Covid inquiry hears from businesses as it begins examining economic response

The Covid-19 inquiry has heard from people who struggled to stay afloat during the pandemic as it turns to examining the economic impact of the lockdowns and the success of the government’s support schemes.

Business leaders and limited company directors were among those to share details of their experiences including struggling to make ends meet, having to make their staff redundant, losing savings and not being able to access financial support.

It kicked off the third stage of the independent public inquiry which will examine the economic response of the government to the pandemic.

Over the course of four weeks, the module will hear evidence from key figures including former chancellor Rishi Sunak and the Governor of the Bank of England, Andrew Bailey.

Monday’s hearing began with an impact video featuring people whose lives were affected by the pandemic, with some participants breaking down in tears as they relayed the financial hardship they or people they knew faced.

Others described receiving loans from the government which they are still paying back.

The inquiry heard that government decision-makers were forced to respond to an unprecedented economic shock that disproportionately impacted those on lower incomes.

Social housing tenants were more likely to work in jobs that were impacted by social distancing and less likely to be able to work from home, according to the opening submissions.

Spending

The Treasury has estimated that total spending by the government across all its support measures amounted to £373 billion.

This included £69 billion for the Coronavirus Job Retention Scheme, known as furlough, which is estimated to have directly preserved four million jobs across the UK workforce, the inquiry heard.

Others to appear before the inquiry during this phase include Baroness Therese Coffey, the former work and pensions minister, and former Treasury officials.