The Treasury Committee is launching a new inquiry into jobs,
growth, and productivity after coronavirus.
The Committee will examine how the Government can reduce and
mitigate economic scarring and job losses after the pandemic, how
much difference the Government can make to economic growth, and
what has caused the UK’s productivity growth to be persistently
weak.
It will also examine macroeconomic policy, looking at whether the
Bank of England’s inflation target is fit for purpose, if the
Monetary Policy Committee has effective tools to stimulate the
economy when interest rates are low, and whether a return of
inflation is a risk to the economic recovery.
The deadline for submitting written evidence is 17:00 on Monday
17 May. The first evidence sessions will take place before the
summer recess, with a report expected later this year.
Commenting on the launch of the inquiry, , Chair of the Treasury Committee, said:
“As the UK begins to emerge from the pandemic, jobs, growth and
productivity will be key priorities for the Treasury Committee.
“What role can the Government play in raising economic growth?
How can the Government reduce economic scarring effects from the
pandemic? Does the Government have a coherent strategy to promote
long-term productivity growth?
“These are some of the questions that we’ll seek to answer
throughout this inquiry, which will conclude with a series of
recommendations for the Government and associated public bodies.”
--Ends--
Notes to Editors
Terms of Reference
Jobs, growth, and productivity
- How much difference can government policy make to economic
growth?
- What are the causes of the gap in the UK’s level of
productivity compared to other advanced economies, and why has
productivity growth been persistently weak in the aftermath of
the 2007-09 financial crisis?
- How successful has the Government’s pandemic response been in
protecting jobs to date, and how can it help reduce and mitigate
the economic scarring effects of the pandemic going forward?
- Do economic statistics adequately capture growth in the
modern economy, and what lessons can be learned from the pandemic
about the measurement of economic activity?
- What policies are effective in helping people to reskill,
move between occupations and sectors and take advantage of new
opportunities? How could these be best implemented in the
aftermath of the pandemic, and as technological developments such
as artificial intelligence change the nature of work?
- Does the Government have the right mix of policies and a
coherent strategy to promote long-term productivity growth and
create new high-quality jobs?
- Is the Government doing enough to encourage corporate
investment?
- Is the “Plan for Growth” an adequate replacement for the
“Industrial Strategy”?
- Are we in a period characterised by long-term low economic
growth (secular stagnation), and if so, what are the implications
for Government economic policy?
- Is the UK well placed to take advantage of future
technological breakthroughs and translate them into economic
opportunities?
Macroeconomic policy
- What are the roles of monetary policy and fiscal policy in
stabilising the business cycle and promoting growth in the
post-pandemic economy?
- Does the inflation target remain fit-for-purpose, especially
in a world where interest rates may be ‘low for long’? Should the
Monetary Policy Committee (MPC) target anything else?
- Does the MPC have effective monetary policy tools to
stimulate the economy when interest rates are low?
- What evidence is there on the relationship between the scale
of the public debt and economic growth?
- Is a return of inflation a risk to the economic recovery?
- Can monetary and fiscal policy improve employment, growth
and/or productivity outcomes by ‘running the economy hot’?
