The economy is paying for the government’s pandemic mistakes as restrictions are extended

The furlough scheme is high on a short list of things that the government has done well during the pandemic, writes James Moore, and the decision not to extend it is unforgivable and will have lasting consequences

(REUTERS)

The risk of the government’s failure to get the Delta strain of coronavirus under control is yet another lockdown. That would be economically horrible so its decision to delay the lifting of the remaining pandemic restrictions is the correct one.

Handily, the four-week delay also means the new reopening date coincides with when schools will be closing for the summer break, creating a little additional breathing space by removing a potential source of spread, assuming no further delay.

However, the parallel decision to go ahead without addressing the economic cost is astonishing.