Key Takeaways:
- Rishi Sunak, the former UK Chancellor, is testifying at the Covid-19 inquiry about the government’s economic response to the pandemic.
- Sunak stated that officials knew there would be an economic shock from the pandemic, but they believed it would be temporary.
- The UK’s response to Covid was criticized as "too little, too late" in a damning official report.
- Sunak admitted that there was no "toolkit" to deal with the pandemic and that he was surprised to be made Chancellor.
- The Covid inquiry is expected to cost over £200m and will not release its final report until 2027.
Introduction to the Covid-19 Inquiry
The Covid-19 inquiry is currently underway, with Rishi Sunak, the former UK Chancellor, testifying about the government’s economic response to the pandemic. The inquiry, which started in 2022, is expected to cost over £200m and will not release its final report until 2027. The inquiry is investigating the decision-making process of the UK government, as well as the administrations in Scotland, Wales, and Northern Ireland, across a range of topics, including procurement, the care sector, children and young people, vaccines, and the impact the pandemic had on the healthcare system.
Sunak’s Testimony
Sunak stated that officials knew there would be an economic shock from the pandemic, but they believed it would be temporary. He said that the government’s focus was on making sure that the temporary shock did not have long-term serious economic consequences. Sunak also admitted that there was no "toolkit" to deal with the pandemic and that he was surprised to be made Chancellor. He had been appointed Chancellor in February 2020, just before the pandemic hit, and had to prepare a budget in a short amount of time.
Criticism of the UK’s Response
The UK’s response to Covid was criticized as "too little, too late" in a damning official report. The report found that the introduction of a lockdown even a week earlier could have saved over 20,000 lives. The report also criticized the "toxic and chaotic" culture inside Boris Johnson’s Downing Street, which the then-Prime Minister allegedly actively embraced. Sunak’s "eat out to help out" scheme, which gave diners a state-funded £10 discount, was also criticized for potentially driving a second wave of Covid infections.
Economic Impact of the Pandemic
The pandemic had a severe impact on the UK economy, with a huge drop in GDP during the first national lockdown in 2020. The government introduced the Coronavirus Job Retention Scheme, also known as furlough, which subsidized the wages of employees hit by the pandemic. The scheme covered over 11.7 million jobs between March 2020 and September 2021, at a cost of roughly £70bn. The Treasury estimated that total spending by the government across all its support measures amounted to £373bn.
Sunak’s Defense of His Policies
Sunak has defended his "eat out to help out" scheme, saying it prevented job losses. However, research has shown that the scheme may have caused a rise in Covid infections, and the economic benefits were short-lived. Sunak is expected to face questions about the economic impact of the pandemic and his response to it during his testimony at the Covid-19 inquiry.
Conclusion
The Covid-19 inquiry is an important investigation into the UK government’s response to the pandemic. Sunak’s testimony provides valuable insights into the government’s decision-making process and the challenges they faced in responding to the pandemic. The inquiry’s findings will help to inform future policy decisions and ensure that the UK is better prepared to respond to future pandemics.