No toolkit to deal with Covid economic crisis, says Sunak

Rishi Sunak has said there was no “toolkit” to deal with the economic shock caused by the Covid pandemic.

The former Conservative prime minister, who was chancellor during the crisis, told an inquiry there was “not a playbook” to guide how to respond and deal with the economy being ground to a halt due to the lockdown.

“We were dealing with something no one had dealt with before,” he said.

Sunak added job losses as a result of people being told to stay at home were unavoidable, but said the government was “successful in preventing mass unemployment”.

The former PM was giving evidence to the public inquiry into the pandemic on Monday, answering questions on the policies he set out to support workers’ incomes and keep businesses afloat.

He said that at the outbreak of the crisis, there was an “enormous amount of uncertainty”, with policymakers and experts unsure of the scale and duration of the virus and how the population would respond to any measures imposed by the government.

“There was not a toolkit, there was not a playbook that you could pull of the shelf that said this is how you tend to deal with pandemics in the same way you somewhat have with other economic shocks or financial shocks,” he said.

Over the past three weeks, the inquiry has been delving into the economic response to the pandemic, hearing from former ministers, treasury officials and central bankers.

Sunak’s appearance on Monday was the second time he has taken the stand, after previously giving evidence in December 2023 when he was still prime minister.

He was appointed chancellor of Boris Johnson’s government on 13 February, and was preparing to present a Budget before the pandemic hit UK shores and the country was put into lockdown a month later.

Sunak told the inquiry that one of his priorities was to prevent mass unemployment and said “speed was paramount” in the government’s response.

He said there was an “acknowledgement” in the Treasury that they were not going to “get everything right straight away”.

“We could not let perfect be the enemy of the good,” he said. “We had to get things out fast.”

Sunak said it was not possible “to save every person’s job”, but said that “as it turned out, the impact on living standards particularly for the most vulnerable in society… were stronger that I would have perhaps anticipated going into this and I’m very proud of that”.

The coronavirus job retention scheme, known as furlough, was announced by Sunak in March 2020.

At his previous appearance in front of the inquiry, Sunak defended his Eat Out to Help Out policy, which was one of the government’s policy measures aimed to support businesses reopening after the first lockdown.