April 21, 2020
This latest report from UK think tank the Centre for Policy Studies looks at the ongoing cost of the coronavirus crisis.
Since the start of the coronavirus crisis, it has been clear that it will have a huge economic and fiscal impact. It was right that the Government put public safety first by imposing the lockdown – and that it acted swiftly and decisively to support the economy. But both of these actions come at a heavy and continuing cost. The Office for Budget Responsibility recently predicted that the deficit for this coming year is likely to comfortably exceed any since the Second World War. The Centre for Policy Studies, the leading centre-right think tank, has been working to estimate the ongoing cost of coronavirus to the Government’s finances, incorporating official data as well as estimates from the OBR, Institute for Fiscal Studies and others. The CPS’s coronavirus counter, overseen by Caroline Elsom, a Senior Researcher at the think tank, suggests an estimated £127 billion in direct bailout costs and £119 billion in indirect costs such as lower tax revenue, based on the OBR scenario of a three-month lockdown followed by three months of looser restrictions.Read Full Report
By Jonathan Cribb; Tom Waters; Thomas Wernham; Xiaowei XuRead more