Coronavirus (Covid-19) has had major implications for the UK economy. There have been debates about a number of possible changes to economic policy when the UK enters the recovery phase. These include: possible major reforms to fiscal policy; whether the Government should facilitate the reallocation of jobs and capital away from the hardest hit sectors of the economy; what measures could be taken if the virus exacerbates inequalities in the UK; and whether the recovery is an opportunity to bring about fundamental changes in the economy and society.
Coronavirus and the Economy (258 KB , PDF)
On 4 June 2020, the House of Lords is due to debate a motion moved by Lord Eatwell (Labour) that “the virtual proceedings do consider (1) the economic lessons learned from the Covid-19 pandemic, and (2) the measures necessary to repair the United Kingdom economy”.
The Office for Budget Responsibility (OBR) and the Bank of England have analysed possible economic scenarios taking into account the impact of coronavirus (Covid-19). Both showed falls in the size of the economy. The Chancellor of the Exchequer, Rishi Sunak, has implemented a range of support measures and said that a key issue would be how much long-term productive capacity would be lost from the economy (“scarring”).
The Institute for Fiscal Studies (IFS) has argued that once the worst effects of the virus have passed, “tough decisions” will be needed on fiscal policy. The Institute for Government has called for longer-term reform of the UK tax system, while the Chancellor has stated that higher growth should be prioritised over the repayment of debt. Turning to monetary policy, some commentators have argued that the expansion of quantitative easing could compromise the Bank of England’s independence.
Other issues have been raised about the management of the economy as it recovers from the coronavirus. These include whether the Government should:
Some commentators have also discussed whether the virus will exacerbate inequalities in the UK and, if so, what measures could be taken. This includes possible major reforms of welfare systems. Others have debated whether the recovery is an opportunity to bring about fundamental changes in the economy and society; for example, to build a more environmentally friendly economy.
Coronavirus and the Economy (258 KB , PDF)
The bill would introduce national insurance relief schemes for employers based in freeport tax sites, as well as for employers of ex-service personnel. The bill also makes other provisions around national insurance. This briefing considers: the background to the bill; what it would do and what happened during its passage through the House of Commons.
Unlike the gender pay gap, there is no legal requirement for companies to publish their ethnicity pay gap. A recent report by the Commission for Race and Ethnic Disparities recommended that the practice remain voluntary due to a lack of diversity in some parts of the country. A coalition of workers’ groups have called for ethnicity pay gap reporting to be made mandatory so employers can better address pay disparities.
The House of Lords made several changes to its procedures during the Covid-19 pandemic. This included the use of virtual sittings and sittings which featured both physical and remote participation. This article provides a chronology of these developments.
