Brexit and coronavirus. Economic impacts and policy response

Summary:

The government should restrict access to coronavirus support schemes to businesses affected by the pandemic, rather than those adjusting to Brexit changes.

There are already signs that the government is going to allow Covid schemes to be used to cushion Brexit disruption. This report says the chancellor should instead design an alternative package of support to help businesses cope with short-term Brexit disruption, or allow those businesses special access to the existing Covid-19 schemes on a case-by-case basis.

Failing to do so risks poor value for taxpayer money and longer-term economic damage from delaying necessary economic restructuring when the UK’s terms of trade with the EU change in 2021.

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