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Austerity in the United Kingdom and its legacy: Lessons from the COVID-19 pandemic

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  • Tania Arrieta

Abstract

The COVID-19 pandemic revealed that public institutions and some households in the United Kingdom (UK) were in a vulnerable and weak financial position to mitigate its immediate outcomes. Public institutions did not have the necessary resources to support their communities and low-income groups were disproportionally affected by the economic contraction of 2020–2021. This paper explores how the disastrous consequences of the pandemic were exacerbated by the implementation of an austerity programme, that as an extension of a neoliberal ideology, supported the development of the market at the expense of reducing the welfare state. Through an assessment of four trends that were reinforced during austerity—the four ‘Ds’—this article shows that austerity influenced many of the struggles observed during the pandemic. These trends are disinvestment, decentralisation, decollectivisation and disintegration. Despite the lessons learnt in 2020–2021 and the evident need to move away from a neoliberal agenda that dismantled the capacities of the state, this article concludes that neoliberalism continues to threaten the welfare state and the formation of social collectivities. Some expenditure decisions taken by the British government in 2020–2021 could further deepen social class divisions and regional inequalities. More is needed from the government to tackle these social problems and to build a fairer and more equal society. JEL Codes: H0, I3, O1

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  • Tania Arrieta, 2022. "Austerity in the United Kingdom and its legacy: Lessons from the COVID-19 pandemic," The Economic and Labour Relations Review, , vol. 33(2), pages 238-255, June.
    • Handle: RePEc:sae:ecolab:v:33:y:2022:i:2:p:238-255
    DOI: 10.1177/10353046221083051
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    References listed on IDEAS

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    Cited by:

    1. Christopher L. Atkinson, 2022. "Theme-based Book Review: Business, Government, and Neoliberalism," Public Organization Review, Springer, vol. 22(4), pages 1313-1323, December.

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    More about this item

    Keywords

    austerity; COVID-19; decentralisation; decollectivisation; disintegration; disinvestment; neoliberalism; pandemic;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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