CORONAVIRUS Q&A

Russell Lynch, our Economics Editor, answers your questions

Leo Kay

Covid-19 has highlighted serious issues with the supply chains of many European industries. Will this usher in a wave of re-localisation from China?

Clearly, coronavirus will force many companies of all sizes to look at their supply chains and their vulnerability. According to research from investment bank Citigroup, the UK is the most vulnerable in Europe in terms of “intermediate” goods – that is, parts used in other equipment. Firms have used

China because it is cheaper, so moving suppliers could come at a cost to consumers. Sir Dave Ramsden, deputy governor of the Bank of England, told MPS last week that “deglobalisation” – exacerbated by trade wars – could be inflationary.

Alice Taylor How will charities cope when so many volunteers are older and in high-risk groups?

Untold hours of free labour is given out every day by volunteers and if they are hit, then children’s centres, charity shops, museums, etc will all be badly affected. I agree that the charitable sector could well be exposed. Nearly a third of volunteers are aged 65 to 74 and if the virus spreads, that will inevitably affect local services. Even healthy grandparents could find themselves involved in emergency childcare duties rather than volunteering if schools shut.

Oli Kendall Will there be any kind of tax breaks or other boost for the manufacturing sector in the Budget?

The worst impact has been in Midlands and the North, and Covid-19 has now added greater urgency. It is difficult to say for certain until the Chancellor opens his red box, but the chances are we will see a support package for those firms affected by the virus. The PM has announced an extension of the HMRC Time To Pay arrangements and a host of officials from the Governor of the Bank of England down have said that they will not let “viable” businesses go to the wall. The Bank could also cut interest rates.

Harry Jones Has there been any reduction in freight and/or passenger traffic on the Dover ferries or Eurotunnel?

There isn’t enough data yet. Eurotunnel figures for January showed a 10 per cent fall in freight traffic but that was in comparison with a year ago when firms stockpiled for Brexit.

Giovanna Lorio

Why doesn’t the UK ask people to stay at home before it’s too late? The virus is spreading fast and we are two weeks behind Italy. Should we not learn from other countries?

Essentially, it is a matter for politicians to balance social and economic disruption against public health risks. It’s worth noting, however, that Chris Whitty, the chief medical officer, is concerned that if we move to social distancing measures too soon then coronafatigue will set in. He said: “There is a risk if we go too early people will understandably get fatigued and it will be difficult to sustain this over time.”

Anonymous

What about HGV drivers? Who checks them? They are travelling across Europe but no one asks if they are OK.

According to the Freight Transport Association, the responsibility for drivers regarding coronavirus currently rests with individuals to self-isolate. There is no industry-wide testing regime. Supermarkets have been given permission to ramp up deliveries at night-time to ensure shelves are stocked.