Covid-19: Economic Impact of Lockdowns Debate

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Department: HM Treasury

Covid-19: Economic Impact of Lockdowns

Sammy Wilson Excerpts
Tuesday 29th November 2022

(1 year, 5 months ago)

Westminster Hall
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Esther McVey Portrait Esther McVey
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I was quoting Lord Sumption, the former Supreme Court judge, who was talking about the way governments were led at that time—those were his words. What we need to take from them is the question of why those decisions were not questioned or challenged by Members of Parliament. Why were those decisions not challenged? If we look at the record of the House, the decision appears popular because MPs voted for it pretty much unanimously, when there should have been greater debate.

Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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Does the right hon. Lady accept that Lord Sumption was right, although maybe not according to the common use of the term “populism”? First, the use of fear encouraged people to think, “There is no alternative. I have got to do this.” Secondly, the lack of any examination of the measures by the media ensured that there was not any contrary point of view, so listening politicians heard people saying out of fear, “You’ve got to do something”, and the media, when questioning that, saying, “This is the right thing to do.”

Esther McVey Portrait Esther McVey
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I thank the hon. Gentleman for making that point. That is why I quoted Neil Ferguson at the start of the debate, who said that he never thought a western democracy would lock down, and why I posed the question about whether a campaign of fear was then brought forward, creating an atmosphere in which no one could dissent or ask questions. Going back to the question raised by the hon. Member for North Ayrshire and Arran (Patricia Gibson), there appeared to be a giant consensus across all political parties, leading to that word “popular” at the time.

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Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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I congratulate the right hon. Member for Tatton (Esther McVey) on securing the debate, and I thank her for her sterling work in leading the all-party parliamentary group on pandemic response and recovery. The APPG has delved into many issues that those who made or supported decisions that led to this situation would love to forget. There is a desire to put all this behind us, and to ignore the fact that there was controversy about the decisions made at the time. That controversy was submerged by a deluge of fear tactics and an unwillingness to debate the issue. The media played a big part in that. I did a number of interviews back home in Northern Ireland, and people who questioned decisions were regarded as almost not caring whether people lived or died. That was the atmosphere in which the debate was carried on. There was, in part, a deliberate attempt to squeeze people into doing and accepting things that naturally, in an open and democratic society, they would never dream of doing or accepting.

Everybody who has spoken was probably in the group of those in the House of Commons who were prepared to challenge. However, this debate is not about saying, “We told you so.” The debate is important because it ensures that the inquiry into the covid response, which is being carried out, will look at the side of the argument that was ignored, and of which full cognisance was not taken, when decisions were made. The inquiry is independent, but I hope that the Minister accepts that it is important to feed back to the inquiry the point that it must not simply reinforce all the decisions that were made. It must examine whether, when those decisions were made, decision makers sought full knowledge of the consequences that would flow from them.

We are here to look at the economic consequences. Of course, they were felt at the time, but they are still being felt today, as speakers have outlined, and will be felt for a long time. As the economy was locked down and we could not leave people without some kind of support, an immediate consequence was a huge amount of borrowing. The figures have been given today: £376 billion or £407 billion. Those are mind-boggling figures. Some of that went on support for healthy people who could have gone to work safely, and without any consequences for the health service or their families. Even people who worked outside—builders or farm workers—were unable to go to work, because they might be infected by those they worked with. There was the cost of paying healthy people not to work, when they could have worked.

Then there was the splurging on many national health issues, including the rush to buy personal protective equipment, hundreds of millions of pounds-worth of which we have never used. It is still being stored by the countries that were supplying it to us; we are paying them to do that.

There should have been a more focused debate about what was needed and the nature of what we were facing, as well as a willingness to listen to the other side of the argument. On many of the discussion programmes that I took part in, all the people brought in were on one side of the debate, even though the arguments on that side were well known. The media companies had researchers who could have dug out someone on the other side of the debate—the Government were certainly in a position to do that—yet they decided not to.

There was the immediate spending, and the impact on businesses. I can think of many people in my constituency who lost their dream of having their own business. The girl who used to cut my hair had a small hairdressers and employed three people. She obeyed all the rules. She spent what little capital she had on putting up screens and buying different instruments that could all be sterilised after use. She survived the first lockdown, but when it came to the second, she said, “I’ve no more money to keep the business going,” and she lost it. We all know of hundreds of stories like that in our constituencies.

One Monday, I had parliamentary business, and I chose to come in rather than do it by Zoom, because I believed that Parliament should be sitting. As I came through Leicester Square on a Sunday evening at half-past 8—I remember, because I took a photograph of it—I went into Burger King to get a burger; I was not allowed to sit in the place, but I could sit outside, and throughout the time it took me to eat the burger, I was the only person sitting in Leicester Square. How could hospitality businesses ever survive that kind of situation? It was not necessary.

The Government argued, “You’ve got to do these things to save the health service, save older people from death, and stop disease spreading.” Other countries chose different routes and had better outcomes. They did not do the damage that was done here, because rather than spread fear, they gave information that people could choose to act on. Most people, being sensible, would act on sensible advice. I would never have dreamed of going to see my mum and dad when they were alive if I had a bad cold, because they were vulnerable. If that meant I did not see them for a week or two, I did not see them for a week or two, and yet we felt we had to tell people, “You cannot do this because we can’t rely on your common sense.”

There were short-term consequences: businesses went under and huge amounts of debt were built up. The Government were left with a huge amount of debt, which has curtailed their ability to help with the current economic crisis. Then there are the consequences still felt today. If supply chains close down, firms go out of business. If the people supplying the goods that we rely on are no longer there, or cannot get the parts that they need because other parts of the supply chain have been affected, then of course there will be inflationary pressures. People who lived through the pandemic and saved money came out of it immediately wanting to spend, but the goods were not there to spend money on, so we started the inflationary spiral. I will not fall into the trap of blaming the Government for inflation, all the economic difficulties and the fuel crisis, but they have to accept some responsibility for the consequences of the choices they made.

There are other consequences. We had questions to the Secretary of State for Business, Energy and Industrial Strategy today. There were questions about the difficulties that companies have recruiting. Why do they have those difficulties? Because the economically active workforce has declined. In some cases, having lived through furlough, people found that they could live on less. They decided to change their lifestyle abd just not work. They took early retirement or decided to work part-time, and there has been an impact on the labour market.

Hundreds of thousands of people are not able to work because the health service cannot cope—the warnings were given—with all those who were not diagnosed during the lockdown. People were afraid to go to hospital; they were told not to go, and that their doctor would not see them. Now they find themselves unable to work because of sickness. We talk about long covid; we are suffering from long covid—the long-term economic effects of the covid decisions that we made. It is important to have debates such as this, in which we highlight the impact of those decisions. We must ensure proper examination of the decision-making process at the time, and learn lessons from the actions that we took.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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Does my right hon. Friend accept that in Northern Ireland, the impact has been even greater? In a population of less than 1.9 million people, about 400,000 people are on waiting lists. The cancer waiting list and undiagnosed cancers are at an all-time high. The ambulance service is in disarray, and people in our wonderful nursing profession are being left high and dry, despite their expectations. They will not be rewarded, after being told that they were the most valuable people in society.

Sammy Wilson Portrait Sammy Wilson
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The other aspect to this is the excess deaths that we now have. At the time, I did not support the daily death toll being announced on the news. I thought it was wrong to do that. It is strange; there are now excess deaths due to lockdown and its implications on the health service, but we do not publish those numbers. It is a daily reminder of what happened, however. Families across the country are sadly being reminded daily of the impact on the health service of the decision that lockdown was the way to go, even though in many cases the hospitals that closed down, and were not open for normal service, were not dealing with covid patients. I mention that because it reminds me of the fear that was engendered even among health professionals. Many health professionals would phone me and say, “I don’t dare speak out, because if you do, you can get struck off.” Such was the atmosphere of fear.

An issue that I have not yet mentioned is education and the long-term impact of the unnecessary lockdown of schools. Children could not easily become infected or pass on the infection. Even if they did get covid, it had very little impact on them, but they have not escaped the long-term educational impact of being taken away from school.

It has been mentioned briefly, but not enough, that the most severe impact has been felt by the least well-off in our society. I remember going into people’s homes—I probably should not have visited them during lockdown, but I did, because they were my constituents. Those living in blocks of flats did not have a garden to put their youngsters out into, and they were worried that they were not geared up to help their youngsters with their educational needs. They were worried about the long-term impact on their education, and on their social lives. I think we have forgotten that the people hardest hit were the most vulnerable and most needy. I hope that this debate helps to remind us that we should not go down that path again, and that all these issues should be considered.