COVID inquiry: Rishi Sunak says advisers had ‘ample opportunity’ to raise concerns over Eat Out – Sunak
Medical advisers were not consulted about the Eat Out to Help Out scheme as it was deemed a “micro” policy, according to Rishi Sunak.
The prime minister is appearing before the UK’s COVID inquiry, as part of its module on governmental decision-making in the pandemic.
He is giving evidence about his time as chancellor.
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The scheme was introduced on August 3 2020 – at the end of the first COVID lockdown – to provide discounts of up to 50% off the cost of food and alcoholic drinks at relevant restaurants, cafes and pubs from Monday to Wednesday – until August 31.
In October, the inquiry heard how one scientific adviser branded Mr Sunak “Dr Death” over the scheme.
Hugo Keith KC, the counsel for the inquiry, asked Mr Sunak about the process leading to the formation of the policy.
The prime minister said it was designed in the context of indoor hospitality already being opened – which he said was already announced – and including mitigating factors like one-way systems, contactless payments and one metre distancing.
He said Eat Out was a “micro policy” that would not require extra modelling, and was about encouraging people to use restaurants that were already deemed safe.
Mr Sunak said: “It was done very much in that context and in the same way that other economic decisions like a VAT cut for hospitality or a stamp duty card or indeed furlough or anything else or grants for the hospitality industry wouldn’t ordinarily be cleared with medical advisers, nor was it because we had already made the collective decision to reopen indoor hospitality.”
The prime minister was asked why no questions about the policy were raised after it was first announced, having not consulted on it first with medical advisers.
Mr Sunak said it was the responsibility of scientific and medical advisers to raise their concerns about the policy if they had an issue with it – even if it had already been announced by the government.
Asked about the issues raised by Sir Chris Whitty, Sir Patrick Valance and others, Mr Sunak said: “The onus is surely on the people who now believe that it was a risk to have raised it at the time when something could have been done about it if they felt strongly.”
He said that other departments and the devolved administrations were not consulted on the scheme as it was market sensitive.
Mr Sunak added: “This was a very reasonable, sensible policy intervention to help safeguard those jobs in that safe reopening. That was my view.
“I didn’t believe that it was a risk. I believe it was the right thing to do.
“But if others are suggesting that they didn’t, they had ample opportunity to raise those concerns in forums where I was there, or where the Prime Minister or others were, and they didn’t.
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Johnson was known as a ‘trolley’ because he would change direction
Key moments of Johnson’s inquiry evidence
Apology
The prime minister began his evidence by apologising.
“I just wanted to start by saying how deeply sorry I am to all of those who lost loved ones, family members, through the pandemic,” he said.
“And also all those who suffered in various different ways throughout the pandemic and as a result of the actions that were taken.”
Mr Keith and Mr Sunak spent much of the morning going through how choices were made in government.
Mr Sunak emphasised that it was Boris Johnson – as prime minister – who was ultimately responsible for making choices about the UK’s direction, and he would give input about the economy as chancellor.
Speaking about the government’s changing of course in the lead-up to the first lockdown, Mr Sunak said public health considerations were of primary concern, and that Mr Johnson acted largely on advice from SAGE (Scientific Advisory Group for Emergencies) – which itself would change.
The-then chancellor said he did not feel shut out and had adequate access to Mr Johnson.
WhatsApp messages
At the start of his evidence, the prime minister had to defend the fact he was unable to supply any of his WhatsApp messages from the pandemic to the inquiry.
The prime minister said he had changed phones numerous times since the pandemic began, and the messages had not moved between his devices.
Mr Keith raised an article in The Spectator magazine, published last year, in which Mr Sunak was interviewed. This article suggested Mr Sunak privately lobbied Mr Johnson and tried not to “leave a paper trail”.
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Mr Sunak said he would write to Mr Johnson when necessary – and as neighbours they would regularly speak informally, for example when they were in the garden of Downing Street with their families.
He added that he saw Mr Johnson more than his wife in the early days of COVID due to the length of time spent working.
Politics
Wes Streeting denies Labour has made ‘mistakes’ with ‘unpopular’ policies despite poor local election results
Health Secretary Wes Streeting has defended “unpopular” policies such as the cut to the winter fuel allowance despite Labour’s poor performance at the local elections.
Mr Streeting denied the government had made any mistakes when asked whether the policy was partly to blame for the party losing 189 council seats less than a year since the General Election.
Since coming into government last July, Labour has enacted a number of policies that were not in its manifesto.
These include means-testing winter fuel payments for pensioners, increasing employers’ national insurance contributions and slashing £5bn from the welfare bill.
Asked what mistakes his government had made so far that had led to its drubbing at the ballot box, Mr Streeting told Sunday Morning with Trevor Phillips: “Well, we will make plenty of mistakes.”
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Pressed again on whether he believed “mistakes” had been made, the health secretary replied: “No. When we made those choices, we knew they would be unpopular. And we knew that they would be opposed.
“The reason we made those choices is because we genuinely believe they’re the right choices to get the country out of the massive hole it was left in. And right across the board. Whether it’s the NHS, whether it’s schools, whether it’s prisons, whether it’s our defence and security, whether it’s crime and policing, there were enormous challenges facing this country when we came in.
“And we’ve had to make big and sometimes unpopular decisions so that we can face those challenges and deal with them. People might thank us if we just kind of go for the easy but we want to make the right choices.”
Some Labour MPs have urged the government to change direction, with one telling Sky News the cut to winter fuel was a “catastrophic error” that must be “remedied” if the party is to see any improvement in public opinion.
Others have warned that in courting Reform voters, the party risks fracturing its coalition of voters on the left who may be tempted by the Liberal Democrats and Green Party.
However, in the aftermath of the local elections, Sir Keir Starmer suggested the poor results meant he needed to go “further and faster” in delivering his existing agenda.
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Inside Reform’s election success
The real victor to emerge from Thursday’s local elections was Reform UK, which won control of 10 councils and picked up 677 council seats largely at the expense of the Conservatives in the south.
However, Reform also won the Runcorn by-election from Labour by just six votes, as well as control of Doncaster Council from Labour – the only local authority it had control of in this set of elections – in a significant win for Nigel Farage and his party.
The Reform UK leader declared that two-party politics was now “finished” and that his party was now the official “opposition” to Labour.
Asked whether the results meant that Labour would now treat Reform as “your most serious opposition”, Mr Streeting said: ” I certainly do treat them as a serious opposition force.”
“As I say, I don’t know whether it will be Reform or the Conservatives that emerge as the main threat,” he added.
“I don’t have a horse in that race, but like alien versus predator, I don’t really want either one to win.”
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Reform has put the two traditional parties on notice
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Reform UK are ‘fighting force’
Tory Party chairman Nigel Huddleston said Reform UK was not just a protest party and that Mr Farage was “a force in British politics”.
He told Trevor Phillips: “But the one thing about Nigel Farage is, and we’re seeing this again and again and again, he is a populist.
“He is increasingly saying everything that anybody wants to hear. He’s trying to be all things to all men.”
“We are establishing ourselves as a credible alternative government based on sound conservative principles and values and our values and our principles, and therefore our policies, will define the future of our party,” he added.
Kemi Badenoch has admitted it is “feasible” that Nigel Farage could become the next prime minister.
The Tory leader told the BBC’s Sunday With Laura Kuenssberg programme Mr Farage’s party was “expressing the feeling of frustration that a lot of people around the country are feeling” – but added it was her job to “come up with answers and solutions”.
Asked if it was feasible that Mr Farage could be the next prime minister, she cited how Australian Prime Minister Anthony Albanese had won re-election this weekend.
“As I said, anything is feasible,” she said. “Anthony Albanese: people were writing him off. He has just won a landslide, but my job is to make sure that he [Farage] does not become prime minister because he does not have the answers to the problems the country is facing.”
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Could Nigel Farage be prime minister?
Asked what Mr Farage was doing right, Ms Badenoch said: “He is expressing the feeling of frustration that a lot of people around the country are feeling.
“But he also doesn’t have a record in government like the two main parties do. Now he’s going to be running some councils. We’ll see how that goes.”
Mr Farage was the undoubted winner of Thursday’s local elections, in which 23 councils were up for grabs.
His party picked up 677 council seats and took control of 10 councils.
By contrast, the Conservatives lost 677 council seats as well as control of 18 councils in what was their worst local elections performance on record.
Mr Farage said the outcome spelt the end of two-party politics and that his party was now the official “opposition” to Labour – with the Tories having been rendered a “waste of space”.
Read more:
Reform has put the two traditional parties on notice
‘I get it’: Starmer responds after losing Runcorn by-election
Ms Badenoch said she believed the vote for Mr Farage on Thursday was partly down to “protest” but added: “That doesn’t mean we sit back. We are going to come out fighting.
“We are going to come out with the policies that people want to see, but what we are not going to do is rush out and tell the public things that are not true just so we can win votes.
“This is not about winning elections; this is about fixing our country. Yes, of course, you need to win elections to do that, but you also need a credible plan.”
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‘Farage is a force in British politics’
Conservative co-chairman Nigel Huddleston sought to play down the threat from Reform UK, telling Sky News: “When they’re in a position of delivering things, that’s when the shine comes off.”
He told Sunday Morning with Trevor Phillips: “The one thing about Nigel Farage is, and we’re seeing this again and again and again, he is a populist.
“He is increasingly saying everything that anybody wants to hear. He’s trying to be all things to all men.”
“We are establishing ourselves as a credible alternative government based on sound conservative principles and values and our values and our principles, and therefore our policies, will define the future of our party,” he added.
Asked whether the results meant that Labour would now treat Reform as “your most serious opposition”, Health Secretary Wes Streeting told Trevor Phillips: ” I certainly do treat them as a serious opposition force.”
“As I say, I don’t know whether it will be Reform or the Conservatives that emerge as the main threat,” he added.
“I don’t have a horse in that race, but like alien versus predator, I don’t really want either one to win.”
A group of US Senate Democrats known for supporting the crypto industry have said they would oppose a Republican-led stablecoin bill if it moves forward in its current form.
The move threatens to stall legislation that could establish the first US regulatory framework for stablecoins, according to a May 3 report from Politico.
Per the report, nine Senate Democrats said in a joint statement that the bill “still has numerous issues that must be addressed.” They warned they would not support a procedural vote to advance the legislation unless changes are made.
Among the signatories were Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim — all of whom had previously backed the bill when it passed through the Senate Banking Committee in March.
The bill, introduced by Senator Bill Hagerty, is formally known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
Related: Fed’s Powell reasserts support for stablecoin legislation
Senate prepares to vote on stablecoin bill
The Senate is expected to begin floor consideration of the bill in the coming days, with the first vote potentially taking place next week.
The bill has been championed by the crypto industry as a landmark step toward regulatory clarity. However, the Democrats’ about-face reflects growing unease within the party.
Although revisions were made to the bill after its committee approval to address Democratic concerns, the lawmakers said the changes fell short. They called for stronger safeguards related to Anti-Money Laundering, national security, foreign issuers, and accountability measures for noncompliant actors.
The statement was also signed by Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff.
Senator Kirsten Gillibrand and Senator Angela Alsobrooks were absent from the list, who co-sponsored the bill alongside Hagerty.
Despite their objections, the Democratic senators emphasized their commitment to shaping responsible crypto regulation. They reportedly said they “are eager to continue working with our colleagues to address these issues.”
Related: US banks are ‘free to begin supporting Bitcoin’
Crypto needs a stablecoin bill
On April 27, Caitlin Long, founder and CEO of Custodia Bank, criticized the US Federal Reserve for quietly maintaining a key anti-crypto policy that favors big-bank-issued stablecoins, despite relaxing crypto partnership rules for banks.
Long explained that while the Fed recently rescinded four prior crypto guidelines, a Jan. 27, 2023, statement was left intact in coordination with the Biden administration.
The guidance, according to Long, blocks banks from engaging directly with crypto assets and prohibits them from issuing stablecoins on permissionless blockchains.
However, Long noted that once a federal stablecoin bill becomes law, it could override the Fed’s stance. “Congress should hurry up,” she urged.
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