Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the ongoing costs associated with measures announced to assist businesses and individuals during the COVID-19 pandemic.

The Government has announced unprecedented support for public services, business and workers to protect against the current economic emergency. These steps are necessary to ensure that the country, economy and public finances are stronger in the longer-term.

Precise costs will depend on a range of factors including the impact of the crisis on the wider economy and the level of take up for each scheme.

The Office for Budget Responsibility (OBR) have published a coronavirus reference scenario on 14^th April which provides insight into the potential fiscal costs under a particular set of economic circumstances and have updated their policy costings table on 30^th April. In their scenario, the OBR estimate the direct cost of Government decisions to be £103.7 billion in 2020/21. The OBR note that the measures taken should help limit the long-term damage to the economy and public finances – and the costs of inaction would have been higher.

A full assessment of the economic and fiscal position will be made at the next Budget alongside an updated OBR forecast.