How bad will Lockdown 2 be for the economy?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 7 November 2020

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

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Summary

When lockdown arrived in March it sunk the UK economy.

The message was clear: Stay home.

And people did just that; there was a dramatic shift to either working from home or shutting down businesses entirely.

For a couple of weeks pretty much the only place you could go was the supermarket, followed a little while later by the opportunity to head to B&Q to queue for an hour and try to do a click and collect.

Now a second lockdown has arrived for England and the message is once again stay home, but things are very different this time: considerably more remains open.

As England’s lockdown arrived, Wales and Northern Ireland were already in some form of lockdown and Scotland is running its own tight tiers system.

Yet, while rules vary across the nations, more businesses remain open, Britain has got used to working from home, and industries that can’t do that are permitted to keep going.

So, what happens now to the economy? How bad will the hit be? And is it just the hospitality sector and leisure sector that will be hammered this time round?

On this week’s podcast, Georgie Frost, Lee Boyce and Simon Lambert look at the economic effects of Lockdown 2 and how things could be better or worse.

Meanwhile, the Bank of England responded to the lockdown by keep rates in positive territory, but pumping another £150billion into the financial system through quantitative easing.

More QE has been done since March that in all the years after the financial crisis: what does this mean for the economy and normal people?

Also on this week’s podcast: is it time to call the end of the property mini-boom, why are some of the self-employed still being left out while furlough is extended – and should Simon bother to try and get his Ryanair flight money back in vouchers?

Transcript

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0:00.0	Welcome to This Is Money Podcast. I'm Georgie Frost and alongside me and editor Simon Lambert today
0:05.2	is Assistant Editor Lee Boyce. And this week, England is back in lockdown. The Chancellor's
0:10.7	shaking the magic money tree, the Bank of England and prints more of it. US stocks are up. Donald
0:15.1	Trump is down, but not yet out. It's been a quiet week in all, actually. We have a comprehensive
0:20.7	guide to surviving lockdown
0:22.2	mark two. Take a look at what will happen to the property market after the government decided to keep
0:27.5	the doors open this time round. And should you even bother attempting to get your money back from Ryanair?
0:33.9	Don't forget. With all the latest breaking money news, just go to this ismoney.com.
0:38.5	UK or download the app.
0:41.4	But first, what are we?
0:42.4	We'll start at this side of the pond, shall we?
0:44.9	And here we are again.
0:46.4	Pups, restaurants, gyms, all closed in England.
0:48.3	Toilet paper flying from the shelves.
0:51.4	But lockdown, Mark 2, has a different flavour this time, perhaps. The property market
0:55.8	will stay open, as will construction, schools and uni's, dentists, optometrists and cost
1:00.4	coffee. Other coffee chains are available. Finance journalists have been rewriting, updating all their
1:05.8	articles about the chance of financial support measures, as they do keep changing. One thing that will not change is that this
1:12.2	is not good news for the economy. So let's run through some of that now. But firstly, welcome,
1:16.9	Lee, to you first. How's lockdown Mark 2, lockdown 2.0, whatever we want to call it nowadays.
1:22.3	How's it treating you? Have you signed up to any courses, changes to your working pattern, life generally?
1:26.9	Or are you just sort of bit
	...

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