Public Finance: Coronavirus

(asked on 22nd April 2020) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what estimate they have made of the weekly total cost of the financial support being provided to individuals and businesses as a result of the COVID-19 pandemic.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 6th May 2020

The Government has announced unprecedented support for public services, business and workers to protect against the current economic emergency. These steps are necessary to ensure that the country, economy and public finances are stronger in the longer-term.

Precise costs will depend on a range of factors including the impact of the crisis on the wider economy and the level of take up for each scheme.

The Office for Budget Responsibility (OBR) published a coronavirus reference scenario on 14 April which provides insight into the potential fiscal costs under a particular set of economic circumstances and updated their policy costings table on 30 April. In their scenario, the OBR estimate the direct cost of Government decisions to be £103.7 billion in 2020/21. The OBR note that the measures taken should help limit the long-term damage to the economy and public finances, and that the costs of inaction would have been higher.

A full assessment of the economic and fiscal position will be made at the next Budget alongside an updated OBR forecast.

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