Economic hit from pandemic ‘NOT part of contingency planning’

Economic fallout from a pandemic was NOT modelled as part of contingency planning, admit civil service chiefs

  • Senior civil servants gave evidence to MPs on pandemic planning yesterday 
  • Revealed economic consequences of pandemic not part of contingency plans 
  • The chair of the Commons watchdog said the admission was ‘gobsmacking’ 
  • Here’s how to help people impacted by Covid-19

MPs have voiced shock that no modelling was done on the economic impact of a pandemic.

The omission emerged as Whitehall mandarins were quizzed about the Government’s readiness and response regarding the outbreak of coronavirus. 

The Public Accounts Committee heard from Cabinet Office permanent secretary Alex Chisholm about a 2016 exercise – Cygnus – looking at the public health response to a possible outbreak.

Thousands of firms are now struggling to stay afloat after the government was forced to impose lockdown to combat coronavirus.

Meanwhile, ministers face borrowing £300billion this year as they prop up more than nine-million jobs through the huge furlough bailout alone.

The Public Accounts Committee heard from Cabinet Office permanent secretary Alex Chisholm about a 2016 exercise – Cygnus – looking at the public health response to a possible outbreak

The Bank of England expects GDP to plummet by a third this quarter, in the worst recession for 300 years

The Bank of England expects GDP to plummet by a third this quarter, in the worst recession for 300 years

The Bank of England expects GDP to plummet by a third this quarter, in the worst recession for 300 years. 

During the hearing yesterday, PAC chair Meg Hillier said she was ‘gobsmacked’ at the lack of contingency planning for the economic impact of a pandemic like Covid-19.

Labour MP Ms Hillier said: ‘We were very surprised – gobsmacked, wouldn’t be too small a word to use – to say that there hadn’t been a proper economic planning, contingency planning, for this coronavirus.’

Mr Chisholm said: ‘The 2016 exercise was between the Cabinet Office and the Department of Health and Social Care.

‘I am not aware that that led to any direct action on the part of the economic authorities.’

Tory PAC member James Wild said: ‘A big exercise in 2016 of a potential pandemic, global health crisis, but there was no work done off the back of that to prepare our economic response?’

Mr Chisholm replied: ‘I am not aware of any direct actions that were taken on the economic side.’

Ms Hillier said the situation was ‘extraordinary’.

PAC chair Meg Hillier said she was 'gobsmacked' at the lack of contingency planning for the economic impact of a pandemic like Covid-19

PAC chair Meg Hillier said she was ‘gobsmacked’ at the lack of contingency planning for the economic impact of a pandemic like Covid-19