Assess The Changing Role Of Government In The Economy During The Recent Pandemic Assignment Sample

Assess The Changing Role Of Government In The Economy During The Recent Pandemic

Introduction - Assess The Changing Role Of Government In The Economy During The Recent Pandemic

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n the Covid pandemic, the whole world has changed their perspective towards their life and surroundings. The health system, economic, political pillars of a country was destroying that time very critically. Whether the government would not take any initiative to stand the perspectives of the country, it would be very difficult for the citizens of the country to stand again and maintain a healthy lifestyle. In this assignment the government role and along with their changing management perspective the economical association of the country could be developed. It is the economy that helps to standardize a developed or a developing country. Hence, the larger role of government is assessed here with the help of economic cost and measurement of that UK.

Role of larger Government during Pandemic

There are a huge number of initiatives taken by the UK government for managing the spread of Covid as well as its effect on the economical constraints. The UK government launched Pandemic Preparedness Partnership (PPP) and that will help to prevent the future pandemic or every upcoming disease. This process is also associated with the vaccine and its supply management. As per the UK government, the pandemic shook the economy very conveniently and it's time for unity to fight against the Covid. £16 billion was invested by the UK government to manage the PPP (Gov. UK, 2021). The main concern of PPP is to develop the vaccine for the best possible management of the Covid pandemic and hence PPP consists of efficient life science companies and vaccine developer’s .This new global partnership initiated by the UK government is made to save people from further diseases. This initiatives is also observe in several NGO (Ashraf, 2020).

The Covid management that is shown by the UK government is very unique because they divided the role for pandemic management among local, regional and national partners (Pichler et al. 2020). This process also maintains proper framework management. This framework is named autumn and winter plan, 2021. This framework is consist of

• Basic role and responsibilities of the authority for preventing the outbreak of Covid with the help of incident response and decision-making structure management (Pierce et al, 2020)
• Observation of Covid pandemic and its related core component for future references
• Local outbreak management plans (LOMPs) is the basic concern of this framework and for UK government they can manage the vivid affected people with the help of intervention, isolation, guidance, social care, and identification of those affected people (uk, 2021)
• Trace, test, and the basic self isolation strategy which is maintained by the UK government which will help them to limit the Covid transmission.

In terms of economic imbalance management, the UK government is separated from the European Union and adopted the Brexit law. Moreover, the Corona virus highly interrupts the business management of that country and additionally, lockdown emphasises the loan scheme and its high interest rate (Cairney, 2021). Every county is trying to manage its economical instability in every possible way and the UK government initiatives are no exception. During the 1st lockdown of the UK, the historical decline of GDP was observed (Leach et al. 2021). The economy of the UK is affected in different sectors to various degrees. Various sectors are scared of permanent economic damage and future deficit during this time. Hence, the Government has to take some policy or framework to mitigate the economical issues during the pandemic.

Evaluation of Changing Role of UK Government

There was a point in time where a huge level of Covid spread affected the economy of whole Europe and at this point of time if the government did not take any further initiatives then it would be the worst situation and economic disability of the century. Covid emphasizes the UK government borrowing £303bn and it is stated as the peacetime record for the UK government. They take this during the crisis of the first financial year. The basic national output that is taken by the UK government is 14.5% and it is the highest from 1946 till now (Guardian, 2021). Not only the economy but the public finance was also impacted due to the pandemic and its lockdown effect. For a perfect decision-making aspect, the UK government tried to invent a forum, where the public can easily be aware of not only the economy, society, and also health aspects.

All types of Economical data are included in the office of National Statistics (ONS) and hence this becomes easier to evaluate and forecast by Budget Responsibility (OBR) and all types of economical data are easy to assassinate for the UK government to develop the economic instability. There are several factors of Covid spread which further associate the UK government for managing the economy and its restriction or impacts

• Virus path and effectiveness and compliances over the covid spread in four states of UK
• Restriction and its proportion of changes over several times during the lockdown (Wells et al. 2020)
• Consumers and the business restrict behavioural management along with investment and consumption measurement.
• Global Covid approach and its significant restriction
• Community testing and different vaccination and their effectiveness

On the other hand, it is required to knowledgeable the virus and its path & effect on the economy. This process is adopted by the UK government and the restriction is put by the government and its development is initiated by a respected administration to mitigate the impact of Covid over the economy. ONS helps to measure the GDP and it observes that in March lockdown it is low and it picks up in May. In September it was 8.2% lower than in September than February (Commonslibrary.parliament.uk, 2021). The labour market of the UK is significantly facing the consequences of the Covid pandemic. Covid pandemic shows that health is wealth, where hospital beds are over-occupied by the Covid patients, lack of oxygen concentrator, their thinking about economical perspective is a luxury. Still, the UK government and their initiative for resuming the stability of the health and economical sector are very relevant. Moreover, any measurement is not sufficient for economic growth management even after having restrictions and many people do not even maintain the restriction and the consequences are affected over the UK economy (Tisdell, 2020). Hence it is recommended to balance the economical growth with restriction measurement.

Cost and benefits of economy

The UK Government takes the best possible policy measures for the development of the UK economy. £303bn is borrowed by the UK government and the rate is highest compared to previous years. This borrowing is only focused on the betterment of the economy. In August they borrowed £36bn to manage the National debt and it is occurred due to the economic fallout of public finance in the Covid pandemic. To combat the Covid pandemic and its associated economic misbalance, the UK government and their accumulated borrowing are almost £174bn and it is the highest level of entity till the establishment of the National Statistical Office in 1993 and reflects the highest level of the financial crisis (Guardian, 2021). The gap between Income and Government spending is estimated by Budget responsibility forecasting management. A huge number of people lost their jobs during this time and this process also emphasises the economical instability of the country. The hospital sector and its tax management are helping to emphasize the economy this time and it is also £3.7bn less than 2019, August. In this time the UK government had initiated various job schemes (Guardian, 2021). This borrowing perspective further helps the UK government to recover the government spending and tax receipts. A multibillion-pound spending package was invented by the UK government to boost the economy after the critical effect of the Covid pandemic.

The significant benefits of these burrows that are initiated by the UK government are huge business growth and a high business rate for the economy. Initially, debt helped to increase the production or National income of any country and it was exactly required of the UK government after the huge effect of Covid restriction (Susskind, and Vines, 2020). Tax collection is good for encouraging economic advancement, but somehow it's a deficit from a budget perspective. That is why borrowing is required to mitigate the budget deficit issues. The private sector and its investment capability can easily control the government borrowing of any country. Covid pandemic further pushed the UK government to borrow the debt to rectify the economical complacency of the UK. This cost management by the UK government is significant because it is the highest from WW2 and it is excluding with public sector bank (Daly, Sutin, and Robinson, 2020). Hence, the mitigation process that is taken by UK government is truly beneficial.

Conclusion

This assignment is based on the initiative which was taken by the UK government to deal with economical complacency during the pandemic situation. The role of the UK government is critically assessed here for the future development of the country in this critical time the UK government takes the best possible opportunity to develop the country's economy. Borrowing debt is the best mitigation process to boost the economy and that is exactly taken by the authorities and also to try to overcome the Covid restriction. The borrowing was the highest borrowing from the world war-like crisis. Cost and benefits are suggested hereafter the implementation of borrowing in the economy of the UK. The role of the UK government before the pandemic and after the pandemic is a matter of concern of this assignment which is critically evaluated with the help of significant economical measurement.

 References

Ashraf, B.N., 2020. Economic impact of government interventions during the COVID-19 pandemic: International evidence from financial markets. Journal of behavioral and experimental finance, 27, p.100371.

BBC, 2021. Covid costs push government borrowing to highest since WW2 [Online]. Available at: https://www.bbc.com/news/business-56856195. [Access on 5 January, 2021]

Cairney, P., 2021. The UK Government’s COVID-19 policy: Assessing evidence-informed policy analysis in real time. British Politics, 16(1), pp.90-116.

Commonslibrary.parliament.uk, 2021. Corona virus: Economic impact . [Online]. Available at: https://commonslibrary.parliament.uk/research-briefings/cbp-8866/. [Access on 5 January, 2021]

Daly, M., Sutin, A.R. and Robinson, E., 2020. Longitudinal changes in mental health and the COVID-19 pandemic: Evidence from the UK Household Longitudinal Study. Psychological medicine, pp.1-10.

Gov.uk, 2021. COVID-19 contain framework: a guide for local decision-makers. [Online]. Available at: https://www.gov.uk/government/publications/containing-and-managing-local-coronavirus-covid-19-outbreaks/covid-19-contain-framework-a-guide-for-local-decision-makers. [Access on 5 January, 2021]

Gov.uk, 2021. New global partnership launched to fight future pandemics. [Online]. Available at: https://www.gov.uk/government/news/new-global-partnership-launched-to-fight-future-pandemics. [Access on 5 January, 2021]

Guardian, 2021. [Online]. Available at: https://www.theguardian.com/business/2020/sep/25/uk-borrowing-surges-as-covid-pushes-national-debt-to-record. [Access on 5 January, 2021]

Guardian, 2021. Covid Pushes UK To peacetime record of 303bn. [Online]. Available at: https://www.theguardian.com/business/2021/apr/23/covid-pushes-uk-government-borrowing-to-peacetime-record-of-303bn. [Access on 5 January, 2021]

Leach, M., MacGregor, H., Scoones, I. and Wilkinson, A., 2021. Post-pandemic transformations: How and why COVID-19 requires us to rethink development. World Development, 138, p.105233.

Pichler, A., Pangallo, M., del Rio-Chanona, R.M., Lafond, F. and Farmer, J.D., 2020. Production networks and epidemic spreading: How to restart the UK economy?. Production Networks and Epidemic Spreading: How to Restart the UK Economy.

Pierce, M., Hope, H., Ford, T., Hatch, S., Hotopf, M., John, A., Kontopantelis, E., Webb, R., Wessely, S., McManus, S. and Abel, K.M., 2020. Mental health before and during the COVID-19 pandemic: a longitudinal probability sample survey of the UK population. The Lancet Psychiatry, 7(10), pp.883-892.

Susskind, D. and Vines, D., 2020. The economics of the COVID-19 pandemic: an assessment. Oxford Review of Economic Policy, 36(Supplement_1), pp.S1-S13.

Tisdell, C.A., 2020. Economic, social and political issues raised by the COVID-19 pandemic. Economic analysis and policy, 68, pp.17-28.

Wells, P., Abouarghoub, W., Pettit, S. and Beresford, A., 2020. A socio-technical transitions perspective for assessing future sustainability following the COVID-19 pandemic. Sustainability: Science, Practice and Policy,16(1), pp.29-36.