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.
Read more:
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.
Despite the ongoing market meltdown on US trade tariffs, executives at major cryptocurrency firms Messari and Sygnum are bullish on institutional Bitcoin adoption later in 2025.
Speaking on a panel at Paris Blockchain Week on April 8, Messari CEO Eric Turner and Sygnum Bank co-founder Thomas Eichenberger said they expect a significant shift in the banking sector’s involvement with crypto in the second half of the year.
According to the executives, the global banking push into Bitcoin (BTC) services has great potential to happen in the second half of 2025 as regulators embrace crypto, including stablecoins and crypto services by banks.
“I think we’re probably looking at a muted Q2, but I’m really excited for Q3 and Q4,” Messari’s Turner said during the panel discussion moderated by Cointelegraph CEO Yana Prikhodchenko, forecasting “really interesting” things coming to the crypto market in 2025.
Crypto adoption is not just about Trump
While some investors focus on the pro-crypto stance of US President Donald Trump, Turner emphasized that broader regulatory momentum is what matters most.
“When you look at the potential of having market structure regulation in the US, stablecoin regulation, and just the fact that across the board, not just President Trump himself, but the SEC and all these regulatory industries are really embracing crypto,” Turner said.
Paris Blockchain Week’s panel with Cointelegraph CEO Yana Prikhodchenko, Bancor co-founder Eyal Hertzog, Sygnum co-founder Thomas Eichenberger, Messari CEO Eric Turner, AWS fintech leader Alex Matsuo and Near chief operating officer Chris Donovan. Source: Cointelegraph
Sygnum co-founder Thomas Eichenberger said international banks with US branches are also poised to enter the market once the legal landscape becomes clearer:
“I think it’s a matter of fact that US banks are preparing to be able to offer crypto custody and at least crypto spot trading services anytime soon.”
“I think by then I would agree with you, Eric,” he continued, projecting a continued phase of market uncertainty until the US establishes a clear regulatory framework.
Related: Ripple acquires crypto-friendly prime broker Hidden Road for $1.25B
Banks are no longer afraid of Bitcoin regulators
With the establishment of clear crypto rules for banks in the US, there will be a rush for crypto services by large international banks that are incorporated outside of the US but have a US-based presence, Eichenberger said.
“Some of them may have had their strategic plans in their cupboard to offer crypto-related services, but have been afraid that at some point they will be gone after by any of the US regulatory authorities,” he said, adding:
“Now I think there’s no one to be afraid of anymore in terms of regulatory authorities worldwide. So I think many of the large international banks will launch this year.”
Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Global trade tensions triggered by US President Donald Trump’s sweeping tariff measures may come to an end with a potential deal with China as investors remain concerned about escalation from both sides.
Trump’s April 2 announcement of reciprocal import tariffs sent shockwaves through global equity and crypto markets. The measures include a 10% baseline tariff on all imported goods, effective April 5, with higher levies — such as a 34% tariff on Chinese imports — set to begin on April 9.
However, the tariff negotiations may only be “posturing” for the US to reach an agreement with China, according to Raoul Pal, founder and CEO of Global Macro Investor.
“In the end, almost all the other tariff negotiations and rhetoric are all about getting China to agree a deal,” Pal wrote in an April 8 X post, adding:
“That is the big prize and both China and the US understand it and need it. Everything else is negotiation posturing. China needs a weaker $ and the US needs tariffs.”
Source: Raoul Pal
“Also, the US is trying to shut down China tariff arbitrage using other channels such as Mexico or Vietnam,” Pal said.
Related: Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur Hayes
China retaliates with new tariffs
Considering China’s latest retaliatory measures, a resolution remains unlikely in the short term.
In response to US tariffs, China imposed a 34% tariff on all US imports effective April 10, media outlet Xinhua News reported on April 4. China’s foreign ministry also vowed to “fight till the end” against Trump’s tariffs, which it called “bullying” by the world’s largest economy.
China overtakes the US in global trade. Source: Econovis
China overtook the US in 2012 to become the world’s largest trading nation by the total value of exports and imports, surpassing $4 trillion in goods trade that year, according to The Guardian.
Crypto markets watch trade outcome closely
As the trade dispute continues to evolve, analysts say a potential agreement between the two global superpowers could serve as a key catalyst for recovery in digital asset markets.
Crypto markets have a 70% chance to bottom by June 2025 before recovering, Nansen analysts predicted.
Related: Crypto market bottom likely by June despite tariff fears: Finance Redefined
Investor appetite for risk assets such as Bitcoin will depend on the global tariff responses from other countries, according to Nicolai Sondergaard, a research analyst at Nansen.
“We have reached somewhat of a local bottom in regard to tariffs and the impact on prices,” the analyst said during Cointelegraph’s Chainreaction live show on X, adding:
“Trump came out guns blazing, and we’ve mostly seen the worst from the US side, so we’ll see if other countries are willing to drop some of the tariffs because it’s very likely the US will do the same.”
Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29
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