Covid-19: Economic Impact of Lockdowns

Debate between Abena Oppong-Asare and Ian Paisley

Tuesday 29th November 2022 Westminster Hall

[Abena Oppong-Asare]

I will take your comments on board, Mrs Murray.

We know that the impacts of covid-19—particularly the economic impacts—run deeper. Just this month, new information has been revealed detailing how some people, including a Tory peer, sought to use covid-19 and lockdowns for their own benefit. PPE Medpro was given £230 million in Government contracts after a referral to the VIP fast lane by a Tory peer. The extent of her involvement in PPE Medpro has now come to light, and tens of millions of pounds of taxpayers’ money ended up in offshore accounts. The protective equipment produced by PPE Medpro was substandard: 25 million surgical gowns, which cost the taxpayer £122 million, were rejected by the Department of Health and Social Care after technical inspection because they were completely unusable. We also know that £6.7 billion was wasted on covid payments to businesses and individuals fraudulently or by mistake.

The economic impact of covid-19 lockdowns was immense, and was exacerbated by dither and delay in Downing Street, and hard-working businesses, families and individuals suffered as a result. It has left us with an economy that lags behind the pack. Wages are lower in 2022 in real terms than when the Tories came to power in 2010, and business investment is 8% below its pre-pandemic peak. The mini Budget from the short-lived Prime Minister and Chancellor crashed our economy.

The economic facts speak for themselves. We are now the only G7 economy that is smaller than it was before the pandemic. Other countries are still dealing with the economic impacts of covid-19, but we are doing worse. We are at the back of the pack, lagging far behind. The Chancellor said he wants to address the impacts, but again the economic facts speak for themselves.

Perhaps I am being a bit unfair to the current Chancellor and Government. They have quite a task on their hands. After all, for the 12 years in which their party has been in Government, low growth and low ambition have held our country back. What would Labour do fix the mess and grow our economy in the aftermath of covid? Back in January, we proposed a windfall tax on oil and gas giants—on the profits of rising prices and war. The Government ignored our calls and instead pressed ahead with their own windfall tax, which amounts to a huge giveaway of public money to the very oil and gas companies that are making record profits. Under the scheme, some oil and gas companies will pay zero tax this year, despite record global profits.

[Ian Paisley]

I have listened carefully to the hon. Lady. Some of us who turned up to Parliament during that terrible time voted against the Government’s proposals. I think I voted against every single Government restriction except one. The hon. Lady and her party, I think, voted for them all. There is a bit of complicity here: if somebody’s hands are on the steering wheel and they keep driving in one direction, it is hard for them to say in hindsight, “Something different should have been done.” This grates on me just a little because there were opportunities all along the road to say, “There’s a different course of action that can be taken here.”

[Abena Oppong-Asare]

I want to be clear that the Labour party did raise concerns throughout the pandemic that the Government were not looking at the scientific advice, and they took late action to address and deal with it.

To conclude, as we look to recover from the pandemic, we need an ambitious plan for growth. That is what Labour has presented and that is what we will champion.