With record economic decline, govt takes hit on failure to protect its people
The government is being called upon to protect its citizens from widening inequalities during the recession.
News brief - 12/06/20 View this email in your browser
With record economic decline, govt takes hit on failure to protect its peoplesponse
The headline news today is the unprecedented 20.4% contraction in GDP during April. When added to a steep decline in March, the economy has now shrunk by around a quarter since February. For comparison, the 2008-2009 financial crisis - the effects of which were so severe that they are still being felt over a decade later - led to an overall economic contraction of 6% over the course of one-and-a-half years.
Job creation, unsurprisingly, is also expected to see a record fall. The latest poll from the ManPower Group found that employers expect to advertise fewer vacancies than they have in over 30 years.
With a post-Covid crisis looming, and Brexit close on its tail, the government is being urged to take action to protect its citizens from widening inequalities - and the calls are not only coming from the left-wing of the political spectrum.
The Institute of Fiscal Studies has recommended immediate action to prevent the worsening of societal inequalities as a result of the pandemic, and has identified opportunities to improve equality to above pre-Covid levels.
Because the lockdown has had its worst impact on low-paid sectors, the workforces of which come disproportionately from BAME backgrounds, the pandemic will hit the poorest and most vulnerable hardest while widening ethnic inequalities, the IFS warned.
Given the demonstrated association between employment inequalities and poor health outcomes, this will also lead to widespread health inequalities, the think tank predicted.
Meanwhile, the richest will be somewhat shielded by the fact that their children's education is the least likely to have been disrupted, with private schools being significantly more likely to have continued remote learning during the lockdown.
The TUC called on the government to set up a National Recovery Council representing both unions and employers in order to face this collective threat with collective action.
But with news this week painting a dismal picture of the government's track record, most will not be holding their breath.
The Social Mobility Commission released a strongly worded report on the government's progress in reducing inequalities in the UK over the last seven years, pointing out that politicians have ignored nearly a third of recommendations provided to reduce the gap between rich and poor.
Further, the UK's leaders appear to be stubbornly holding firm to their Brexit proposals, despite the fact these could lead to a no-deal withdrawal from the EU.
A draft resolution from the EU Parliament revealed this week that Europe is unwilling to sign any trade deal that creates a "race to the bottom" on workers' rights and other social and competition standards. The document urges the UK's government to agree to a level playing field on such regulations, but thus far Brexit Chief Negotiator, David Frost, has refused "any alignment with EU rules".
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Economy shrinks by record 20.4%
With millions of jobs at risk, the TUC has called on the government to set up a national recovery council with unions and business.
Read the full report
Covid-19 presents opportunity to reduce inequality, IFS says
Having laid the entrenched inequalities of UK society bare, the current crisis presents an opportunity to take action against them.
Read the full report
Govt ignores one in three recommendations to improve social mobility
The government has performed particularly poorly when it comes to improving access to employment and fair wages.
Read the full report
EU ‘will reject any deal that fails to protect level playing field on workers’ rights’
A draft resolution suggests the EU will reject any trade deal with the UK that does not protect workers' rights.
Read the full report
Doctors to take govt to court over failure to provide PPE
Human rights laws require the government to conduct an urgent inquiry into the contribution of the State to workers' deaths, doctors claim.
Read the full report
Job creation faces record fall, poll predicts
The Coronavirus pandemic may have changed the nature of work forever, survey suggests.
Read the full report
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