Covid-19: Financial Support Debate

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Department: HM Treasury

Covid-19: Financial Support

Esther McVey Excerpts
Thursday 15th January 2026

(1 day, 9 hours ago)

Commons Chamber
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Esther McVey Portrait Esther McVey (Tatton) (Con)
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I thank the hon. Member for Stratford-on-Avon (Manuela Perteghella) for securing the debate and the Backbench Business Committee for granting it.

There is no doubt that the hardship affecting families, businesses and communities as a result of covid-19 policies is ongoing. The depth of suffering is hard to read about. People have been pushed to their limits, mentally and financially, and have had to endure indignity and injustice through no fault of their own. I hope that we can now all agree that it should never have happened. It is something that we never want to see happen again.

The various Government financial support schemes that were set up helped many people, but for the forgotten businesses and individuals who, for one bureaucratic reason or another, were deemed ineligible, the situation was patently unfair and unjust. Some 3.8 million UK taxpayers were excluded from support, while the rest of the working population were paid to stay at home. Why were they excluded? The reasons were arbitrary. Financial support was not forthcoming if a person was newly self-employed, a PAYE freelancer, a director paid in dividends, starting a new job—the list goes on. The rules were random and confusing, and they pushed so many people into desperate situations.

Sadly, we should not have been surprised that that happened. Although some marvelled at the speedy roll-out of the Government’s schemes, the reality was that they were patchy, poorly thought out and full of gaps—of course they were. How could we ever expect to shut down our society and economy and be able to cover the gigantic financial cost of doing so while ensuring that every person was properly looked after? It was unrealistic —an unprecedented state intervention that was doomed to fail.

I totally agree with Members present who are pushing for assurances that that will never happen again, but if we cannot look back with honesty and clarity about what was done, we are doomed to make the same mistakes again. Lockdown was the mistake from which all that injustice and suffering flowed. It was an unknown and unevidenced imposition that should never have been inflicted upon the British people. Many experts predicted from the start that it would cause misery and, horrifically, cost hundreds of thousands of lives through unintended but very real collateral damage.

Iqbal Mohamed Portrait Iqbal Mohamed (Dewsbury and Batley) (Ind)
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I thank the right hon. Member for her powerful speech. Our opinions on lockdown may differ, but does she agree that, had we not gone into lockdown, many more thousands of people would have lost their lives?

Esther McVey Portrait Esther McVey
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I do not believe the evidence proves that. We can look to other parts of the world where that was not the case.

This policy had unwavering and enthusiastic support from across the House, with just a few of us in this House —too few—raising valid concerns, but we were shut down. It should be obvious that some people cannot be damaged in the name of protecting others with interventions such as lockdowns that we do not even know will work. The moral mathematics never added up.

And now we must live with the consequences of what we did. We spent in the region of £400 billion on the covid-19 response—a vast sum that will be clawed back through increased taxation and hardship for generations to come. Of course, the Conservative party had to put up taxes to pay for that £400 billion, and it was voted for by pretty much every Member in the House. For me, such a statist, socialist intervention would never work, and that is proving to be the case.

Those businesses that did manage to survive after everything that was thrown at them in the name of covid are now having to face more gloom and doom from this socialist Government in charge of our country, with their two tax-rising Budgets and their removal of business rates relief without understanding it—

Caroline Nokes Portrait Madam Deputy Speaker (Caroline Nokes)
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Order. The subject of the debate is financial support specifically during the covid pandemic. The right hon. Lady might want to make sure she stays within scope of that.

Esther McVey Portrait Esther McVey
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Thank you, Madam Deputy Speaker. I added on that sentence because I felt it was very relevant that those who did manage to survive the pandemic are now not surviving, because of the extra taxes that are being put upon them and the removal of business rates relief that was introduced during covid, and it seems that the Chancellor does not even know how that works. Those businesses are suffering twofold, because some of that covid benefit is now being removed. It is no wonder Labour MPs are being banned from pubs, as we see mass closures of pubs.

I simply ask that we examine the bigger picture. Those 3.8 million people who were excluded from financial support suffered a terrible injustice, but so too did those who received support, because lockdown took from everyone: children denied education; mothers forced to give birth alone; people suffering heart attacks, strokes and sepsis but too frightened to burden the NHS; bereaved families unable to mourn the dead—the list of injustices goes on and on. None of it should ever have happened. The costs were always going to be too high, and worse, there appears to be no evidence that lockdown prevented covid infections.

The covid inquiry recently made two incredible assertions. One was that lockdowns were harmful but should have started earlier, and the other was that the modelling should not have been used to justify major policy but simultaneously proved that 23,000 lives could have been saved. Finally, lockdown was, as Professor Sunetra Gupta from the University of Oxford said—

Caroline Nokes Portrait Madam Deputy Speaker
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Order. The debate is not about lockdown; it is about financial support. I hope the right hon. Lady is concluding her remarks.

Esther McVey Portrait Esther McVey
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I am concluding my remarks. I am pleased to have been able to speak today as one of a handful of 650 MPs who stood by “the Forgotten Ltd” and by many of our constituents whose businesses went out of business. I was one of the few in the House who stood up for them.

Finally, as Professor Sunetra Gupta said, this was like taking a hammer to a fly on a pane of glass: you might or might not kill the fly, but you definitely shatter the window. It will take us a long time to pick up the pieces. Next time we face a similar crisis, let us not panic and reach for the hammer.