Economic impact of coronavirus

Treasury Committee Closed Inquiry
Opened: 19 Mar 2020 Closed: 20 Jan 2022 Parliament page
In the first stage of its economic impact of the coronavirus inquiry, the Committee issued a call for evidence on the speed, effectiveness and reach of the Government’s and Bank of England’s immediate financial responses to coronavirus. The Committee highlighted gaps in support to the Treasury. In the second stage, … Read more
35 Recommendations
19 Conclusions
3 Reports
51 Letters
23 Events
Activity timeline 58 events
26 Apr
2021
Report published
14 Apr
2021
Correspondence
17 Feb
2021
Correspondence
15 Feb
2021
Report published
10 Feb
2021
Correspondence
8 Feb
2021
Correspondence
3 Feb
2021
Correspondence
3 Feb
2021
Correspondence
20 Nov
2020
Report published
21 Oct
2020
Correspondence
16 Sep
2020
Correspondence
11 Sep
2020
Report published
Recommendations & Conclusions
21 results
Clear
1 Conclusion Accepted
Eighth Report: Economic impact of …
In the first half of this year the UK suffered its worst recession in modern...
In the first half of this year the UK suffered its worst recession in modern history. The latest GDP figures suggest a bounce back has begun. But the path of the economy does not only depend on the course of … Read more
Government Response
The government acknowledges the committee's observation by outlining the extensive ongoing support packages, including extending the Coronavirus Job Retention Scheme and various loan schemes, stating that protecting jobs and livelihoods has been its economic priority.
HM Treasury
View details
2 Conclusion Accepted
Eighth Report: Economic impact of …
Consumption is returning following the lifting of Government restrictions.
Consumption is returning following the lifting of Government restrictions. However, continued consumer caution around re-engaging with the economy, the prospect of more localised outbreaks and a second wave are dampening a full recovery to pre- pandemic levels of consumer spending. … Read more
Government Response
The government acknowledges the report and details its ongoing economic priority to protect jobs and livelihoods through over £200 billion in support. It outlines extensions to schemes like the Coronavirus Job Retention Scheme until March 2021 and various loan schemes until January 2021, along with adjustments to allow loan top-ups.
HM Treasury
View details
4 Conclusion Accepted
Eighth Report: Economic impact of …
We believe the Chancellor was right to start measures to combat long term unemployment in...
We believe the Chancellor was right to start measures to combat long term unemployment in July. Rising unemployment becoming structural and permanent is a critical risk arising from the crisis.
Government Response
The government highlighted the successful implementation of the Kickstart scheme, detailing the vital role of almost 500 registered gateway organisations in assisting smaller employers. They committed to continuing to respond and adapt the scheme to ensure maximum impact for employers and young people.
HM Treasury
View details
6 Recommendation Accepted
Eighth Report: Economic impact of …
A large proportion of businesses in sectors such as hospitality and leisure that are suffering...
A large proportion of businesses in sectors such as hospitality and leisure that are suffering most from social distancing may still have a viable long-term future at the end of October. It is not clear to us that the Job … Read more
Government Response
The government extended the Coronavirus Job Retention Scheme until March 2021 and introduced new targeted grants of up to £3,000 per month for businesses forced to close due to new restrictions. They also provided backdated grants for hospitality/leisure sectors and £1.1 billion funding to local authorities.
HM Treasury
View details
7 Recommendation Accepted
Eighth Report: Economic impact of …
It is vital that workers made redundant have the opportunity to reskill.
It is vital that workers made redundant have the opportunity to reskill. We heard evidence that the poor reputation of schemes in the 1980s actually reduced participants’ employment prospects. Even though the Treasury is unlikely to be responsible for delivering … Read more
Government Response
The government agreed with the recommendation to monitor and evaluate reskilling schemes, committing to establish a framework for gathering evidence and evaluating programmes as part of the Spending Review process.
HM Treasury
View details
8 Conclusion Accepted
Eighth Report: Economic impact of …
The Government also needs to make sure that the requirement for employers interested in offering...
The Government also needs to make sure that the requirement for employers interested in offering fewer than 30 Kickstart roles to apply through a representative organisation does not make the scheme inaccessible to SMEs and charities.
Government Response
The government highlights that gateway organisations are already in place and play a vital role in making the Kickstart scheme accessible to smaller employers, with DWP having implemented a new registration system. They state a commitment to continue adapting the scheme for maximum impact.
HM Treasury
View details
11 Conclusion Accepted
Eighth Report: Economic impact of …
It remains unclear how the Government expects businesses to pay back loans in the future.
It remains unclear how the Government expects businesses to pay back loans in the future. The crisis and the lockdown of the economy meant that businesses have largely forgone revenue which many are unlikely to make up in the future … Read more
Government Response
The government responded by detailing the Pay as you Grow initiative, which offers businesses flexibility in repaying Bounce Back Loans, including extended repayment terms up to 10 years, interest-only options, or payment pauses.
HM Treasury
View details
16 Recommendation Accepted
Eighth Report: Economic impact of …
In order to prevent “levelling up” becoming an empty slogan, the Government should produce a...
In order to prevent “levelling up” becoming an empty slogan, the Government should produce a strategy underpinning it that defines clear objectives and includes the indicators it will use to gauge success at the next fiscal event. The Government needs … Read more
Government Response
The government is committed to levelling up and is currently developing a new Public Value Framework to link departmental spending to outcomes, defining medium- to long-term priority outcomes and metrics for success, as announced at Budget 2020. They are also reviewing the Green Book and relocating 22,000 civil service roles by 2030.
HM Treasury
View details
19 Recommendation Accepted
Eighth Report: Economic impact of …
We call on the Government to throw its diplomatic weight behind the global community in...
We call on the Government to throw its diplomatic weight behind the global community in investing in public health systems in developing countries; ensuring that testing, treatment and a vaccine when developed is made as widely available Economic impact of … Read more
Government Response
The government confirms support for vulnerable countries with over £1 billion aid, championed the Debt Service Suspension Initiative, committed £150 million to the IMF's CCRT, pledged a £2.2 billion loan to the PRGT, and committed £1 billion for global COVID-19 vaccine access for low and middle-income countries.
HM Treasury
View details
28 Recommendation Accepted
Eighth Report: Economic impact of …
The Treasury should consider whether Government intervention is required to support the insurance industry in...
The Treasury should consider whether Government intervention is required to support the insurance industry in finding a solution for pandemic insurance cover; and whether such support would be an effective use of public money. We also recommend that the Treasury … Read more
Government Response
The Treasury is actively working with insurers and regulators to understand future pandemic insurance needs and to learn lessons. It also remains in close contact with the Prudential Regulation Authority to monitor the solvency of the insurance sector and will take all necessary steps to maintain financial stability following the test case judgment.
HM Treasury
View details
2 Recommendation Accepted
Eleventh Report - Economic impact …
We recommend that the Treasury and the Office for Budget Responsibility provide a commentary at...
We recommend that the Treasury and the Office for Budget Responsibility provide a commentary at the time of the Budget on GDP measurement issues and the implications that these measurement issues have for comparisons between the UK and other countries. … Read more
Government Response
The government accepted the recommendation, stating that it had already provided a commentary on GDP measurement issues and international comparisons in pages 11 and 12 of the Budget document.
HM Treasury
View details
3 Conclusion Accepted
Eleventh Report - Economic impact …
Given the economic outlook, we believe that the Government was right to extend both the...
Given the economic outlook, we believe that the Government was right to extend both the Coronavirus Job Retention Scheme and the Self-employment Income Support Scheme to the end of April 2021. However, given the extended duration of restrictions, we believe … Read more
Government Response
The government stated it had already extended the CJRS and SEISS until September, beyond the April 2021 date mentioned, to address the ongoing economic challenges, highlighting the schemes' success and reach.
HM Treasury
View details
4 Recommendation Accepted
Eleventh Report - Economic impact …
The 2019–20 self-assessment income tax returns will provide the Government with additional information that could...
The 2019–20 self-assessment income tax returns will provide the Government with additional information that could allow it to provide support to those who need it but have so far not received it. We therefore strongly urge the Treasury to use … Read more
Government Response
The government accepted the recommendation, announcing that HMRC will use 2019-20 tax returns for the fourth and fifth SEISS grants, potentially allowing over 600,000 newly self-employed individuals to claim support.
HM Treasury
View details
6 Recommendation Accepted
Eleventh Report - Economic impact …
When responding to this report, the Treasury should provide an assessment of the level of...
When responding to this report, the Treasury should provide an assessment of the level of fraud which it believes would arise from the implementation of the DISS scheme.
Government Response
The government provided a draft assessment indicating that the DISS scheme could have a wide error and fraud range, potentially as high as 20%.
HM Treasury
View details
15 Conclusion Accepted
Eleventh Report - Economic impact …
We are disappointed at the lack of analysis provided by the Treasury, despite such analysis...
We are disappointed at the lack of analysis provided by the Treasury, despite such analysis being referenced in the SAGE minutes. Without it, the impression is that the Government is making important decisions without proper regard to all their impacts, … Read more
Government Response
The government acknowledges the concern about economic analysis and asserts that it has published a significant amount of analysis on the health, economic, and social impacts of COVID-19, including analysis underpinning the Roadmap out of lockdown, and has commissioned advice from SAGE.
HM Treasury
View details
16 Recommendation Accepted
Eleventh Report - Economic impact …
We call on the Treasury to be more transparent about the economic analysis which it...
We call on the Treasury to be more transparent about the economic analysis which it undertakes to inform Government decisions in the fight against coronavirus and to publish any such analysis in a timely manner. The House should not be … Read more
Government Response
The government claims it has already published a significant amount of analysis on the health, economic, and social impacts of COVID-19 and public health measures, including for the Roadmap, and commissioned advice from SAGE.
HM Treasury
View details
19 Recommendation Accepted
Eleventh Report - Economic impact …
We strongly urge the Treasury to provide rigorous analysis of future policy choices which quantifies...
We strongly urge the Treasury to provide rigorous analysis of future policy choices which quantifies the harms and benefits of each of the plausible range of alternative policies. It has always been considered a good practice to publish an impact … Read more
Government Response
The government states it has already taken decisions based on health, economic, and social impacts, studied academic literature, and published significant analysis throughout the pandemic, including for the Roadmap.
HM Treasury
View details
20 Conclusion Accepted
Eleventh Report - Economic impact …
While death rates from coronavirus are high, the rationale for Government decisions on social restrictions...
While death rates from coronavirus are high, the rationale for Government decisions on social restrictions is well understood by the public. As the vaccines roll-out proceeds and death rates fall, Government decisions on whether or not to lift restrictions will … Read more
Government Response
The government asserts that it already makes decisions based on the health, economic, and social impacts of COVID-19, utilizing academic literature and SAGE advice to inform its policies and the Roadmap out of lockdown.
HM Treasury
View details
21 Conclusion Accepted
Eleventh Report - Economic impact …
After almost a year of restrictions on social and economic activity, the general public and...
After almost a year of restrictions on social and economic activity, the general public and the business sector need confidence that the Government has as clear and as certain a route out of the crisis as possible.
Government Response
The government states that since the report, it has published its roadmap for the economy's cautious reopening and announced the Budget, which together aim to provide the necessary security and certainty to the public and businesses.
HM Treasury
View details
22 Recommendation Accepted
Eleventh Report - Economic impact …
We recommend that in order to provide some certainty to businesses, as well as to...
We recommend that in order to provide some certainty to businesses, as well as to the general public, the forthcoming Government plan for taking the country out of lockdown should set out criteria of how and when it will lift … Read more
Government Response
The government states that since the report, it has published its roadmap for reopening the economy, fulfilling the recommendation to provide a plan for lifting restrictions, and also announced the Budget for economic support.
HM Treasury
View details
23 Recommendation Accepted
Eleventh Report - Economic impact …
It is vital that economists work together with epidemiologists and health experts to make decisions...
It is vital that economists work together with epidemiologists and health experts to make decisions on social restrictions, and that the output of their work should be made public. We propose that the Government use a more multi-disciplinary approach to … Read more
Government Response
The government states it has already taken decisions based on multi-disciplinary factors (health, economic, social) and published significant analysis, including commissioning SAGE advice, to inform its COVID-19 response.
HM Treasury
View details
Government Response AI assessment · 53 of 35 classified
Accepted 21
Accepted in Part 2
Acknowledged 9
Deferred 4
Not Addressed 8
Rejected 9
Total 35 recs + 19 conclusions
Correspondence 51 letters
14 Apr 2021 Correspondence from the Chief Secretary to HM Treasury, relating to procurement during the pandemic
Parliament page
17 Feb 2021 To committee Letter from the Association of Chartered Certified Accountants (ACCA), relating to gaps in support, dated 3 February 2021
Parliament page
10 Feb 2021 From committee Letter to Chair from Jonathan Athow, Office for National Statistics, regarding the comparability of GDP figures between countries, dated 1 February 2021
Parliament page
8 Feb 2021 From committee Letter to Chair from Caroline Miskin, Technical Manager (Practitioner Support), ICAEW Tax Faculty, following up from oral evidence, dated 22 January 2021
Parliament page
3 Feb 2021 To committee Letter from Chair to Tom Scholar regarding economic analysis and gaps in support, dated 11 January 2021
Parliament page
3 Feb 2021 To committee Response from Tom Scholar to Chair regarding economic analysis and gaps in support, dated 26 January 2021
Parliament page
21 Oct 2020 To committee Letter from the Chancellor relating to the expansion of the Job Support Scheme, dated 9 October 2020
Parliament page
16 Sep 2020 To committee Letter from the Chancellor of the Exchequer relating to follow-up from the evidence session on 15 July, dated 13 August 2020
Parliament page
4 Sep 2020 To committee Letter from the Chancellor of the Exchequer re Committee session on 15 July 2020
Parliament page
1 Sep 2020 To committee Letter from the Office for National Statistics regarding the economic impact of coronavirus, 28 April 2020
Parliament page
23 Jul 2020 Correspondence from Steve Baker MP to the Chancellor following the Committee’s evidence session, dated 21 July 2020
Parliament page
21 Jul 2020 To committee Letter from the Chancellor of the Exchequer re local lockdown in Leicester, dated 15 July 2020
Parliament page
15 Jul 2020 Correspondence from Chancellor relating to changes to Stamp Duty Land Tax, dated 7 July 2020
Parliament page
15 Jul 2020 Correspondence from Chancellor relating to responses to correspondence from MPs, dated 6 July 2020
Parliament page
9 Jul 2020 To committee Letter from the Prime Minister to Chair relating to COVID-19, dated 16 June 2020
Parliament page
9 Jul 2020 To committee Letter from Governor of the Bank of England relating to the Treasury Committee oral evidence session on 20 May, dated 29 June 2020
Parliament page
8 Jul 2020 Chancellor Response regarding COVID19 tests by employers
Parliament page
7 Jul 2020 To committee Letter from Chair of TSC to Chancellor re COVID-19 tests by employers- taxable benefit in kind
Parliament page
7 Jul 2020 To committee Letter from Jon Moulton to Chair relating to Future Fund, dated 22 June 2020
Parliament page
1 Jul 2020 To committee Letter from Chair to Chancellor regarding local lockdowns, dated 1 July 2020
Parliament page
30 Jun 2020 To committee Letter from Chair of TSC to Governor relating to TSC oral evidence session on 20 May 2020, dated 10 June 2020
Parliament page
15 Jun 2020 To committee Letter from the Chancellor of the Exchequer relating to Covid Lending Data, dated 5 June
Parliament page
10 Jun 2020 To committee Letter from HM Treasury following the Treasury Committee evidence session on 29 April, dated 22 May 2020
Parliament page
9 Jun 2020 Correspondence from Jim Harra to the Chair re the number of people who had self-employed income
Parliament page
20 May 2020 To committee Letter from Chief Executive of Barclays UK relating to Bounce Back Loan Scheme (BBLS) website, dated 12 May 2020
Parliament page
20 May 2020 FCA response to Covid-19 Inquiry phase 1 follow-up questions, dated 12 May 2020
Parliament page
20 May 2020 Additional information received from HMRC, 14 May 2020, following the committee hearing with Jim Harra (HMRC Permanent Secretary and CEO) on 8 April 2020 about coronavirus support schemes and the impacts on HMRC
Parliament page
5 May 2020 From committee Letter to Chair from HSBC regarding bank lending data
Parliament page
5 May 2020 From committee Letter to Chair from RBS regarding bank lending data
Parliament page
5 May 2020 From committee Letter to Chair from Bank of Ireland UK regarding bank lending data
Parliament page
5 May 2020 To committee Letter from the Chancellor regarding COVID-19 lending data
Parliament page
5 May 2020 From committee Letter to Chair from Responsible Finance regarding bank lending data
Parliament page
5 May 2020 Financial Secretary to the Treasury, HM, Treasury, to the Chair, relating to the Independent Loan Charge Review
Parliament page
5 May 2020 From committee Letter to Chair from Santander regarding bank lending data
Parliament page
5 May 2020 From committee Letter to Chair from Secure Trust Bank regarding bank lending data
Parliament page
5 May 2020 To committee Letter from Stephen Jones, CEO, UK Finance to the Chair, relating to data on lending through the various government loan guarantee schemes, dated 23 April
Parliament page
5 May 2020 From committee Letter to Chair from Starling Bank regarding bank lending data
Parliament page
5 May 2020 Email to Committee from Newable Limited regarding bank lending data
Parliament page
5 May 2020 From committee Letter to Chair from Cynergy Bank regarding bank lending data
Parliament page
5 May 2020 Email to Committee from the Coventry and Warwickshire Reinvestment Trust regarding bank lending data
Parliament page
5 May 2020 Jim Harra, Chief Executive and First Permanent Secretary, HMRC, to the Chair, relating to Independent Review of analytical and quality assurance processes underpinning HMRC’s Official Statistics
Parliament page
5 May 2020 To committee Letter from the British Business Bank regarding bank lending data
Parliament page
5 May 2020 To committee Letter from Chair to Stephen Jones, CEO, UK Finance, relating to data on lending through the various government loan guarantee schemes, dated 30 April
Parliament page
5 May 2020 From committee Letter to Chair from Virgin Money regarding bank lending data
Parliament page
5 May 2020 From committee Letter to Chair from Funding Circle regarding bank lending data
Parliament page
4 May 2020 From committee Letter to Chair from Metro Bank regarding bank lending data
Parliament page
30 Apr 2020 To committee Letter from Chancellor of the Exchequer, relating to COVID-19 interventions, dated 6 April 2020
Parliament page
30 Apr 2020 To committee Letter from the Financial Secretary relating to the delay of the reform to the off-payroll working rules, dated 18 March 2020
Parliament page
30 Apr 2020 To committee Letter from the Chancellor of the Exchequer, relating to the creation of the Coronavirus Large Business Interruption Loan Scheme, dated 3 April 2020
Parliament page
30 Apr 2020 Further summary of evidence to the Economic impact of Coronavirus inquiry
Parliament page
30 Apr 2020 Chair to the Chancellor of the Exchequer, relating to issues raised in written evidence to the Committee, dated 8 April 2020
Parliament page