the UK economy to President Franklin D Roosevelt‘s New Deal, drawing scepticism from opposition politicians and historians alike.

In a speech given in Dudley, the West Midlands, on Tuesday, the prime minister said that his infrastructure programme would emulate Roosevelt’s New Deal, launched in 1933 as an attempt to boost the US economy after the trauma of the Great Depression.

Mr Johnson promised to ”build, build, build” his way out of the UK’s economic downturn, while pledging £5bn to “accelerate infrastructure projects”. He also returned to his desire to “level up” places outside of London and the southeast, which was a key theme during his general election campaign.

But critics have noted that the money promised by Mr Johnson falls far short of the funds spent by the US president both in real terms and as a percentage of gross domestic product (GDP).

Iwan Morgan, a history professor at University College London who is currently writing a book about Roosevelt (FDR), told The Independent: “Boris of course likes to compare himself with the so-called greats of history. He’s had a love affair with Churchill for a while and now he seems to be shifting his affections to FDR.”

“He would be well advised to look more closely at the comparison because fundamentally FDR never got the United States out of the Great Depression,” he added.

Roosevelt’s New Deal, a term used to describe a series of measures implemented by the Democratic president from 1933 to 1939, covered a wide range of issues, including investment in large public infrastructure projects and in economic relief.

Under the domestic programme, many people gained employment working for the newly established Public Works Administration, which oversaw the construction of bridges and dams across the country, while new social security measures offered support such as unemployment compensation and old-age and widow’s benefits.

According to Prof Morgan, the New Deal was “very politically successful” because it made provisions for many people from low-income backgrounds, enabling them to see the affect the government could have on people’s lives.

By way of warning to Mr Johnson, he said that large public infrastructure projects require “highly detailed” policy as well as long-term commitment.

“He’s [the prime minister] just got a new slogan, but the New Deal was more than a slogan. It was a a coherent, long-term programme, which may not have succeeded in in its ultimate goal of restoring the economy, but changed America really for the better,” Prof Morgan added.

Labour leader Keir Starmer responded to Mr Johnson's Tuesday announcement by saying that: "The prime minister promised a New Deal, but there's not much that's new and it's not much of a deal."

Ed Miliband called the deal an "absolute fraud" and Labour MP Liz Kendall also questioned Mr Johnson’s analogy.

"So now we discover this 'FDR' speech cuts money for affordable housing---£12bn over 5 years in Budget 2020, now £12bn over 8 years. What an absolute fraud," Mr Miliband tweeted.

And Ms Kendall, Leicester West MP told Sky News: ”Remember Boris Island Airport – it’s a pipe dream – (like) the Garden Bridge that was never built.”

“Roosevelt actually delivered and saved America from the Great Depression, I think the jury will be out on Boris Johnson for that,” she added.

Ed Davey MP, acting leader of the Liberal Democrats, said it was "less New Deal, and more No Deal."

Environmental organisations also expressed concerns that the government’s infrastructure projects will not help to create a greener economy after coronavirus.

Responding to the government’s new package, Shaun Spiers, executive director of the Green Alliance, said: “Boris Johnson’s speech should have fired the starting gun on a healthier, more resilient future for the UK. Unfortunately, the PM seems to have got off to false start.”

The plans announced by the prime minister include the allocation of £1.5bn for hospital maintenance, £1bn for a 10-year school rebuilding scheme and £100m for road projects.

Mr Johnson acknowledged that ”it may seem a bit premature to make a speech now about Britain after Covid”, as Leicester became the first city in the UK to go into a local lockdown on Tuesday. However, he added that ”we cannot continue simply to be prisoners of this crisis”.

Chancellor Rishi Sunak is expected to set out an economic plan for the first phase of the UK’s recovery next week.