Britain’s economy is on track to suffer more than £700bn of lost output caused by Covid-19, made worse by the government’s mishandling of the health emergency and Brexit, one of the UK’s leading economics thinktanks has warned.
The National Institute of Economic and Social Research (NIESR) said the UK was facing worse permanent damage than other rich nations due to a “poor Covid-19 response” from Boris Johnson’s government.
Despite an improving growth outlook thanks to rapid progress with the Covid-19 vaccination programme, it said the scale of the UK’s economic collapse last year – the worst annual performance for 300 years – meant Britain was further behind other major economies such as the US and Germany.
The UK’s oldest independent economic research institute said the level of GDP was on track to be almost 4% lower in 2025 than it would have been without the pandemic. Equivalent to £1,350 per person a year, it said the cumulative loss of economic output would be worth £727bn over the five-year period.
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