Ex-chancellor Philip Hammond warns business must be prepared for coronavirus lockdown exit plan
Former chancellor Philip Hammond has warned that the government must make sure businesses are well prepared for a coronavirus lockdown exit plan.
Hammond said it is “vital that business is ready for the green light” when restrictions are lifted in order to mitigate the risk of corporate collapses and job losses.
“We don’t know whether there’s going to be a vaccine or a cure. We don’t know whether we’re going to have to reopen with the virus still in place,” Hammond said, during an online Chatham House discussion.
“But how we manage that gradual reopening and how prepared business is for it will determine how quickly we can respond. So we need that route map.”
He added: “This is a £2 trillion economy. You can’t spin it up overnight from nothing.”
Hammond also said that the public will begin to focus on the economy and what it means for their jobs and living standards once the immediate health crisis is under control.
“And they will expect their governments to be ready to respond to that phase of the crisis as effectively as they responded to the acute health phase of the crisis,” he said.
The government has so far refused to outline any details of its coronavirus lockdown exit plan, although the cabinet is reportedly divided over how soon restrictions can be lifted.
Various media reports over the weekend said chancellor Rishi Sunak and Cabinet Office minister Michael Gove were pushing for the lockdown to be eased to avoid long term economic damage, while health secretary Matt Hancock favoured a longer period.