Eighth Report: Economic impact of coronavirus: the challenges of recovery
Select Committee
Treasury Committee
HC 271
11 September 2020
Government response
Fifth Special Report: Economic impact of coronavirus: the challenges of recovery: Government Response to the Committee’s Eighth Report of Session 2019–21 · published 20 Nov 2020
Recommendations & Conclusions
7 results
3
Recommendation
Acknowledged
The Chancellor was right to begin stimulating consumption at the time of the Chancellor’s Plan...
Recommendation
The Chancellor was right to begin stimulating consumption at the time of the Chancellor’s Plan for Jobs, especially in the hospitality and tourism sector, to ensure these businesses, often reliant on summer months, did not start cutting jobs. However the …
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Government Response Summary
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.
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5
Recommendation
Acknowledged
Para 59
As the crisis moves beyond full lock-down, it is important to effectively target assistance to...
Recommendation
As the crisis moves beyond full lock-down, it is important to effectively target assistance to those businesses and individuals who need it. The ability of labour to move from sector to sector will not be a painless process and will …
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Government Response Summary
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.
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9
Recommendation
Acknowledged
Para 79
The crisis has hit different groups of people unequally.
Recommendation
The crisis has hit different groups of people unequally. It is also likely that the differences in hours of paid work carried out between men and women observed during the lockdown may lead to a widening of the gender pay …
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Government Response Summary
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.
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25
Recommendation
Acknowledged
Para 177
We suggest that by the next fiscal event the Treasury clarifies its relationship with the...
Recommendation
We suggest that by the next fiscal event the Treasury clarifies its relationship with the OBR, in particular what the process is for declaring a Treasury announcement to be a fiscal event requiring an OBR economic and fiscal forecast.
Government Response Summary
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.
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27
Conclusion
Acknowledged
We are concerned about the implications of the pandemic for insurance, given that businesses will...
Conclusion
We are concerned about the implications of the pandemic for insurance, given that businesses will need the confidence that insurance cover provides if they are to resume normal activities. (Paragraph 184) 58 Economic impact of coronavirus: the challenges of recovery
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Government Response Summary
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.
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29
Recommendation
Para 189
The Government must be willing to be flexible, even on manifesto commitments, in response to...
Recommendation
The Government must be willing to be flexible, even on manifesto commitments, in response to the crisis. Lifting the Triple Lock on pensions next year is a sensible proposal and should be carefully considered.
HM Treasury
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30
Recommendation
Acknowledged
One of the clear strengths of the Treasury’s response in the initial stages of the...
Recommendation
One of the clear strengths of the Treasury’s response in the initial stages of the crisis has been its willingness to listen and adjust its policies in response to feedback. However, we are disappointed in its refusal to implement recommendations …
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Government Response Summary
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.
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