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Sunak Defends Furlough and Tax Rises, Cites Early Advice on Timing at Covid Inquiry

The hearing examines the Treasury’s pandemic response following findings that delayed decisions contributed to thousands of avoidable deaths.

Overview

  • Rishi Sunak said the government prevented mass unemployment, highlighting that furlough covered about 11.7 million jobs at a cost of roughly £70bn.
  • He told the inquiry ministers were initially urged by scientists not to act "too early" on restrictions due to worries over public acceptance, before a full lockdown followed days later.
  • Recounting March 2020 turmoil, he said he feared for the UK’s ability to fund itself and set up a Bank of England ‘ways and means’ backstop that was not used as QE was expanded.
  • He argued tax measures, including a 2021 freeze to income tax thresholds, were the political price of pandemic support to repair the public finances.
  • He continued to defend Eat Out to Help Out despite research reported in coverage linking the scheme to an 8%–17% rise in infections.