London Daily

Focus on the big picture.
Wednesday, Jun 24, 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
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
Department for Environment, Food and Rural Affairs Unveils £53 Million Investment in Farming Innovation
Foreign Secretary Announces Medical Evacuations and University Support for Palestinians in Gaza
Government-Commissioned Report Highlights Economic Exposure to Climate-Driven Fossil Fuel Price Shocks
Climate Change Committee Warns UK Is Off Track on Emissions Cuts and Calls for Faster Decarbonisation
Prime Minister Keir Starmer Calls for Deeper UK-EU Defence and Industrial Cooperation in Berlin Address
Met Office Issues Red Extreme Heat Warning as Temperatures Set to Surpass 37°C in England and Wales
Bank of England Holds Interest Rates at 3.75% as Inflation Outlook Remains Uncertain
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
UK Economy Sees Unexpected Rise in Business Investment in Second Quarter, ONS Data Shows
Scottish Government Unveils Multi-Billion Pound Investment Plan for Renewable Energy and Grid Expansion
UK and EU Agree Enhanced Defence Cooperation Pact Covering Intelligence and North Sea Security
Prime Minister Orders Independent Review of NHS Performance After Record Waiting Lists
Bank of England Holds Interest Rates at 5 Percent as Services Inflation Remains Persistent
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
×