Covid-19: Economic Impact of Lockdowns Debate

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Department: HM Treasury

Covid-19: Economic Impact of Lockdowns

Patricia Gibson Excerpts
Tuesday 29th November 2022

(1 year, 5 months ago)

Westminster Hall
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Esther McVey Portrait Esther McVey
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I welcome my hon. Friend to this debate today. He might be one of those who voted for continuous lockdowns, but it is important that we are all together in a sense of open debate and conversation. The point he raised is correct. If subsequently, after the Government had intervened to close things down, there were effects on otherwise viable businesses, the Government had to step in and support them. Indeed, the Government have given unprecedented support, but I wish we could have had discussions beforehand so that when people voted for lockdown, they knew what would befall them. At the time, too many colleagues did not want to do that.

Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
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May I ask the hon. Lady a question about a comment she made a few moments ago? She talked about populism and said that was a factor in deciding to implement lockdowns. I am confused by that because lockdowns were, at best, tolerated; they could never be described as appealing to populism.

Esther McVey Portrait Esther McVey
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I was quoting Lord Sumption, the former Supreme Court judge, who was talking about the way governments were led at that time—those were his words. What we need to take from them is the question of why those decisions were not questioned or challenged by Members of Parliament. Why were those decisions not challenged? If we look at the record of the House, the decision appears popular because MPs voted for it pretty much unanimously, when there should have been greater debate.

--- Later in debate ---
Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
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I am pleased to participate in this debate, and I thank the right hon. Member for Tatton (Esther McVey) for bringing it forward. We have heard much today about the economic consequences of lockdown and the magnitude of the recession it caused, which was unprecedented in modern times. GDP declined by 9.7% in 2020—the steepest drop since consistent records began in 1948 and equal to the decline in 1921, according to unofficial estimates. The Scottish economy contracted by 19.4% between April and June 2020; that is the biggest fall in quarterly GDP on record.

We understood—how could we not?—that lockdown would of course bring significant economic cost. How could anybody not have anticipated that consequence? I have heard some Members talk about following the science; I am about as far from being a scientist as it is possible to be, but studies have shown that about 20,000 lives could have been saved if the first lockdown had been implemented a week earlier, according to research published by Imperial College London. I do not have the scientific expertise to challenge that, but when experts speak it is incumbent on us to listen. The research, incidentally, was published in the Science Translational Medicine journal, and also found that national lockdown was the only effective measure that consistently brought down the R number.

We must remember that we are speaking from the comfort of having emerged from covid, for the most part, despite the damage that it has caused on a number of levels. A Government’s first duty must be to ensure the safety of those they seek to serve. Surely we cannot forget the uncertainty during those dark days, and the need to do all we could to reduce our social contact, save lives and restrict the potential for infection. Of course there was a cost to that—nobody would pretend otherwise. How could we imagine that there would not be?

Chris Green Portrait Chris Green
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Will the hon. Member give way?

Patricia Gibson Portrait Patricia Gibson
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In a moment.

These were difficult decisions that were not made lightly. I thank the lord every day that I did not have to take the responsibility to make those decisions, which were so far reaching in their consequences. They had to be made at pace and err on the side of caution, because public safety had to come first. It is easy now to sit, with some distance behind us from those days, and commentate and look at things that could have been done better. Of course mistakes would have been made, and of course things may have been done differently, but in that context and acting at speed, we—I say “we” in a societal sense—had to put public safety first.

Consider for a moment the leaders across the UK who were responsible for making those decisions, relying on public health experts as they were. As the hon. Member for Blackley and Broughton (Graham Stringer) said, politicians are not often particularly scientific or trained in scientific methods. The leaders were relying on public health experts and understanding the weight of their responsibility—that, when it comes to public health, the buck stops with them. We can make criticisms about the decisions that were taken, and talk about possible wrong turns and the damage done; all those things are true, but the reality is that the priority had to be to keep the infection rate down and save lives.

I agree with elements of what the right hon. Member for East Antrim (Sammy Wilson) said. Every single day that I was required to be in Parliament—Monday to Thursday, which is the norm—I came down here during lockdown. The reason I came was not because I felt invulnerable to infection. I came down here—it is quite a long journey, as Members can imagine—because postal workers, nurses and cleaners in my constituency had to go to their jobs. In that context, I felt unable and unwilling not to go and do my job. That is really important.

I also speak as someone whose mother-in-law was in a home with dementia. Again, I am not a scientist or doctor, but it is pretty clear that although dementia was cited as the cause of death on her death certificate, lockdown reduced her to a catatonic state because of the lack of stimulation. That does not mean that I think lockdown should not have happened, because the reality is that we cannot look at individual relatives or individual circumstances. We have to look at society in the round and make the best public health decisions, based on the scientific advice given across the UK and Europe, in order to protect the people we seek to represent.

Chris Green Portrait Chris Green
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The hon. Lady is making a powerful argument. One of the points that has been raised, which is part of the broader debate, is that we saw what was happening in China and Italy. People in Britain were already voluntarily choosing to restrict their activities and restrict going into work—

Sheryll Murray Portrait Mrs Sheryll Murray (in the Chair)
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Order. I gently remind both speakers that we are talking about the economic impact of covid lockdowns. I also remind the hon. Lady that the shadow Minister and Minister have yet to speak, and I would like to allow at least a couple of minutes for the right hon. Member for Tatton (Esther McVey) to sum up. Please bear that in mind.

Patricia Gibson Portrait Patricia Gibson
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Thank you, Mrs Murray; I will curtail my comments. The hon. Member for Bolton West (Chris Green) has made his point, but we need to move on in the light of the comments from the Chair.

I do not think the hon. Gentleman used the name of the country, but Sweden took a different approach to lockdown. However, the House of Commons Library has done some work on the issue and has pointed out that, although there was reduced economic activity as a result of lockdown, as we would all expect, it is likely that had lockdown not been implemented—a number of Members have been critical of lockdown—people would probably have reduced their social contacts voluntarily anyway, as they did in Sweden.

We will never to what extent that may or may not have happened, and we cannot know how the virus would have evolved had we not had lockdown. We could have found ourselves in a different situation all together. People can say, “At the time, I knew this and I knew that,” but the reality is that we do not know what the outcome would have been if the Governments across the UK had taken an entirely different approach. The impact could have been even greater than that which we suffered.

Everybody understands the effect of lockdown on education, on social contact and—it has not been mentioned—on mental health, but we were faced with an unprecedented situation in which we had to act at speed and try to take the pressure off the NHS. The right hon. Member for East Antrim said that people who supported lockdown want to forget it and act like it did not happen, but we cannot forget the context in which we were living. It was a time of great uncertainty, great fear and lots of unknowables, and we had to respond. I know that a number of Members are attacking the Government, and it is not often that I defend them, but this is not about the Government. This is about public safety and public health.

Businesses have struggled through lockdown, which was considered necessary at the time, and many have managed to survive and cling on to their livelihoods. They are now going through another wave of unprecedented difficulties. If the Government do not offer additional long-term support to businesses on energy costs, the initial money they invested to keep businesses afloat will have been wasted, because the very idea of that investment was to save businesses and jobs—that is what the investment was for. If the energy support is not sufficient, those jobs will disappear anyway, so the initial funding during covid will have been to no purpose. I want the Minister to think about that and comment on it when summing up.