A SUSTAINED period of lockdown could incite public rebellion, a former governor of the Bank of England has warned.
Mervyn King, who was head of the bank during the 2008 financial crash, has warned that an indefinite lockdown amid the Covid-19 pandemic was unrealistic, and said ministers must look for a way out.
Speaking during an online conference hosted by thinktank Policy Exchange, the peer said: "The idea that you can have a lockdown that goes on for months on end is unrealistic. The government needs an exit strategy, which may be gradual and initially involve those who have had the virus and are able to travel and go back to work. If we have a lockdown for too long there will be a rebellion against it.”
Lord King also said the lockdown could be "potentially damaging" to the mental health and general wellbeing of UK citizens, in particular younger people.
He said: " There are people struggling to get out to buy food and who are stuck on their own. Young people are having their university education and school exams cancelled, and that it is going to have a significant impact of their wellbeing and future careers.”
The peer was joined during the virtual session by former chancellor Lord Alistair Darling, former permanent secretary to the Treasury Lord Nick Macpherson and Dr Gerard Lyons, Boris Johnson's former economics adviser as Mayor of London.
Mr Lyons praised the Government's approach to dealing with the financial impact of the virus but warned it was "not simple enough".
He said: "The Chancellor said the response would be coherent, coordinated and comprehensive, but I fear it was possibly too complex.
"I think there were too many thresholds and too many delays, but do think overall he's done a good job."
Meanwhile, Lord Macpherson suggested the crisis could be used as an opportunity for new financial policies, such as a potential "health tax".
Lord Darling suggested the Government could plan for a temporary reduction in VAT in a bid to help stimulate spending after the pandemic subsides.
Last week, financial analysts warned that the economic shock caused by coronavirus is set to plunge the UK into a steeper recession than that of the financial crisis.
Economists are predicting double-digit declines in gross domestic product (GDP) that would dwarf the 6% decline seen between 2008-2009.
King said it was pointless to speculate on the extent of the health and economic damage caused by the crisis, but emphasised that there would be significant costs in terms of failed businesses, lost jobs and increased unhappiness.
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