How should the government try to boost the economy as we emerge from lockdown?

Some urge a VAT cut. Others propose changing the Bank of England’s mandate. What’s the case for these various proposals? Would they work? And what might be the drawbacks? Ben Chu looks at the evidence

The chancellor Rishi Sunak is mulling over which economic policy levers to pull (Reuters)

Rishi Sunak’s Treasury is floating ideas of how it might give a short-term boost to the economy as it emerges from the deepest slump in recent history.

Think tanks and analysts are weighing in too, seeking to influence the direction of policy as the question of how to facilitate recovery comes into focus.

One idea that is clearly under consideration is cutting the rate of Value Added Tax (VAT) in order to stimulate consumer spending, while another is to cut the National Insurance (NI) contributions of employers in order to encourage them to hire more staff.