Oral Answers to Questions Debate

Full Debate: Read Full Debate
Department: HM Treasury
Tuesday 20th October 2020

(3 years, 5 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Rishi Sunak Portrait Rishi Sunak
- Hansard - - - Excerpts

With the greatest respect, the hon. Gentleman is mistaken in his characterisation of the support provided and confusing two different things. He is absolutely right: the support is £8 a head. That is the national funding formula that is provided to all local authorities entering tier 3. That is the same as is provided in Lancashire and indeed, in the Liverpool city region, and that is the amount that he refers to, which is done on an equitable basis for all local authorities. The additional amounts he talks about were reached in negotiation with my right hon. Friend the Communities Secretary and representatives of the Government. That offer remains available to Greater Manchester, and that is why I hope they engage in these negotiations constructively.

Mel Stride Portrait Mel Stride (Central Devon) (Con) [V]
- Hansard - -

My right hon. Friend has done a great deal to support jobs in our country, but he will know that lockdowns destroy jobs and lead to increased mental illness and a smaller economy that for many years will be less able to look after our most vulnerable. Does he agree that the Government should come forward urgently with a comprehensive review of the impact of lockdowns, not just in terms of epidemiology and the effect on the NHS, important though that is, but in terms of the economy, businesses, jobs and the country’s social wellbeing?

Rishi Sunak Portrait Rishi Sunak
- Hansard - - - Excerpts

As ever, my right hon. Friend makes an excellent point. He is right about the damage to not only non-covid health outcomes but people’s jobs and livelihoods and the long-term damage that that will cause to all our health outcomes. With regard to projections, he will know that both the Office for Budget Responsibility and the International Monetary Fund project 3% scarring, which will mean our economy potentially being £70 billion to £80 billion smaller in the future than it otherwise would have been. As he rightly says, that will obviously have an impact on our ability to fund public services and protect people’s jobs and livelihoods.