Economic Situation: Coronavirus

Treasury written question – answered on 30th June 2020.

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Photo of Lord Alton of Liverpool Lord Alton of Liverpool Crossbench

To ask Her Majesty's Government what assessment they have made of the findings in the report by McKinsey & Company COVID-19 in the United Kingdom: Assessing jobs at risk and the impact on people and places that (1) “UK Gross Domestic Product in 2020 is expected to shrink by 9 per cent”, (2) “7.6 million jobs are at risk”, (3) “people and places with the lowest incomes are the most vulnerable to job loss… with nearly 50 per cent of all the jobs at risk are in occupations earning less than £10 per hour”; and what measures they intend to put in place to address those findings.

Photo of Lord Agnew of Oulton Lord Agnew of Oulton Minister of State (HM Treasury), Minister of State (Cabinet Office)

The UK, along with the rest of the world, is continuing to face significant economic disruption in the wake of the Covid-19 pandemic, with both the OBR and Bank of England publishing scenarios that are consistent with significant falls in GDP this year.

The Government has announced unprecedented support for the economy, including via the Coronavirus Job Retention Scheme, the Self-Employment Income Support Scheme, the Coronavirus Business Interruption Loan Schemes and the Bounce Back Loan Scheme. However, despite these policies, there will be challenging times ahead, and we will not be able to protect every single job or save every single business.

The Government is committed to supporting the lowest paid workers and helping unemployed people go back into work and so is continuing to review what can be done to support those most vulnerable to job loss and to aid the UK’s economic recovery. We are working to ensure our labour market policy response is appropriate and effective.

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