Ministers have been charged with the unenviable task of ensuring that hitting pause now does not lead to long-lasting damage. The chancellor has committed to doing “whatever it takes” to see the UK through the crisis.
The Treasury’s package includes £330 billion of zero-interest loans and loan guarantees for businesses, business rates relief and cash grants for retail, hospitality, and leisure companies, £10,000 cash grants to all small businesses, and a three month mortgage holiday for those in distress.
More government action, we are told, will come with employment support. But will this be enough to ensure the economy can recover? What, if anything, could the government be doing differently to reduce the damage?
Joining the IEA’s Digital Manager Darren Grimes for the second of a two-part podcast series is Dr Steve Davies, Head of Education here at the Institute of Economic Affairs, to give his take on the government’s economic response to the Coronavirus crisis.