Business, Energy and Industrial Strategy ministers were
answering questions in the Commons. Subjects covered
included...
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Insolvency
(Heywood and Middleton)
(Con)
What steps his Department is taking to support businesses facing
insolvency. [903254]
(Newcastle-under-Lyme)
(Con)
What steps his Department is taking to support businesses facing
insolvency. [903281]
The Secretary of State for Business, Energy and Industrial
Strategy ()
Mr Speaker, may I join you in your words about our former
colleague, ?
We have introduced the Corporate Insolvency and Governance Bill
to help companies maximise their chances of survival. The Bill
introduces new corporate restructuring tools and temporarily
suspends part of insolvency law to help businesses keep trading.
I thank my right hon. Friend for that answer. I was proud to make
my maiden speech on Second Reading of that very important Bill,
which will provide vital safeguards during the coronavirus
pandemic. Can he tell me what benefits it will have for
businesses, not just in my constituency of Heywood and Middleton
and across the north-west but in the wider country?
My hon. Friend is proving to be a real champion for businesses in
his constituency, and he raises an incredibly important point.
The impact assessment of the Bill’s measures suggests that the
three permanent changes to the UK insolvency framework will
result in net benefits to business of over £1.9 billion in
today’s prices, which is a much needed boost for businesses at
this uncertain time.
I welcome the Secretary of State back to the Dispatch Box after
his recent illness. Businesses in Newcastle-under-Lyme and across
the country face the risk of insolvency, especially those with
business models that are dependent on socialising. In addition to
what he has set out, which I welcome, can he tell us what
Companies House proposes to do to support businesses at threat of
insolvency?
My hon. Friend raises an important point, and this is part of the
Bill. While Companies House has extended the period for filing
accounts, we will give businesses the maximum period available
under the powers in the Corporate Insolvency and Governance Bill
for filing their accounts, confirmation statements and
event-driven updates. At a time when many companies are focused
on surviving, that will be very welcome respite.
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
Mr Speaker, may I echo your sentiments on the tragic loss of
?
Businesses facing insolvency will be under further pressure with
the premature end to the furlough and self-employed schemes, and
loan schemes are of little help, because they simply add to a
pile of debt. Does the Secretary of State agree that the sectors
hit hardest by covid-19 need long-term support to survive and
rebuild, which means extending the furlough scheme and support
loans being written off or converted to equity?
The level of support we have provided across the economy is
incredibly favourable by any international comparison. The
furlough scheme will be in place for a full eight months. That is
precisely the support that we have been very keen to give to
businesses.
Tourism is worth £10.5 billion to the Scottish economy, and
before the pandemic it provided 8% of jobs. While some businesses
will soon be able to reopen outside areas, vital public health
rules and consumer sentiment will mean that most activity is
subdued. Will the Secretary of State follow the Scottish
Government by setting up a tourism taskforce and use his
Government’s reserve powers to cut VAT for tourism and other
sectors, to help firms that are at risk of insolvency?
As I am sure the hon. Gentleman will know, my right hon. Friend
the Secretary of State for Digital, Culture, Media and Sport is
working with the tourism sector, and there is regular dialogue
with it. I recognise the concerns that he has raised about this
sector, which is closed, but that is why we have provided
particular support through a rates holiday for hospitality
businesses.
Hydrogen Technology
(North Antrim) (DUP)
What steps he is taking to develop hydrogen technology in the UK.
[903255]
The Minister for Business, Energy and Clean Growth ()
We are investing up to £121 million between 2015 and 2021 in
hydrogen innovation, supporting the application of new low-carbon
hydrogen technologies across the value chain. I have had valuable
discussions with businesses on the importance of scaling up
hydrogen supply, including with Wrightbus, in the hon.
Gentleman’s constituency.
I echo the sentiments expressed about our late colleague,
.
The Minister will be aware that Germany announced in the last
number of weeks that it is investing £5 billion in hydrogen
technology. It joins the long list of countries investing
billions of pounds, which includes Norway, the Netherlands,
Portugal, Japan, South Korea, New Zealand and Australia, as well
as the EU. The £121 million to which he referred is very welcome,
but it will never make us the leader of the pack in this
industry. Let us move on from trials, Minister. Let us move on to
real investment in this technology and become the world leader
that Britain and the United Kingdom can be in this wonderful
technology, which will create jobs and provide more employment
across the whole UK.
I am grateful for the hon. Gentleman’s enthusiasm for that
technology. The countries that he describes have announced
commitments to spending the money; they have not spent the money
yet. We will be following and pursuing that technology very
rigorously, with full Government backing, in due course.
Climate Change
(Ynys Môn) (Con)
What steps his Department is taking to tackle climate change.
[903256]
The Minister for Business, Energy and Clean Growth ()
Since 1990 we have grown the economy by 75% while cutting
emissions by 43%, and in June 2019, we became the first major
economy to legislate for a net zero carbon emissions target.
We are hosting the COP26 climate negotiations next year. Along
with our G7 presidency, we are determined to use our
international leadership to drive global climate ambition.
What assessment has my right hon. Friend’s Department made of the
potentially significant role that nuclear power can play, in the
hydrogen production from both large and small reactors? Does he
agree that Wylfa Newydd, in my constituency of Ynys Môn, is the
jewel in the crown of new nuclear sites?
I am grateful to my hon. Friend for that question. New nuclear
obviously has an important part to play in reducing greenhouse
gas emissions. We are investing in new nuclear. On Wylfa, I am
afraid, I cannot comment on the merits of the site, given that
the Secretary of State is currently considering a development
consent application. That said, there are a number of potentially
good sites around the entire United Kingdom.
(Greenwich and Woolwich)
(Lab)
The COP26 summit, now rescheduled for November 2021, will be a
critical moment in a fight against runaway global heating. We all
have a stake in ensuring that it is a success. Building momentum
for that summit and establishing our credibility as its host is
dependent on demonstrable leadership at home. In that regard,
does the Minister agree that there is a strong case for
publishing our nationally determined contribution before the end
of 2020, and an arguable case for basing that NDC on a
significantly enhanced 2030 target that puts us on the path to
achieving net zero?
My right hon. Friend the Secretary of State is, of course,
president of the COP26. He is committed to publishing very
rigorous and ambitious targets for ourselves. As I responded to
my hon. Friend the Member for Ynys Môn (), we are second to none
in our commitment—our legislation—in terms of dealing with
climate change. We have legislation that is very clear and sets
the path.
Post Office Network
(Motherwell and Wishaw)
(SNP)
What steps he is taking to support the sustainability of the post
office network. [903257]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
The Government recognise the critical role that post offices play
in communities across the UK. This is why the Government have
committed to safeguard the post office network by investing over
£2 billion between 2010 and 2018, and a further £370 million from
April 2018 to March 2021. I regularly meet with the Post Office
to find innovative steps to secure network sustainability and the
continuity of services across the UK.
[V]
I thank the Minister for his answer, but during the covid-19
pandemic, when sub-postmasters have proved just how essential
they are to our communities, many are handing in their keys as
they struggle to make a living, leaving communities without vital
services. Pre-covid Post Office figures show that Scotland is
still being hardest-hit by the postmaster crisis, with the
highest number of closed branches in the UK, increasing by 17%
since last year. Notwithstanding what the Minister has just said,
in the 2020 spending review, will Ministers agree to maintain or
increase the Government subsidy to post offices, to ensure that
communities can access a post office branch, or will they
continue putting the Post Office on a pathway to privatisation?
The Post Office is obviously made up of small businesses, which
are subject to the same problems as any, and Scotland, with its
rural nature, has been affected. That is why we look to temporary
post offices and outreach. But clearly, going forward, the
Government will reflect the value of postmasters and the post
office network in all their deliberations.
(Newcastle upon Tyne Central)
(Lab)
Last week, the House united in calling for a judge-led inquiry
into the Post Office Horizon scandal—hundreds of lives ruined and
innocent people imprisoned by a trusted public institution—except
the Minister, who proposes a forward-looking independent review,
which will not mention managerial or ministerial accountability,
Fujitsu’s responsibility or the key question of compensation. Now
the Justice For Subpostmasters Alliance is refusing to
co-operate, saying it does not believe that the review will get
to the bottom of one of the greatest miscarriages of justice of
our times. After all that those people have endured, will the
Minister not listen to them and commit to a judge-led inquiry?
The hon. Lady is mistaken if she believes that the review does
not look at the managerial responsibility of all the people
responsible for what has happened, and we need to listen to the
postmasters’ rebuke. Indeed, yesterday I discussed the matter in
a meeting with chief executive Nick Read and Calum Greenhow,
chief exec of the National Federation of Subpostmasters. Nick
Read committed fully to the review, leaving no stone unturned,
which is why I hope that with everyone coming together I can
encourage postmasters to engage in the review so that we can get
the answers they and the hon. Lady are looking for, to secure the
redress and the answers that they need.
Covid-19: Support for Businesses
(Bolton West) (Con)
What steps his Department is taking to support businesses during
the covid-19 outbreak. [903258]
(Dunfermline and West
Fife) (SNP)
What steps he is taking to support the business economy during
the covid-19 outbreak. [903260]
(Bridgend) (Con)
What steps his Department is taking to support businesses during
the covid-19 outbreak. [903264]
(Glasgow Central)
(SNP)
What steps he is taking to support the business economy during
the covid-19 outbreak. [903265]
(Gedling) (Con)
What steps his Department is taking to support businesses during
the covid-19 outbreak. [903268]
(New Forest West) (Con)
What steps his Department is taking to support businesses during
the covid-19 outbreak. [903271]
(Kenilworth
and Southam) (Con)
What steps his Department is taking to support businesses during
the covid-19 outbreak. [903275]
The Secretary of State for Business, Energy and Industrial
Strategy ()
The Government have introduced an unprecedented package of
support. This includes grants for small businesses, a rates
holiday for businesses operating in the retail, leisure and
hospitality sector, a range of loan schemes covering all sides of
businesses, the furlough scheme, the self-employment scheme, and
a range of tax deferral schemes, all designed to help businesses
through this very challenging time.
I thank my right hon. Friend for his answer. Brian and Karen
Tinniswood run the Provenance restaurant in Westhoughton, but
they have a deep concern about social distancing, which makes it
impossible to reopen their restaurant. What consideration has my
right hon. Friend given to reducing social distancing from 6 feet
to 3 feet, then getting rid of it altogether?
The issue that my hon. Friend raises is raised with me regularly
by businesses, and I completely understand the economic rationale
that his constituents have outlined to him. As he will know, a
review is taking place, and we will wait to see its results.
[V]
The OECD predicts that the UK recession will be the worst in the
developed world. The Federation of Small Businesses in Scotland
has issued a similarly depressing assessment. In terms of
supporting Scottish business, what have been the key asks of the
Department from the Secretary of State for Scotland?
I have detailed discussions with all Cabinet and ministerial
colleagues. I recognise the challenge ahead of us—there is no
doubt about that—but we have provided a significant amount of
support for the UK economy, and if that had not been put in place
a range of independent commentators have made it clear that we
would be in a far worse position.
Dr Wallis
The automotive sector is important to my constituency of
Bridgend, as it is to the whole UK economy. Will my right hon.
Friend outline what the Government are doing to help businesses
in that sector recover from the impact of covid-19?
I have set out the full range of support available to all sectors
across the economy, and the automotive sector can take full
advantage of that. I would point out that the job retention
scheme has been widely utilised by the automotive sector, with a
recent survey by the Society of Motor Manufacturers and Traders
showing that the scheme has been accessed for over 60% of
full-time workers in the auto sector.
A number of businesses in my Glasgow Central constituency find
themselves blocked from claiming under the job retention scheme
as a result of the deficiencies of Her Majesty’s Revenue and
Customs uploading real-time information before the outbreak. Will
the Secretary of State take up that matter with HMRC and the
Treasury, ask for discretion, and make sure that no business that
would otherwise be eligible has to lay off valued staff or,
worse, go bust, as businesses in my constituency cannot wait any
longer?
We want to support businesses, and I have set out a range of
measures that we have put in place. The hon. Lady referred to a
matter that ultimately is for HMRC and Her Majesty’s Treasury,
but I am happy to have a discussion with her after questions.
A few weeks ago, I was pleased to visit Arnold market in my
constituency and it was great to see that it was operating very
well under the new guidelines. As the wider high street is now
beginning to reopen, can my right hon Friend tell me what support
his Department will be giving to shops as they reopen?
I thank my hon. Friend for doing his bit to support businesses in
his constituency. In coming up with the workplace guidance, which
has allowed businesses to open safely, we have worked closely
with businesses, business representative organisations and trade
unions. I have already outlined the support that we have provided
for the sector, but what we all need to do is to get out there to
support businesses that are now opening. We owe that to them and
to the economy to get it going again.
What is available for those fast-growing firms that rely on
equity finance and for which loans and grants have not been a
good fit?
What an intelligent question. On 20 April, my right hon. Friend
the Chancellor announced a package of support worth £1.25 billion
for fast-growing innovative companies and that, of course,
included £750 million in grants and loans delivered through
Innovate UK, and a £500 million future fund, through which the
Government will invest up to £5 million per company, matched by
the private sector.
As my right hon. Friend adapts support for businesses, will he
keep very much in mind those important sectors of the economy
such as tourism and the creative industries that will need longer
to recover and more notice of guidance changes? Will he
recognise, as I am sure the Under-Secretary of State for
Business, Energy and Industrial Strategy, my hon. Friend the
Member for Stratford-on-Avon (), will have told him, that in
places such as Warwickshire those sectors are mutually
reinforcing and very important not just to the local economy, but
to the income of local authorities?
My right hon. Friend, I know, has been engaging with businesses
through virtual networks across Warwickshire, and I thank him for
the work that he is doing locally. What I would say to him is
that, of course, we have ensured that loan schemes are available
across the economy. Smaller businesses in hospitality, leisure
and retail have been able to access a £25,000 grant. The key
issue is to have a safe and phased reopening of the economy to
get it going again, which is what we are currently undertaking.
(Doncaster North) (Lab)
I join you today, Mr Speaker, in both mourning and remembering
.
I welcome much of the help that the Government have provided,
but, according to Make UK, we could see the loss of 170,000
manufacturing jobs this year. In France, steel got loans within
10 days of applying for them, and aerospace is benefiting from
billions of pounds of support, including for low-carbon engines.
Here, three months after the crisis began, 60% of companies that
have applied for large loans are still waiting and there has been
no targeted help for our manufacturers. Will the Secretary of
State tell us when specific help will actually materialise for
sectors such as steel and aerospace?
I do welcome the constructive tone in which we have approached
our exchanges over the past few weeks, but what I would just say
to the right hon. Gentleman is that if he looks at the sum total
of what this Government are providing, he will find that it is
significant and incredibly favourable when compared with
international comparators. On loans, as he knows, we have
increased the coronavirus business interruption loan scheme to
allow up to £200 million to be made available, and we will
continue to support businesses. He will also know that in certain
cases we do have individual discussions going on with businesses.
I urge the right hon. Gentleman to get a move on when it comes to
those sectors, because they really need the help. I want to ask
him additionally about sectors such as hospitality, tourism and
the creative industries, which have just been raised. They will
take longer to reopen and recover because of public health
measures, and I want to ask him about the impact on them of the
one-size-fits-all winding down of the furlough. Can he explain to
thousands of pubs across the country how they are supposed to
find an employer contribution for furloughed employees from
August when they are struggling even to survive? Is not the risk
of that approach, and we have seen the jobless figures this
morning, that hundreds of thousands more workers will lose their
jobs, and all of us will end up paying the costs in higher
benefit bills and a weaker economy? Would it not be better to
have a different approach for those at-risk sectors?
We have taken a whole-economy approach, as he knows, and I have
set out the measures that we have put in place. With regard to
the retail and hospitality sectors, we have provided specific
support for them in the one-year rates holiday, as well as the
additional support that is available, but the key issue here is
the safe reopening of the economy, and that is what we want to
continue with over the coming weeks.
Rural Areas and Market Towns: Support for Businesses
(West Dorset) (Con)
What steps he is taking to support the recovery of businesses in
(a) rural areas and (b) market towns during the covid-19
outbreak. [903259]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Our thoughts are indeed with our colleague who was murdered,
, and also with the hon. Member for
East Dunbartonshire (); we wish her a safe return
to this House.
We have introduced an unprecedented package of support for
businesses across the country to get through this incredibly
challenging period. More than £10 billion in grants—grants—has
been paid to over 830,000 businesses of all sizes, including £100
million to over 8,000 businesses in Dorset. I want to thank the
local leadership there for delivering that. This has explicitly
been targeted at those in receipt of rural rate relief, as well
as small business rate relief.
Market towns in West Dorset such as Lyme Regis, Sherborne and
Dorchester are thinking ahead, and I am supporting them to look
at innovations to boost the local economy following coronavirus.
These include virtual high streets and collaborating to improve
accessibility of local brands to those who may not be able to get
to the town. Will the Minister meet me to look at these concepts
and determine how we can support these initiatives going forward?
I know better than most, with Shipston-on-Stour, Alcester and
Bidford—very important market towns—in my constituency, that it
is more important than ever at this time to support businesses to
adopt innovative business models. I would of course be happy to
meet my hon. Friend to discuss those approaches to reopening our
economy in West Dorset and the lessons that this may hold for the
rest of the country as well.
Covid-19: High Street Businesses:
(Jarrow) (Lab)
What discussions he has had with the Secretary of State for
Housing, Communities and Local Government on the effect of the
covid-19 outbreak on businesses trading on the high street.
[903261]
(Slough) (Lab)
What discussions he has had with the Secretary of State for
Housing, Communities and Local Government on the effect of the
covid-19 outbreak on businesses trading on the high street.
[903298]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
My Department has regular discussions with Housing, Communities
and Local Government colleagues on the impact of covid-19 on high
street businesses. We have provided unprecedented support to high
street businesses. Pubs, shops, and hotels will pay no business
rates for 12 months; eligible retail, hospitality and leisure
businesses have received cash grants of up to £25,000; and
businesses that cannot pay their rent because of coronavirus will
be protected from eviction.
Businesses across my constituency continue to report the major
challenges that have been present since the start of lockdown,
particularly a loss of income, mounting debts, enforced closure,
insurance policies not paying out, the need to make redundancies,
and an inability to plan for the future given the uncertainty of
the current situation. Although many non-essential businesses
have reopened this week, it will still be a long road to
recovery, so will the Secretary of State review the grant scheme
to ensure support for our high street businesses that are doing
the right thing but could be decimated by covid-19?
One of the reasons we launched the £617 million discretionary
fund was so that we can reach more businesses, but clearly we
need to reopen safely non-essential retail, as started yesterday.
We need to monitor that. We need to make sure that opening up our
economy is the best way, along with the flexible support that we
are giving, to make sure that it can start to bounce back,
including in Jarrow.
Mr Dhesi
Economically, my constituency has been especially hard hit by the
coronavirus crisis, with almost 19,000 employees having been
furloughed. But while some businesses have been able to gain
access to Government grants and schemes, numerous independent and
family-run businesses have not been able to do so and have fallen
between the cracks of Government support. Will the Minister
urgently review the Government grant and loan schemes,
particularly for our high street businesses, so that they too can
benefit from them and our towns do not become ghost towns, or
mere carbon copies, because we would then lose our much loved
independent businesses?
The hon. Gentleman is absolutely right to highlight the plight of
independent businesses. That is why I was pleased to go to
Northcote Road in Clapham to see what they were doing there and
the community spirit that brings them together. We always look at
the flexibility of support, but we will also make sure, with the
safe opening of shops now, that the new normal is coupled with a
future view of the high street—the new reality, with changing
behaviour of consumers—so that in the years to come independent
shopkeepers can sustain and indeed thrive as local businesses on
the high street.
Mr Speaker
We now go to marvellous Manchester, with .
(Manchester Central)
(Lab/Co-op) [V]
May I, too, put on the record my remembrance of my good friend
?
Pubs, cafés, hairdressers and restaurants are the lifeblood of
our high streets. Business-critical guidance about their
reopening in just two and a half weeks’ time was due yesterday
but is nowhere to be seen. Instead, they got another review,
making a bad situation much worse. When will they get that
guidance? With either 1-metre or 2-metre distancing, most of
those businesses still will not be viable, so will the Government
finally recognise that vital business support schemes need to
follow the public health measures before we see large-scale job
losses and the decimation of our high streets?
As you will see from my hairstyle, Mr Speaker, I am desperately
awaiting the opening of hairdressers and barbers too. It is key
that we get this right, though. The economic impetus from the
hospitality sector in particular is made apparent to me every
single day that I speak to its representatives; indeed, I will be
speaking to a lot of them later this afternoon. We have to make
sure we get that right, with the confidence of customers coming
back. The Government’s first priority is to save lives and to
work with the scientific guidance. At the moment, when people go
out to shop at the businesses that are open today, 2 metres is
still the rule, but we will get further guidance as soon as we
practicably can.
Chinese Investment: Intellectual Property
(Huddersfield)
(Lab/Co-op)
What steps he is taking to ensure that Chinese investment in UK
businesses does not undermine UK intellectual property. [903262]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
The Government have powers under the Enterprise Act 2002 to
intervene in certain transactions on national security grounds.
We will bring forward legislation to strengthen our existing
powers in this area, including enabling Government intervention
in acquisitions of assets such as sensitive intellectual
property.
Mr Sheerman [V]
First, may I associate myself with our memories of ? She was my close friend, neighbour
and great comrade and colleague.
Why cannot this Government and Prime Minister wake up to the
threat from China, which wants to be the dominant world economic
superpower? Does the Minister not realise that China cannot be
trusted? It has been stealing our intellectual property from
universities, businesses and Government for years. How could we
possibly want it to be involved in our telecommunications
industry through Huawei, and will we please put a stop to the
partnership on developing nuclear power in our country?
We welcome inward investment in the UK’s civil nuclear sector.
All investment involving critical infrastructure is subject to
thorough scrutiny. Foreign investment and an active competitive
economy are key to the UK’s growth. The UK wants a modern and
mature relationship with China based on mutual respect and trust.
Life Sciences Sector: Vaccine Manufacturing
(North Cornwall) (Con)
What steps his Department is taking to support vaccine
manufacturing and the UK life sciences sector. [903263]
The Secretary of State for Business, Energy and Industrial
Strategy ()
We have set up a vaccines taskforce to lead and co-ordinate all
the Government’s activities to develop and manufacture a
coronavirus vaccine. As part of that, we are investing £93
million in a vaccine manufacturing innovation centre, which will
be completed 12 months ahead of schedule, by summer 2021. We are
also funding a rapid deployment facility, which will be able to
begin manufacturing vaccines at scale from August this year.
Ultimately, throughout this process, we are in the hands of our
brilliant scientists. I welcome the Secretary of State’s
statement on what he is doing to accelerate opening the vaccine
manufacturing innovation centre by next summer, but what more can
be done to ensure that we get on top of this disease and address
it as early as we possibly can?
Of course, my hon. Friend will know that we are providing direct
support to the vaccines being developed at Oxford University and
Imperial College London. He may also be aware that the Imperial
vaccine is now set to enter clinical human trials. We are also
leading international efforts to support vaccine discovery and
deployment.
Mr Speaker
I call the Chair of the Business, Energy and Industrial Strategy
Committee, .
(Bristol North West) (Lab)
UK-EU research collaboration contributes £2 billion to British
research and development and accounts for at least 5,000
researchers in British universities, as well as its contributions
to covid research and vaccination research. Will the Secretary of
State make a commitment that, irrespective of the free trade
agreement negotiations with the EU, the UK will seek third
country full associate membership of Horizon Europe to keep that
money coming into British R&D?
The hon. Gentleman will know that we are committed to being a
science and R&D superpower, which is why we have committed to
spending £22 billion a year by 2024-25 and to reaching 2.4% of
GDP by 2027. The discussions with the EU are ongoing, and we will
see what they lead to.
Hospitality Sector: Covid-19
(Sheffield, Brightside and
Hillsborough) (Lab)
What recent discussions he has had with representatives from the
hospitality sector on the effect of the covid-19 outbreak on that
sector. [903267]
(Manchester, Withington)
(Lab)
What recent discussions he has had with representatives from the
hospitality sector on the effect of the covid-19 outbreak on that
sector. [903278]
(Liverpool, Riverside)
(Lab)
What recent discussions he has had with representatives from the
hospitality sector on the effect of the covid-19 outbreak on that
sector. [903296]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
I have met regularly with a large number of representatives of
hospitality organisations to discuss the issues that they are
experiencing, including through the BEIS ministerial taskforce on
pubs and restaurants and my own weekly call with sector
representatives, the next of which is this afternoon.
[V]
I, too, record that my thoughts are with Jo Cox’s family today.
The hospitality sector has faced an unprecedented challenge due
to coronavirus, which has had an impact on many businesses in my
constituency of Sheffield, Brightside and Hillsborough. At the
start of the outbreak, the Prime Minister said that he would do
whatever it takes to support individuals and businesses. Will the
Government therefore extend the full furlough scheme to ensure
that the hospitality sector survives and workers in the industry
do not add to the shocking unemployment figures released today,
and, ultimately, to protect our communities from a further spike
of this terrible virus?
Indeed, Sheffield City Council has paid £87 million to 7,329
business premises. We have provided an unprecedented package of
financial support to businesses in the hospitality sector. We
continue to work with them. We continue to extend the furlough
system and make it flexible, in order to have part-time
furloughing, so that people can start to come back to work. It is
important, however, that we get the guidance out so that we can
work with the hospitality sector to get it to reopened, so that
it can start to bounce back.
Rumours are swirling about whether, how and which pubs will be
able to reopen on 4 July. The brewing industry urgently needs
clarity on whether it will be all pubs or just those with
gardens. The Minister just said that the guidance will be
available as soon as possible, but that is not good enough. We
are two and a bit weeks away. Beer needs to be brewed. Some of us
need a pint. When will that guidance be available? The brewing
industry and pubs need that clarity urgently.
It is not only that we need a pint. For pubs, it is about not
just coming back for the opening, but making sure that it is an
enjoyable experience for people, so they keep on coming back.
That is what will allow them to survive and thrive, so it is
important that we get the guidance out. I am trying to work with
the hospitality sector and pubs to make sure that there are as
few surprises as possible, but we need to make sure that we are
weighing that up with the scientific guidance so that pub people,
clients and people who want a pint know that they can go into a
pub safely.
I send my condolences to the family of .
Workers in the hospitality industry are heading for a crisis. It
has been one of the worst-hit sectors by the virus, with a
disproportionate number of young, low-paid and insecure workers.
My constituency of Liverpool, Riverside has an estimated 11,700
employees furloughed who are employed by small family-run
businesses, many of which do not qualify for grant support
because they are outside the £51,000 rateable value. Will the
Secretary of State fix the loans, extend the grants and plan for
recovery to ensure that support for the hospitality sector?
It is time for me to add my voice to that of Members across the
House expressing their condolences to the loved ones of and, indeed, wishing a swift
recovery to the hon. Member for East Dunbartonshire (). That was horrific news,
and I hope that she is back on her feet as soon as possible.
Liverpool City Council, which I have spoken to, has handed out
£87,885,000 to businesses, including small businesses and those
in the retail and hospitality sector. That is why I was pleased
to be able to extend the discretionary scheme to capture more of
the businesses that fell short. I know that Liverpool City
Council has an economic recovery plan, in addition to “Liverpool
Without Walls”, to encourage pubs and restaurants to open safely.
That will help young people especially to get back into
employment and get our economy up and running.
Start-Up Businesses
(Bexleyheath and Crayford)
(Con)
What steps his Department is taking to support start-up
businesses. [903270]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
We want to make the UK the best place to start and grow a
business, and it should not matter where in the UK that is. The
start-up loans programme has helped more people to realise their
dream of starting a business, with more than 72,000 loans, worth
£591 million, since 2012. During 2018-19, our growth hubs helped
more than 9,500 business starts in England, and through
programmes operated by the Government-backed British Business
Bank we are currently supporting more than £7.7 billion of
finance to more than 94,900 small and medium-sized enterprises.
[V]
Start-up businesses are vital to our economic recovery. What more
can the Government do to help the very smallest businesses access
the right finance quickly to survive during and post covid-19?
I pay tribute to my right hon. Friend for the work that he has
done with small businesses for many years, including when we were
working with businesses together. I know that he continues that
work. As part of the package of covid-19 recovery measures we
created the bounce-back loans scheme, which targets small and
microbusinesses in all sectors, providing loans from £2,000 up to
25% of the business’s turnover, with a maximum loan of £50,000.
Applications are done via a simple online form. As of 7 June,
782,246 loans, worth £23.78 billion, have been approved.
Independent Pubs: Covid-19
(Wolverhampton South West)
(Con)
What steps he is taking to support independent pubs during the
covid-19 outbreak. [903272]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
We have provided a significant package of support to
pubs—including a one-year business rates holiday and access to
grants of up to £25,000 per qualifying property—through a number
of schemes. That is alongside the business support available to
all sectors, including access to the coronavirus job retention
scheme and various Government-backed loan schemes.
Pubs in Wolverhampton such as the Merry Hill, Oddfellows and the
Mount Tavern will have been impacted by covid-19. I welcome the
measures the Minister outlined, but what is the longer-term
strategy to help pubs to return to a profitable state and to
become the vital community hubs that they were before?
I thank my hon. Friend for that question, because it is vital
that we recognise how important such businesses are as community
hubs. We recognise that trading conditions may be challenging for
many businesses for some time to come. We will continue to work
with the sector, both to prepare for reopening and afterwards. I
understand that the Minister responsible for small business—the
Under-Secretary of State for Business, Energy and Industrial
Strategy, my hon. Friend the Member for Sutton and Cheam
()—plans to continue to meet
representatives of the sector regularly.
Manufacturing Sector: Covid-19
(Wansbeck) (Lab)
What support he is providing to the manufacturing sector during
the covid-19 outbreak. [903273]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
We are committed to ongoing engagement with industry to ensure
that our manufacturers have the support that they need. That
includes a roundtable that I am holding tomorrow for north-east
businesses, which the hon. Gentleman will be interested in. Our
support for the industry includes the unprecedented £330 billion
package of business continuity support.
[V]
I send my condolences to the family of my dear friend and
colleague .
UK workers are much more vulnerable to redundancy than French and
German workers because the UK Government have announced that they
are already winding down their job retention scheme. That is not
my view, but the view expressed this weekend by the chief
executive of leading aerospace manufacturer Airbus. In France and
Germany, the subsidy schemes are set to last for up to two years.
Does the Minister not agree that UK workers deserve at least the
same job protections and guarantees as have been introduced in
other countries? What more can be done to save these vital UK
jobs?
The hon. Member mentions the aerospace sector, into which the
Government have put around £6.5 billion between the Bank of
England corporate finance scheme and UK Export Finance, with an
additional half a billion pounds of support. We have also put
£3.4 billion into the growth deal across the northern powerhouse,
with almost £380 million of that going to the north-east local
enterprise partnership area, including his constituency of
Wansbeck, which is benefiting from that to the tune of around
£2.25 million in a science, technology, engineering and maths
building at Northumberland College’s Ashington campus. A lot of
work is going into this unprecedented package, but we continue to
review all our interventions to make sure that UK workers get the
benefit of a dynamic recovery.
Post Office IT System (Review)
(Scunthorpe) (Con)
What progress his Department has made on undertaking a review of
the Post Office IT system. [903274]
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
On 10 June, the Government announced an independent review to
consider whether the Post Office has learned the necessary
lessons from the Horizon trial judgments and to provide an
independent and external assessment of its work to rebuild its
relationship with its postmasters. We are keen to see the review
launch as soon as possible, and we are in the process of
identifying a chair to lead the work of the review in order to
get the answers that we need and to hear those voices.
I welcome that answer and the Government’s commitment to the
review. Is the Minister aware of any support for postmasters and
postmistresses while the situation is ongoing?
The December 2019 settlement comprised a comprehensive settlement
of £57.75 million. The Post Office has opened a historical
shortfall scheme for postmasters who were not part of the group
litigation and who want shortfall issues recorded in Horizon to
be investigated and addressed. Many convicted claimants are going
through a further process with the Criminal Cases Review
Commission, with 47 referred to the Court of Appeal. Where
convictions are overturned, processes are in place for them to
receive compensation if appropriate.
Topical Questions
(Rother Valley)
(Con)
If he will make a statement on his departmental responsibilities.
[903314]
The Secretary of State for Business, Energy and Industrial
Strategy ()
My Department, together with Her Majesty’s Treasury, is at the
forefront of supporting businesses during these unprecedented
times. More than £10.3 billion has been paid out to businesses to
date by direct grant and an additional £38.2 billion through the
major loan schemes. The Government have supported 9.1 million
jobs through the coronavirus job retention scheme and 2.6 million
claims have been made through the self-employed income support
scheme.
In the past week, I have led five businesses taskforces to listen
to and work with the business community and academic experts as
we consider the measures needed to support our economy bouncing
back. We want to create a cleaner, greener and more resilient
economy and the output from those taskforces will feed directly
into the Government’s work on the economic recovery.
The Secretary of State will know that the UK has an opportunity
to lead the world in hydrogen technology, which will create
thousands of green jobs, cut emissions, unlock private investment
and increase our energy security. Just as we lagged behind with
battery technology, we risk missing the boat on hydrogen as other
nations set multibillion-pound hydrogen strategies. The UK needs
a hydrogen strategy. Will the Secretary of State meet me and
other colleagues from across the House who share my belief in
hydrogen to discuss how we can place hydrogen at the forefront of
our green recovery?
As my hon. Friend will have heard in the earlier answer from the
Energy Minister, we are committed to developing hydrogen as a
strategic decarbonised energy carrier. We are investing in the
value chain and both the Energy Minister and I will be happy to
meet him.
(Middlesbrough) (Lab) [V]
I associate myself with your remarks, Mr Speaker, and those of
other Members, about our much-missed colleague, .
There is a clear racial and class dynamic in the covid-19 death
rate, with those in working-class jobs, such as carers, taxi
drivers, security guards and retail assistants, who are
disproportionately black, Asian or minority ethnic, more likely
to die from the virus. Throughout the pandemic, insecure
employment practices have left millions without protections at
work or the financial support they need to safeguard their income
and allow them to self-isolate. Will the Secretary of State as a
first step recognise that insecure employment practices are
directly responsible for worsening inequalities, including
structural racism and discrimination?
I add my deepest condolences to the families and loved ones of
everyone who has lost their lives in this pandemic.
We are providing support across the piece for all individuals.
The hon. Gentleman talks about people from ethnic minority
backgrounds. He will know that we hold regular roundtables to
ensure that we are addressing individuals in all sorts of groups
that have protected characteristics.
(Workington) (Con)
My constituency has nearly 30 miles of coastline from Workington
to Bowness-on-Solway, with some of the highest tidal ranges in
the UK. What assessment has my right hon. Friend made of the
potential benefits of tidal range barrages along the Cumbrian
coast—not only the benefits to energy production security but the
wider socioeconomic benefits that integrated infrastructure might
bring? [903316]
The Minister for Business, Energy and Clean Growth ()
The Department is aware of several projects being considered on
rivers and estuaries such as the Wyre, the Duddon, Morecambe bay
and the Solway firth, and we have had frequent contacts with
developers. We remain open to considering well-developed,
well-considered projects that can demonstrate strong value for
money alongside other renewable generation.
(Midlothian) (SNP)
The coronavirus business interruption loan scheme—CBILS—was
supposed to offer a lifeline of support to struggling businesses,
but it is not reaching those who need it the most. Sky-high
interest rates are now being offered by some lenders, and that is
making it less of a lifeline and more like picking the bones off
desperate smaller firms. Will the Secretary of State press the
Chancellor to take action now to stop this unfair profiteering
and ensure that businesses pay no more than 2.5% interest, in
line with the bounce-back scheme? [903320]
As the hon. Member will know, the latest figures show that over
49,000 loans have been approved, to the value of more than £10
billion. There is a significant number of lenders attached to the
CBIL scheme, but if he has specific cases, he should definitely
come and talk to me.
(Wealden) (Con)
I would like to put on record my remembrance of my good friend,
. In the Business, Energy and
Industrial Strategy Committee, we are undertaking an inquiry into
the impact of covid on our major industries. All of them rely on
our maritime and ports sector to keep the supply chain going. Of
the £22 billion—a vast sum of money—that is being put together
for research and development, how much will be allocated to
maritime innovation and tech? [903322]
I pay tribute to my hon. Friend for all the work that she did as
shipping Minister. We have made the commitment to £22 billion a
year by 2025. That is the biggest increase in public funding of
R&D, and no doubt, as projects come forward from that sector,
we will look at them.
(Aberavon) (Lab)
I had the pleasure and privilege of sharing an office with
for almost a year before she was so
brutally taken from us, and our thoughts are with Brendan and the
family today. On the issue of steel, the Secretary of State will
be aware that the French and German steel industries received
vital Government-backed loans within 10 days of their respective
lockdowns starting. Here, months since the start of ours, the
British steel industry has yet to receive a penny. Does the
Secretary of State think that that is acceptable? [903325]
We are working with the steel sector, as the hon. Member will
know, and we continue to work closely with it. Of course I
absolutely remain committed to supporting a sustainable UK steel
sector. We have increased the amount of borrowing that can take
place under the larger CBIL scheme but, as I said to the right
hon. Member for Doncaster North () in answer to an earlier
question, when individual companies approach us, we will of
course enter into direct discussions with them.
(Harrow East) (Con)
It is good news that our shops are gradually reopening across
England, but they are in a delicate economic position. The good
old British compromise of our Sunday trading laws allows a
balance between the larger stores, the smaller shops, the
interests of consumers and the interests of staff working in
those shops. Does my right hon. Friend agree that the very last
thing we should be doing is disturbing that compromise and
potentially placing at risk the jobs and economic capabilities of
our small shopkeepers across England? [903323]
Of course we keep all these matters under review, and I know that
there is a range of views on this matter. I would just point out
that we did temporarily relax Sunday trading during the London
Olympics. That was to support consumers and, of course, the
economy as well.
(Lewisham, Deptford) (Lab)
[V]
As businesses go back to work, what support are the Government
giving to disabled people to ensure that they are able to return
safely or to continue to work from home? Will the Secretary of
State consider a tailored furlough scheme for disabled and
shielded people who cannot return to their workplace? [903328]
The obligations on employers to take care of disabled employees
have not changed. In the guidance that we have provided we make
reference to the fact that employers need to take particular care
of employees with particular protected characteristics.
(Bracknell) (Con)
Yesterday morning, I had the pleasure of visiting the excellent
Lexicon shopping centre in Bracknell, where I saw busy shops,
happy shoppers and dedicated staff who had done everything
possible to keep customers safe. Does the Minister agree that it
is now time to revise social distancing measures to below 2
metres, not least to give our high streets a big boost? [903324]
I again thank my hon. Friend for all he is doing to support local
businesses in Bracknell—more power to his elbow. I am sure all of
us will do the same in our constituencies over the coming days
and weeks. As I said in response to an earlier question, we are
reviewing the social distancing rule.
(Portsmouth South) (Lab)
One in four pubs do not have enough space to reopen and comply
with the 2 metre rule and 82% of those that could reopen would
have to operate at less than half capacity, putting pubs
including many in Portsmouth at risk. With reopening fast
looming, on what specific date will the Minister provide guidance
to British pubs? [903329]
The hon. Gentleman will know that we have worked collaboratively
with employers, employee representative organisations and trade
unions in producing the guidance that we have put out so far. We
continue to have a good dialogue with individual sectors, and
once we have concluded that, we will of course make that guidance
available.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
May I begin by saying that my thoughts and prayers are with the
hon. Member for East Dunbartonshire () and her family at this
time? Although a political opponent, she is, like was, a lovely person. Will the
Minister, given the recent major policy change, ensure that
contracts for difference— [903326]
Mr Speaker
Order. We are going to have to clear Members away from the
entrance. There are some seats. You will have to sit down. You
just cannot gather.
I will begin the question again, Mr Speaker. Will the Minister
ensure that contracts for difference funding will only be made
available to onshore wind farms in Scotland that have local
community support?
I am very grateful to my right hon. Friend for the question. He
will know that local consent and local support are absolutely key
to the pot one auction, but he will also be aware that planning
policy is a devolved matter in Scotland, and it is therefore for
the Scottish Government to set up national planning policies and
the approach to declining planning applications. He is well aware
that this Government have been very focused on local consent
right through this process.
(Brentford and Isleworth)
(Lab)
I also concur with the remarks made about my friend and colleague
. We remember her today and what she
stood for. As a member of the Transport Committee, I stand by our
description of British Airways as a “national disgrace” for the
way it has effectively fired most of its staff and will rehire
some of them on vastly cut pay and conditions. BA has done that
under the cloak of the pandemic and gone way beyond any other
major employer. The aviation sector will take longer to recover.
When that does happen, I hope the Government will step in to
support the sector. When they do so, will they ensure that
employers cannot get away with the tactics of British Airways and
also commit to delivering on climate change? [903330]
We appreciate that announcements about redundancies for British
Airways staff have been incredibly distressing for the employees
and their families. At the end of the day, the use of the
Government’s job retention schemes is preferable to making
redundancies. That is why we made them available. What I would
say in this case is that it is a commercial decision. We expect
British Airways and, indeed, all employers to treat employees
fairly and in the spirit of partnership.
(Thirsk and Malton)
(Con)
I draw the House’s attention to my declaration in the Register of
Members’ Financial Interests. It is right that the Government are
requiring landlords to show forbearance to commercial tenants,
but that is shifting some of the burden from the tenants to the
landlords, many of whom are small and medium-sized enterprises,
yet the banks are not providing a full payment holiday as they
are for residential and buy-to-let. It is simply a capital
repayment holiday, which is a small part of the payment. Will my
right hon. Friend see what he can do about that? [903336]
My hon. Friend, as ever, raises an important issue. It is why
both the CBILS and the bounce-back loans have a 12-month period
during which interest is paid on behalf of the business. I would
expect lenders to apply similar forbearance where needed in the
case of existing commercial loans.
(Birmingham, Selly Oak)
(Lab)
My thoughts are also with Jo’s family. Let me acknowledge the
basic decency of the furlough scheme. However, with vacancies
plunging and the spectre of unemployment rising—youth
unemployment in Birmingham is now at 18%—is it time for a jobs
and training package, so that we avoid a return to 1980s
unemployment levels for young people, when many from black and
minority ethnic backgrounds simply felt written off? [903337]
The hon. Gentleman raises an important point. As we look to see
how we can restart the economy and the whole process of recovery,
we will, of course, look at skills as well.
(Ashfield) (Con)
Many constituents, from right across Ashfield, have been in touch
with me as they are very concerned that they will be made
redundant by Rolls-Royce. With Rolls-Royce announcing last week
the locations of its first 3,000 redundancies in the UK, what
more can my right hon. Friend say to reassure my constituents
that the Government are doing everything they can to ensure that
they are supporting the employees affected, as these are the
people who have worked so hard to establish the company’s
world-leading position? If any of these highly-skilled and
professional workers are made redundant, what are the
Government’s plans to ensure that their skills are repurposed to
other projects? [903340]
My hon. Friend raises a hugely important issue. Employment and
the possibilities and opportunities for people are something we
are absolutely focused on. I assure him that we will do all we
can to help those who will be affected by this announcement to
get back into work as quickly as possible. This will include
working with the Department for Work and Pensions, Jobcentre Plus
and Rolls-Royce itself to make sure that economic opportunities
and jobs are freely available to those who might be affected.
(East
Lothian) (SNP) [V]
My constituency stands to benefit from offshore energy coming
ashore, yet it is hampered by prejudicial grid charges and
investment in infrastructure going elsewhere. Will the Minister
end the discriminatory charging regime and support Scottish
Government schemes seeking to ensure that Scotland benefits from
its natural resource off its shore and does not lose out, as it
did with oil and gas? [903339]
I do not think that is a fair characterisation of the situation.
We have huge offshore capacity; 35% of the global offshore wind
capacity is in the UK, with much of it sited in Scotland.
Scottish firms are extremely capable of competing in the
auctions, and I do not think it is fair to characterise our
position in the way that the hon. Gentleman has.
