An updated statement on the Chancellor's updated statement

The Adam Smith Institute recognises the need for new financial measures to support areas put under harsher local restrictions.

Following Chancellor Rishi Sunak’s updated statement today, Matthew Lesh, Head of Research at the Adam Smith Institute, said:

“The failure of the Government’s test, trace, and isolate regime has led to renewed restrictions. If the Government is going to restrict the activities of private businesses during a pandemic to stop the spread of a virus, it is right to provide financial support.

“This is, of course, hugely costly and will add mountains to the debt. Nevertheless, it is a one-off expense, at a time of low interest rates, that should have a  longer-term benefit of fewer firms closing, securing the basic relationships in the economy and protecting jobs.

“At some point we will need to allow firms to fail, people to start new ventures, capital to reallocate, and new skills to be built and jobs created. The Government cannot and should not save every job at any time. But Tier 2/3 restrictions are not the time for creative destruction.”

Notes to editors: 

For further comments or to arrange an interview, contact Matt Kilcoyne: matt@adamsmith.org | 07904 099599. 

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.