Prospects for the UK Economy and Public Spending After COVID-19: new austerity or a new economy? [Audio]

Speaker(s): Stephanie Flanders, Professor Stephen Machin, Dr Gemma Tetlow | The UK government’s response to COVID-19 has seen sudden growth in public spending accompanied by a sharp fall in tax receipts. Public sector borrowing may exceed £300bn in 2020-21, with the UK’s national debt exceeding annual GDP for the first time for decades. What short-term stimuli might the Chancellor now employ to re-start growth? Can the government imaginably return to austerity policies? Will inequality have increased? Is this the time for a new approach to economic management? Can the economy go back to normal and grow if social distancing restrictions persist? Is the UK out of line with comparable countries? And what about Brexit? The panel will consider these issues and more. Stephanie Flanders (@MyStephanomics) has been Senior Executive Editor for Economics at Bloomberg News and head of Bloomberg Economics since October 2017. She was previously Chief Market Strategist for Europe at J P Morgan Asset Management in London (2013-17) and both BBC Economics Editor and BBC Newsnight’s Economics Editor (2002-13). Stephen Machin (@s_machin_) is Professor of Economics and Director of the Centre for Economic Performance at the London School of Economics. He is a Fellow of the British Academy, has been President of the European Association of Labour Economists, is a Fellow of the Society of Labor Economists and was an independent member of the UK Low Pay Commission from 2007-14. He has researched extensively in various areas of empirical economics, including current research interests in the areas of labour market inequality, social mobility, the economics of education and the economics of crime. Gemma Tetlow (@gemmatetlow) is Chief Economist at the Institute for Government. Between 2016 and 2018, Gemma was Economics Correspondent at the Financial Times, reporting on and analysing economic developments in the UK and globally. Before that, she led the Institute for Fiscal Studies’ work on public finances and pensions. She has a PhD in economics from University College London. Andrés Velasco (@AndresVelasco) is the Dean of the School of Public Policy at the London School of Economics and Political Science. This event is part of LSE's public event series - COVID-19: The Policy Response. COVID-19 represents an enormous challenge for the social sciences to help governments and non-governmental organisations respond to the economic and societal consequences of the pandemic. Part of LSE's response to this challenge is a series of online public events that will take place over the Summer Term. Why not visit the School of Public Policy COVID-19 Resource Centre. This event in the series has been organised by the Institute of Global Affairs and the School of Public Policy. The Institute of Global Affairs (@LSEIGA) aims to maximise the impact of LSE's leading expertise across the social sciences by shaping inclusive and locally-rooted responses to the most important and pressing global challenges. The School of Public Policy (@LSEPublicPolicy) is an international community where ideas and practice meet. Our approach creates professionals with the ability to analyse, understand and resolve the challenges of contemporary governance.