Former Bank of England Governor Mervyn King warns prolonged coronavirus lockout will spark "rebellion" among Britons if applied for "endless months"
- Lord Mervyn King says it is "unrealistic" to think the lockdown could last for months
- Warns Lockout Could Be "Potentially Harmful" To Public Mental Health
- Former Boris Johnson advisor says government response "not simple enough"
- Crisis Could Be Used To Impose "Health Tax", Says Former Treasury Secretary
- Coronavirus symptoms: what are they and should you see a doctor?
A prolonged coronavirus lockup could end in "rebellion," warned a former Governor of the Bank of England.
Speaking at an online roundtable hosted by Policy Exchange, Lord Mervyn King, who served as governor during the 2008 financial crisis, said it was "unrealistic" to think that foreclosure could happen. continue "endless months and months".
Instead, the economist called for a gradual exit strategy to protect the economy and the well-being of citizens.
Britain is in the second week of the coronavirus shutdown on Sunday Dr Jenny Harries of the country warned that daily life would not return to normal for six months.
Lord King, Governor of the Bank of England during the 2008 financial crisis, said it was "unrealistic" to think the foreclosure could continue "for months and months"
On Wednesday, a security officer checks the paperwork at a test station behind the wheel of the Covid-19 at Wembley. Britain is in the second week of a nationwide lockdown on Sunday, the country heard life could not return to normal for six months
Lord King was joined at the webinar round table by former Chancellor Lord Alistair Darling, former Permanent Secretary to the Treasury Lord Nick Macpherson and Dr. Gerard Lyons, former economic adviser to Boris Johnson as Mayor of London.
The government has announced a series of measures in recent weeks to support workers and businesses amid a foreclosure caused by the spread of the coronavirus.
The Bank of England has also announced two interest rate cuts in recent weeks to lessen the impact of the pandemic.
However, Lord King suggested that the lock-up could be "potentially harmful" to the well-being and mental health of citizens, emphasizing in particular the impact on young people, while urging the Government to reflect on its "strategy for exit ”for when the lockout would take place.
Gerard Lyons, pictured at Manchester City Hall in 2017, praised the government's approach to dealing with the financial impact of the virus, but warned that it was "not simple enough"
Former Chancellor Lord Alistair Darling has suggested that the government could plan a temporary reduction in VAT to help encourage spending once the pandemic subsides.
Speaking at Wednesday's online roundtable, Lord Macpherson suggested that the crisis could be used to impose a "health tax"
Meanwhile, Lyons praised the government's approach to the financial impact of the virus, but warned that it was "not simple enough."
He said: "The Chancellor said the response would be coherent, coordinated and comprehensive, but I fear it may be too complex.
"I think there were too many thresholds and too many delays, but I think overall he did a good job. "
Meanwhile, Lord Macpherson suggested that the crisis could be used as an opportunity for new financial policies, such as a possible "health tax".
Lord Darling suggested that the government could provide for a temporary reduction in VAT in order to stimulate spending after the end of the pandemic.
Last week, financial analysts warned that the economic shock caused by the coronavirus would plunge the UK into a deeper recession than that of the financial crisis.
Economists predict a double-digit drop in gross domestic product (GDP) that would overshadow the 6% drop observed between 2008-2009.