Coronavirus (Covid-19) has had major implications for the UK economy. There have been debates about a number of possible changes to economic policy when the UK enters the recovery phase. These include: possible major reforms to fiscal policy; whether the Government should facilitate the reallocation of jobs and capital away from the hardest hit sectors of the economy; what measures could be taken if the virus exacerbates inequalities in the UK; and whether the recovery is an opportunity to bring about fundamental changes in the economy and society.
Coronavirus and the Economy (258KB PDF)
On 4 June 2020, the House of Lords is due to debate a motion moved by Lord Eatwell (Labour) that “the virtual proceedings do consider (1) the economic lessons learned from the Covid-19 pandemic, and (2) the measures necessary to repair the United Kingdom economy”.
The Office for Budget Responsibility (OBR) and the Bank of England have analysed possible economic scenarios taking into account the impact of coronavirus (Covid-19). Both showed falls in the size of the economy. The Chancellor of the Exchequer, Rishi Sunak, has implemented a range of support measures and said that a key issue would be how much long-term productive capacity would be lost from the economy (“scarring”).
The Institute for Fiscal Studies (IFS) has argued that once the worst effects of the virus have passed, “tough decisions” will be needed on fiscal policy. The Institute for Government has called for longer-term reform of the UK tax system, while the Chancellor has stated that higher growth should be prioritised over the repayment of debt. Turning to monetary policy, some commentators have argued that the expansion of quantitative easing could compromise the Bank of England’s independence.
Other issues have been raised about the management of the economy as it recovers from the coronavirus. These include whether the Government should:
Some commentators have also discussed whether the virus will exacerbate inequalities in the UK and, if so, what measures could be taken. This includes possible major reforms of welfare systems. Others have debated whether the recovery is an opportunity to bring about fundamental changes in the economy and society; for example, to build a more environmentally friendly economy.
Coronavirus and the Economy (258KB PDF)
In January 2026, the government announced a new scheme to support urgent repairs and essential improvements to listed places of worship. Called the ‘Places of worship renewal fund for England’, it replaced the ‘Listed places of worship grant scheme’ which had run since 2001. This briefing provides an overview of both schemes, the government’s reasoning for the change and the reaction of stakeholders.
There have been big differences in expenditure across different forms of healthcare for a number of years. In 2024/25, spending on acute care was £74.7bn, compared to £14.5bn on primary care and £13.8bn on community services. Both the 2024 Labour Party manifesto and the subsequent 10 year health plan for England contained an emphasis on shifting towards more care being delivered in local communities rather than in acute settings, dubbed a ‘neighbourhood health service’.
Concerns about abuse and intimidation towards elected representatives have increased in recent years. The Jo Cox Civility Commission made a number of recommendations in a 2024 report to address this because of concerns that this activity would dissuade people from standing in elections and encourage existing representatives to stand down. The government has instigated a number of policies to tackle the abuse and intimidation of elected representatives.
