Whatever Reeves announces today, Britain is still paying for lockdown |
The Labour Party were great enthusiasts for lockdown, demanding longer and harsher restrictions. The costs of this folly have now caught up with them as the Budget today will demonstrate, says Paul Ormerod
Regardless of the precise measures brought in by the Chancellor, Rachel Reeves, in the Budget to be announced today, a fearful spectre haunts the public finances of the UK. Namely, the spectre of the costs of lockdown.
In the calendar years 2017-19, immediately before the pandemic, the UK government borrowed around £50bn each year. This soared to £273bn in 2020, followed by a further £166bn in 2021.
This massive increase in indebtedness continues to hold the public finances in a vice-like grip. It dominates the public policy discourse around the affordability of various schemes.
Incredibly, the second report of the Covid enquiry, chaired by Baroness Hallett, which was published last week focuses almost entirely on whether lockdown saved lives.
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