Eighth Report: Economic impact of coronavirus: the challenges of recovery

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.

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.

The government acknowledged the need to consider additional measures, stating it is continuing to monitor consumer spending trends and that its economic response will evolve and adapt as needed, without committing to specific new actions.

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.

The government acknowledges its commitment to levelling up, citing ongoing work like establishing a Public Value Framework, developing priority outcomes, reviewing the Green Book, and relocating civil service roles, but does not specifically detail a plan for managing the transition to mitigate the crisis and prevent further inequalities as requested.

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.

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.

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.

The government states it will "consider" publishing an updated distributional analysis at an appropriate point but outlines challenges in producing it for wider characteristics. For the request to include unemployment rates, they note that the Office for National Statistics already publishes this data by various protected characteristics.

The government states that the £20 increase in Universal Credit will continue until April 2021, partially addressing the call for extended generosity. However, it only references existing enhanced Statutory Sick Pay provisions rather than committing to conducting a study on its adequacy and eligibility.

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.

The government rejects the recommendation to outline a plan for recapitalising SME balance sheets, stating that accredited lenders, not the government, are best placed to support borrowers with government-guaranteed loans. They have considered the proposed interventions but maintain their view.

The government notes the British Business Bank's key role in the COVID-19 response and states it will consider lessons learned from this experience to inform future recovery phases. It also describes existing mechanisms for supporting strategically important companies.

The government acknowledges the need to ensure the long-term health of public finances but defers setting out a detailed roadmap or revised fiscal framework until "in due course," as the economic and fiscal outlook becomes clearer.

The government acknowledges the need to ensure the long-term health of public finances but defers setting out a detailed roadmap or revised fiscal framework until "in due course," as the economic and fiscal outlook becomes clearer.

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.

The government clarifies that the OBR's mandate is primarily national, as defined by the Budget Responsibility and National Audit Act 2011, though it undertakes some sub-national work. This implies that a broader role in monitoring "levelling up" is outside its remit.

The government response copies the recommendation text but only addresses the Bank of England's part, stating the Bank will consider whether more regional data could be published. It does not address the recommendations for the Treasury and OBR to raise the profile of regional data or to review their remits.

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.

The government response provides a general update on its economic support measures during the pandemic, including extensions to the Coronavirus Job Retention Scheme and business loan schemes, but does not address the specific recommendation regarding local government spending and its costing in future reviews.

The government provided a general update on national support packages, including the extension of the CJRS and various loan schemes, following new national restrictions. However, it did not specifically set out a public document on support available to local authorities in localised lockdowns or explain how it would work with them.

The government response details its general economic support package during the pandemic, including extensions to the Coronavirus Job Retention Scheme and loan schemes, but does not engage with the committee's nuanced observation on the trade-offs and impacts of lockdowns.

The government response details its general economic support measures, including extensions to the Coronavirus Job Retention Scheme and business loan schemes, but does not address the recommendation about being clearer on the harms and trade-offs of social restrictions and how decisions are balanced.

The government's response did not address the committee's observation regarding the synchronisation challenges between OBR analysis and government announcements during the crisis. Instead, it discussed the OBR's mandate and the risks of expanding its responsibilities.

The government acknowledged the recommendation, describing the existing independent role of the OBR in forecasting and their joint macroeconomic model, but did not commit to new clarification on the process for declaring a fiscal event.

The government rejected the recommendation, stating that the Treasury does not produce its own macroeconomic forecasts and instead relies on independent forecasts from the OBR, Bank of England, ONS data, and external sources for policy advice.

The government acknowledged concerns about pandemic insurance cover, stating HM Treasury is working closely with insurers, trade bodies, and regulators to understand how the sector can help businesses and to learn lessons for potential future pandemics, while monitoring solvency.

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.

The government states it remains alert and ready to adapt its approach, continuing to monitor trends and ensuring its economic response evolves to provide necessary support, aligning with the call for continued flexibility.