London Daily

Focus on the big picture.
Sunday, Mar 15, 2026

Treasury wants us to ‘live with Covid’ – but what does that mean?

Treasury wants us to ‘live with Covid’ – but what does that mean?

Analysis: Businesses and unions have doubts about big-bang approach to reopening economy
Sajid Javid’s return from the political wilderness was sudden and unexpected, but as Matt Hancock’s replacement he quickly made his mark. The new health secretary has made his opinion clear that England has to learn to live with Covid-19.

Before his resignation in early 2020, Javid was Rishi Sunak’s boss at the Treasury, and supports his successor’s desire to remove the restrictions that are making life tougher for key sectors of the economy, such as hospitality and night clubs. Two members of the “quad” – the inner circle that makes the key decisions on how the pandemic should be managed in England – are now either current or former chancellors of the exchequer.

In truth, Javid’s arrival at health has made little difference to government plans for a bonfire of English restrictions on 19 July. For months, the Treasury has been pointing out that the success of vaccines in reducing hospitalisations and deaths has meant the needs of the economy should be given a higher priority.

Gerard Lyons, the former chief economic adviser to Boris Johnson when he was mayor of London, said: “The perception may be that with Hancock at health there would be more resistance to opening up. But even with Hancock there, the data would have been pushing in favour of unlocking.

“Javid has no baggage and is able to take a fresh look at things. The data has given him the ability to support unlocking.”

The Treasury’s case for ending restrictions is simple: despite the pick up in activity in recent months, the economy is still running well below its pre-crisis level and the financial cost is mounting by the day. Wage subsidies under the furlough scheme end in September, along with the stamp duty holiday and the reduced VAT rate for hospitality, so Sunak is keen to remove impediments to growth as soon as possible.

The chancellor backed the lockdown of the economy in the first few months of this year on the grounds that the NHS was in danger of being overwhelmed, but thinks that is no longer the case. The number of infections rose by 70% across the UK last week but the number of daily deaths averaged 15 in the past week, compared with well over 1,000 a day at the peak in January.

The idea of “learning to live with Covid” is not that contentious. The scientific community accepts that the benefits of restrictions in terms of limiting the spread of the virus have to be set against the costs, including the non-pandemic health costs, as does the Labour party, the TUC and business organisations.

But all have their doubts about a big-bang approach. The scientists fear a new variant of the virus may prove vaccine-resistant. The TUC and the CBI are both pushing for guidance on workplace safety and who will be legally responsible for staff who become infected. Labour thinks it is important to avoid a repeat of last year’s aborted reopening. As the opposition notes, we have been here before.
Newsletter

Related Articles

0:00
0:00
Close
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
×