London Daily

Focus on the big picture.
Wednesday, Sep 03, 2025

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
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
×