Boris Johnson under pressure as economic damage of lockdown unfolds

UK Prime Minister Boris Johnson is coming under pressure from MPs in his own party to set out how he will lift the nationwide coronavirus lockdown amid growing concern about the economic damage it is inflicting.

With Johnson yet to return to work after suffering from the virus, ministers have been reluctant to discuss when they will relax the restrictions because they fear a public debate would encourage people to break the rules. Former Tory leader Iain Duncan Smith told the Times the government shouldn’t treat the public like children, while Scottish First Minister Nicola Sturgeon on Thursday called for a “grown-up” conversation with voters.

“The way that people are framing it, as a question of life vs business, isn’t true; it’s life now vs life in future,” Bob Seely, a Conservative who represents the Isle of Wight, said in an interview. “There is a horrible balance. All of us need to be having a conversation.”

While the lockdown has helped to slow the spread of the virus, the economic costs of forcing businesses to close are growing fast. The outlook for jobs is “horrendous” and the contraction could become the worst in several centuries, current and former Bank of England policymakers warned on Thursday.

About 27% of the UK workforce had been furloughed as of April 5, and roughly a quarter of businesses had temporarily ceased trading, according the Office for National Statistics. Meanwhile output contracted at the fastest pace in at least 20 years in April, according to a closely watched Purchasing Managers Index.

‘Dreadful collapse’

“When you look at the dreadful collapse of the PMI figures, it does indicate the appalling moral maze the cabinet and the government are going to have to negotiate their way through,” Conservative MP Steve Baker said. “There are going to be no easy answers. If the economy isn’t opened up soon, the impact will only get worse and longer lasting.”

The government has urged people to work from home, if they can, and discouraged travel for all but essential workers. It has also taken the unprecedented step of paying a portion of workers’ wages to avert a wave of mass firings.

However, a few companies have decided to get back to business. Taylor Wimpey, one of the UK’s biggest home builders, said on Wednesday it will start work on its construction sites on April 27, while luxury vehicle maker Aston Martin will restart production in May.

Some Conservatives urged the government to look at the example from other countries, such as Germany, Denmark, Switzerland and Austria, which have opened smaller shops and some schools.

‘Quite helpful’

“What I think we want to see is the economy being reopened as far as possible, as soon as possible, without risking an overwhelming epidemic,” Tory MP Peter Bone said in an interview. “We are seeing some countries around the world managing to do this because they are further on in the virus than we are. That’s quite helpful for us because if they are opening small shops, and it’s not having an adverse effect, then the logic is we can do that.”

Other Conservatives were more measured in their attitude to the lockdown. Tory MP Mark Garnier said he was not so much concerned about the length of the lockdown, but about how some, such as agency workers and the self-employed, are not getting adequate financial support.

“The government is being asked to exercise the judgment of Solomon,” Tory MP Mark Francois said. “If they lift the restrictions too early and there is a second outbreak, the public will never forgive them; if they run them too long, there won’t be much of an economy left to rescue.”

Bloomberg