The Chancellor of the Exchequer ()
Before I begin, I am sure the whole House will join me in sending
our very best wishes to my right hon. Friend the Member for Old
Bexley and Sidcup (). I have been fortunate in having worked closely
with him, and he is one of the nicest and most decent people in
politics —a fantastic Minister and a tireless advocate for his
constituents. We all look forward to his speedy recovery and to
seeing him back in this place as soon as possible.
Last week, the Prime Minister set out the actions that we must
take to control the spread of coronavirus. With your permission,
Mr Speaker, today I will update the House on the economic
situation we currently face, the action we are taking to support
the British people and businesses through the crisis, and the
factors influencing our outlook.
As the House knows well, coronavirus has already caused
significant harm to our economy. The scale of the impact bears
repeating. GDP fell by 18.8% in the second quarter of 2020. While
the economy grew as the country opened up over the summer, it
remained 6.7% smaller than it was before the crisis. The Office
for Budget Responsibility’s November forecast showed GDP falling
again in the final quarter of last year and it forecast the
largest fall in annual output for over 300 years. Even with the
significant economic support we have provided, more than 800,000
people have lost their jobs since February. While the new
national restrictions are necessary to control the spread of the
virus, they will have a further significant economic impact. We
should expect the economy to get worse before it gets better.
In response, the Government have put in place a comprehensive
economic plan. We have provided a fiscal stimulus of over £280
billion to fund our plan for jobs, to support public services
like the NHS, and to provide financial support for millions of
people and businesses. Some 1.2 million employers have furloughed
almost 10 million employees. Almost 3 million people have
benefited from our self-employment grants, taking the total
support for the self-employed to nearly £20 billion. Over 1.4
million small and medium-sized companies have received
Government-backed loans worth over £68 billion. Tens of billions
of pounds of tax cuts, tax deferrals and cash grants have been
delivered to businesses, and the United Kingdom Government have
guaranteed at least £16.8 billion of additional funding for the
devolved Administrations in Scotland, Wales and Northern Ireland.
In response to the new national lockdown, we are extending and
increasing our financial support. We are providing a bridge for
people and businesses until the economy reopens, to give them the
chance to rebuild productive capacity. To do that, we have
extended the furlough scheme to April, we are supporting
self-employed people with a fourth income grant, and we have
announced, alongside the introduction of new restrictions, an
extra £4.6 billion to protect UK jobs and businesses. All
business premises in England that are legally required to close,
including in retail, hospitality and leisure, can now claim
one-off grants of up to £9,000 for each of their business
premises, benefiting more than 600,000 businesses and coming on
top of the existing grants worth up to £3,000 paid each month. We
have also made discretionary funds of £500 million available for
local authorities in England to support local businesses in those
areas, on top of the £1.1 billion of discretionary funds that we
have already provided to local councils.
Sadly, we have not been and will not be able to save every job
and every business, but I am confident that our economic plan is
supporting the finances of millions of people and businesses.
Across almost all areas of economic policy, we are providing
comparable or greater support than all our international peers.
As the Office for Budget Responsibility, the Bank of England and
the International Monetary Fund have all recognised, our economic
response is making a difference by saving jobs, keeping
businesses afloat and supporting people’s incomes.
Looking forward, there are signs of hope. First, with the
vaccine, we can start to see a path out of coronavirus. Vaccine
roll-out is our most important economic lever and we have made
available over £6 billion. We have now administered over 2.4
million vaccine doses across the United Kingdom, and by 15
February we aim to have offered a first vaccine dose to everyone
in the top four priority groups identified by the Joint Committee
on Vaccination and Immunisation.
Also, the data shows that there are potential sources of
underlying resilience in our economy. In aggregate, we have seen
the household savings ratio reach record levels and, taken as a
whole, corporate sector cash buffers have improved. And of
course, we have now agreed a new trading partnership with the
European Union. We have removed that uncertainty from businesses
and can now start to do things differently and better—not least
in financial services, where in November I outlined for the House
our plan to reinforce the UK’s position as a globally pre-eminent
financial centre.
While the vaccine provides hope, the economy is going to get
worse before it gets better. Many people are losing their jobs,
businesses are struggling, and our public finances have been
badly damaged and will need repair. The road ahead will be tough.
Now it is time for responsible management of our economy, taking
the difficult but right long-term decisions for our country, but
I am confident that, with this comprehensive support that the
Government are providing and, above all, the determination,
enterprise and resilience of the British people, we will get
through this. I commend this statement to the House.
15:44:00
(Oxford
East) (Lab/Co-op) [V]
I start by joining the Chancellor in sending my very best wishes
to the right hon. Member for Old Bexley and Sidcup (). I know I speak for everyone on the Opposition
side of the House in wishing him a speedy recovery.
Six weeks have passed since the Chancellor last addressed this
House. In that time, the Prime Minister scrapped his proposed
relaxation of public health rules, introduced a new tier 4 level
of restrictions for London and large parts of the south-east, and
then superseded all of that with the imposition of a third
national lockdown. After the Prime Minister’s most recent
announcement, Parliament was, of course, recalled, and Members
were given the opportunity to ask questions of the Prime
Minister, the Health Secretary and the Education Secretary—but
the Chancellor was nowhere to be seen. His sole contribution to a
set of announcements that had profound implications for our
economy was a 90-second video on Twitter, which begged as many
questions as it answered.
There was no indication of how long the new grants are expected
to cover and no clarity on how the discretionary funding for
local councils has been calculated, nor of how it will be
allocated. Funds being provided to the devolved nations were
badged as new money, before the Treasury hastily amended its
website to reflect that that money had already been committed to
in December. We heard nothing about what would happen to those
people who had started a new job since the beginning of November
and are now ineligible for furlough. We heard nothing about what
level the fourth grant for self-employed people would be set at,
nor when that grant would be made available. We heard nothing for
those people who have been excluded from Government schemes right
from the very start, and we heard nothing about what the
Chancellor would do to fix the broken system of support for
self-isolation.
I was relieved to hear this morning that the Chancellor had
undertaken to address the House today, but I deeply regret that,
having last year blocked measures that would have helped to
protect the NHS and secure our economy, today he appears to be
out of ideas, urging us to look towards the sunny uplands but
providing nothing new. The purpose of an update is to provide us
with new information, not to repeat what we already know.
In addition, the Chancellor just now gave a highly partial
picture of the state of our economy, talking of a rise in savings
but not mentioning that over 5 million people are estimated to
have taken on over £10 billion in debt just to get through the
last year. He talked of corporate cash buffers, but did not
mention that City experts have predicted that there will be over
£100 billion in unsustainable corporate debt by the end of March.
The Chancellor needs to acknowledge the reality of the crisis we
face—a crisis made worse by his Government’s irresponsibility,
with our economy having suffered the worst recession of any major
economy. He needs to act accordingly. I therefore ask him to
respond to the questions that businesses and workers desperately
need answered. Will he update the furlough scheme to reflect the
dates of the current lockdown? When will he set out the new
incentive scheme he promised to provide for businesses that will
now not receive the job retention bonus? When will he provide
details on the next self-employment income support scheme? What
does he say to people who have been excluded from Government
support schemes from the very beginning and who still are not
helped by today’s announcement? How long will businesses have to
make the new one-off grants last for? When will councils find out
how the new discretionary funding will be allocated and on what
basis it has been calculated?
Does the Chancellor believe that those who are classified as
clinically extremely vulnerable should be automatically eligible
for furlough if they cannot work from home? When will he fix
support for those self-isolating, when the evidence for change is
overwhelming? When will his much vaunted Project Birch actually
start to deliver for struggling manufacturers? Will we have to
wait until the Budget for recognition of all these problems and
solutions to them, as was suggested by his social media account?
We had all hoped for a more optimistic start to 2021 than a new
national lockdown and yet more uncertainty about the future, but
the people of Britain understand that they have to make
sacrifices. They are doing their bit for the national effort
while the vaccine is rolled out. They are fulfilling their side
of the bargain. The Chancellor must fulfil his.
I thank the hon. Member for her response, and in particular for
her comments about my right hon. Friend the Member for Old Bexley
and Sidcup (), which I appreciate.
I think that it is right, where possible in this House, that we
acknowledge those areas—many areas, in fact—where there is
agreement on both sides of the House: for example, on wage
support, on business support, on loan guarantees, on funding for
critical public services, on tax deferrals and tax cuts, on
support for renters and homeowners, on support for job creation,
retraining and skills, on support for children learning at home,
on support for the self-employed, on support for the NHS, on
support for the vaccination roll-out, and on testing. I could go
on. The truth is that, politics aside, there is in fact
significant unity of purpose in this place: to protect the most
vulnerable; to vaccinate our people as quickly as possible; to
reopen our country; and, finally, to rebuild and begin the
process of recovery. Given this agreement, while it is right to
acknowledge the difference in degrees and emphasis that the hon.
Member poses, it is clear that on the fundamentals there is, in
fact, little disagreement.
Let me turn to the shadow Chancellor’s specific areas of concern.
With regard to the formula for the local authority grants, I can
tell her—as was, I think, published—that the formula for the
additional half a billion pounds will be the same as that for the
£1.1 billion that was issued shortly before the end of last year.
With regard to the furlough dates, she will be pleased to know
that the change in date from the original spring date through to
the new date at the end of October, before the announcement of
the new scheme and the extension, will bring an additional 3
million people into coverage for the furlough scheme. I am sure
that she will join me in welcoming that the scheme has protected
more than 9 million jobs over the past several months. It is, of
course, already possible for people to be furloughed if they are
clinically extremely vulnerable or have childcare difficulties,
but those decisions are, of course, to be made by individual
employers and their employees. It would not be right for the
Government to put a blanket mandate in place. The hon. Member is
right that the Budget is the appropriate place to consider her
various other questions, given the scale of the response and the
fact that all our major avenues of support have been extended
through to the spring.
The hon. Member made a comment about this country having
experienced the worst recession out of anyone. It is important in
this place that people have the right facts, particularly when
those facts impact people’s confidence and understanding of what
is happening. I must gently point out some facts, which I am sure
the hon. Member knows, because she will have studied this
carefully. She will know that, when making international
comparisons between the performance of our economy and others, it
is important that we are careful because everybody calculates
things in very different ways. Indeed, as the Office for Budget
Responsibility mentioned in its latest report—which I am sure she
will be able to read—and as the Office for National Statistics
has highlighted, in this country we calculate public sector
output very differently from almost any other country. It is very
clear that the way in which we calculate that output flatters
other countries and disadvantages us when it comes to making such
comparisons. As those independent forecasters have pointed out,
when corrected for that difference, we find that our economic
performance is actually very much in line with comparable
countries. It is not the worst, and I do not think that it is
good for confidence or for people’s understanding of the
situation for that to be propagated.
Throughout this crisis the Government have always been pragmatic.
When changes must be made, we have made them, and when help has
been justified, we have always provided it. We are now so close
to the end of this difficult period for so many people that I
would ask the hon. Member at this time to recognise that the
national interest is best served by our co-operation, not
partisanship. The vaccine roll-out is the most important priority
of this Government and provides us with the path to getting out
of this situation, protecting people’s health and releasing the
restrictions that are hampering our economic recovery. That
should be our focus—I know she will agree with me on that—and it
is in that spirit, in the best traditions of this House, that I
hope we will be able to see out this crisis in the coming months.
(Harwich and North Essex) (Con) [V]
I thank my right hon. Friend for his statement. I welcome the
continuation of the vital measures to support British business
through this further period, while keeping an eye on the
hospitality sector and small businesses, which continue to have a
very hard time and may need extra help.
May I invite my right hon. Friend to recall how we had to put VAT
on to energy-saving products before we left the European Union,
because of European Union rules? Having struck VAT off sanitary
products, can we look at other opportunities to use our freedoms
now that we have left the EU to strike VAT off energy-saving
products such as solar panels and home insulation, in order to
promote the greener recovery that we want to see emerging from
this crisis?
I thank my hon. Friend for his advice and for the helpful
information about the hospitality industry that he provided me
with over the winter period. It has been helpful in formulating
our response and I thank him for it. I also appreciate his
thoughts on future tax policy, which he will know remains for the
Budget. He is right to emphasise the importance of our green
recovery, which was why I was pleased to make sure that we can
fully fund, with £12 billion, the Prime Minister’s 10-point plan
for a green recovery, of which ensuring that we upgrade the
efficiency of our buildings with regard to heat and energy is a
key part, with more than £1 billion put aside for that. I will
bear my hon. Friend’s further thoughts in mind.
(Glasgow Central) (SNP) [V]
I thank the Chancellor for finally gracing us with his presence
and for not redacting his statement for once—I suspect that was
because there is so little in it that is actually new. What is
also missing is the additional £375 million that he promised to
Scotland on 6 January. It was lauded by the Tories in Scotland,
before the Treasury back-tracked, edited the press release and
decided that Scotland’s businesses were not entitled to the
£9,000 that English businesses will receive. Why?
Businesses are still struggling with debt and loss of income, so
will the Chancellor extend the English business-rate holiday to
allow Scotland to do the same? Will he continue the reduction in
VAT to assist those in the struggling hospitality sector?
The Chancellor acknowledges the 800,000 jobs lost, but not his
role in their loss and the uncertainty that his stop-start
furlough has caused. Will he commit to extend the furlough and
the self-employment support scheme for as long as necessary, with
no more arbitrary stop-start?
Still, the gaps remain—for freelancers, directors of limited
companies, those refused furlough and pregnant women who have
lost out, as well as those on annual pay-as-you-earn and the
newly self-employed. Will those who are now submitting tax
returns be included in the self-employment support scheme from 31
January? Hundreds of thousands of people are counting on being
able to do that.
Will the Chancellor extend the £20 increase to universal credit,
and will he finally expand it to include those on legacy benefits
who have seen no increase over these past months? Will he
increase the pitiful level of statutory sick pay?
I have said for months now that we will not be out of this crisis
quickly, and I am sad to have been proven right. On top of this
crisis, Brexit is causing chaos for Scottish exporters trying to
get their goods across the border. It is no wonder that Scotland
is looking on at this shambolic Westminster Government and
deciding in poll after poll that independence offers a brighter
prospect for our future than more of the same old Tory austerity.
I am happy to address directly the point about funding for
Scotland and perhaps clear it up. In recognition of the very
difficult circumstances that the devolved Administrations were
grappling with—as we all are during this crisis—the UK Government
made an unprecedented decision to provide an up-front funding
guarantee to provide certainty and clarity for the Scottish
Government so that they could make plans in advance of individual
announcements being made and the appropriate Barnett sums being
made available at that time. That was something that the Scottish
Government had asked for, and it was welcomed. It is now clear
that the hon. Lady seems to think that that is not a good thing.
The point of doing that is to provide up-front certainty, but it
is still also right to keep a tally of the various announcements,
as they are made, about the additional sums that they trigger for
Barnett, which will net against that guarantee, and then over
time the guarantee will be adjusted. If I am hearing from the
hon. Lady that she would prefer not to have up-front funding
guarantees and would prefer the system of knowing Barnett
consequentials only on an announcement- by-announcement basis,
she should please write to me and let me know. But in aggregate
this year £8.6 billion in up-front funding guarantees has been
made available for the Scottish Government; the most recent
announcement did trigger Barnett consequentials, which will net
off against that guarantee. Over time, as we have done, that
guarantee will be increased over the year as new announcements
are made. I am not sure I could tell from the hon. Lady’s
response whether businesses in Scotland have been offered an
additional grant of up to £9,000 to help them get through the
next few months. Perhaps she can clear that up for Scottish
businesses, because that is what the UK Government are providing
for businesses here in England. That money has been made
available to the Scottish Government through the guarantee, and,
of course, we look forward to seeing how they use it.
It is also important that this is not just about Barnett
consequentials; we have always adopted a UK-wide approach to our
support. Whether we are talking about the furlough scheme, all
the things we have done on VAT, supporting people into employment
or indeed our loans, many businesses and people in Scotland have
been supported, because this is one United Kingdom Government and
we will make sure that we provide support for our citizens in
every single part of it.
(Ipswich) (Con)
The hospitality sector in Ipswich certainly welcomes the grant
support the Chancellor announced last week—that is very
welcome—but about a month ago I held a virtual roundtable event
for the sector in Ipswich and it was probably one of the most
sobering virtual meetings I have taken part in since this
pandemic started. It was very sad to hear about the extreme
anxiety those in the sector have; they have poured their whole
lives into the businesses where they are working and there is
still concern even now. So will my right hon. Friend confirm that
he will be reflecting on what further support might be provided
ahead of the Budget? I am talking specifically about a potential
extension of the business rates holiday throughout 2021 and also
the support on VAT, because there is light at the end of the
tunnel but when we go into that much better place I want to make
sure that The Brickmakers Arms, The Kingfisher, the Belstead
Arms, Pauls Social Club and the California Social Club, which I
am now a member and stakeholder of—I own part of it now that I
have become a member—are there with us.
Mr Speaker
Order. It has to be a shorter question. We have put you on early
to make sure you can get things mentioned, but you cannot make a
speech in a question. I think we more or less have the drift of
it.
My hon. Friend is a fantastic champion for his local hospitality
industry, and I very much hope I have a chance to visit the
California Social Club in Ipswich at some point in the future. I
will bear in mind his suggestions for how we can look at
providing further support. This is a vital industry for our local
communities and nationally it employs more than 2 million people,
and he rightly says that they have borne the brunt of these
restrictions and deserve our support as we emerge on the other
side.
(Edinburgh
West) (LD) [V]
First, may I associate myself and my Liberal Democrat colleagues
with the remarks made about the right hon. Member for Old Bexley
and Sidcup (), whom I have come to respect greatly during my
time here? I wish him the speediest of recoveries.
What we have from the Chancellor today is just another series of
patches, whereas we need a long-term strategy. We still have
nothing for the many millions who have been excluded from all
financial packages, and our independent retailers need support
against the online behemoths. Today, we learned that already a
quarter of a million businesses are facing collapse. So when will
he tell us what his long-term strategy for recovery is? Will he
extend the furlough through the summer? Can he tell businesses
what help there will be for them now that they face an enormous
burden of debt?
All our economic support now extends all the way through the
spring. We will of course have a Budget on 3 March, where we will
provide an update on the next stage of our economic response to
coronavirus and the economic outlook for the rest of the country
as well. On the specific question regarding support for
businesses as against those online, the hon. Lady will be aware
that this year we implemented the digital services tax for the
first time, which collects a levy on online marketplaces. That
will collect significant revenue this year. It is a right step
and we are working with other countries to put in place a
multilateral solution, which is the best long-term way to solve
the problem she highlighted.
(St Austell and Newquay) (Con)
I thank the Chancellor for his latest announcement on grants,
which has been warmly welcomed by the hospitality sector. Can he
confirm that the up to £9,000 he has made available is in
addition to the up to £3,000 a month that has been made available
to businesses that have had to close? He will be aware that
businesses in the hospitality sector will continue to face real
challenges in the coming months in order to play a part in our
recovery. Will he reflect carefully on what further support we
might be able to make available to this vital sector in the
Budget?
I can confirm that the £9,000 is in addition to the monthly
grants of up to £3,000, which means that over the next three
months, businesses could receive up to £18,000 of total cash
support. I will bear in mind other avenues for future support. As
we come out of this, it will be important that the hospitality
industry is given every possible chance to succeed and flourish.
(East Antrim) (DUP) [V]
The Chancellor has said that we are now seeing signs of hope,
especially because a deal has been struck with the European
Union. It does not look like that in Northern Ireland, where
supermarket shelves are empty and thousands of people are being
sent letters from suppliers in England saying that neither they
personally nor their businesses will any longer be supplied with
goods. The steel industry today has received a letter from Her
Majesty’s Revenue and Customs saying that engineering firms will
have a 25% tariff imposed on steel that they bring here, and
companies that sell goods to GB have been told that they will not
get a refund on the taxes they have to pay, even though their
goods are not going into the EU. All this has been brought about
as a result of either a lack of knowledge by officials in HMRC or
a reneging on the promises the Government made that there would
be unfettered trade and access for UK firms selling in Northern
Ireland and vice versa. What is the Chancellor doing about the
impact that his Department is having on businesses in Northern
Ireland?
I am sorry to hear about some of the examples that the right hon.
Gentleman raised. I know that goods in aggregate continue to move
smoothly between Great Britain and Northern Ireland, and I am not
aware of any significant queuing. Individual issues are being
addressed by UK authorities. My right hon. Friend the Chancellor
of the Duchy of Lancaster is talking with colleagues across the
House to make sure that we are kept abreast of any particular
issues, so that we can look to resolve them as we can.
(Harlow) (Con) [V]
The Chancellor will know that I have worked hard and lobbied for
financial support for Harlow’s small businesses, and I really
welcome the financial package for our town, worth well over £160
million so far. However, I have been contacted by many businesses
in my constituency that have yet to receive much of the grant
funding they have been allocated, such as Carol Bush, the
wonderful landlord of the Golden Swift pub, because Harlow
Council is yet to distribute it. What steps can he take to ensure
that councils across the country distribute these grants from the
Government immediately, as they should have already done, to help
our hard-pressed businesses?
My right hon. Friend is right that this cash should get to
businesses as quickly as possible. I can confirm that the
guidance will be published this week, and cash from central
Government should be with local authorities by the end of this
week, at which point it will be up to them to distribute it as
quickly as possible. I know that they have been focused on this
in the past several months, so hopefully this process can be as
quick as we all need it to be.
(Sefton Central) (Lab) [V]
Infection rates in Sefton have more than doubled in the last
week, and hospital admissions are up by 50%. Those people who
have been excluded from financial support so far want to reduce
infection levels and hospital admissions by staying at home,
protecting the NHS and saving lives—they want to play their part
too, but they need the Chancellor’s help to do so. What is his
objection to using the £2 billion that the large retailers have
returned in unused business rate relief to enable the many
freelancers, self-employed people, people who run small firms and
people who changed jobs at the wrong time to play their part in
the national interest while we wait for the vaccine to be rolled
out?
I think that the Opposition had called for that money—the £2
billion—to be used to support small businesses, particularly
retail and hospitality businesses, which we have now supported to
the tune of £4.5 billion; I know it would be nice to spend the
same money twice. With regard to those who need supporting for
self-isolation purposes, we have made available £500, on a
means-tested basis, to those who need that help, and that money
is being worked through with local councils and the Department of
Health.
(North
Somerset) (Con)
Given the state of public finances, and as we look to the
post-covid recovery, will my right hon. Friend resist any calls,
in his forthcoming Budget, for increases in public expenditure?
This needs to be a private-sector-driven recovery, most
importantly by small businesses who will provide the employment
and prosperity that we will need going forward if we are to fund
our public services in future.
My right hon. Friend is absolutely right and has spoken
passionately about this throughout his entire career. I firmly
agree with him: this must be a private-sector-led recovery.
Government cannot and should not do everything. We can support
free enterprise by investing in skills, innovation and
infrastructure, but ultimately it will be those small and
medium-sized businesses that create the jobs that we desperately
want to see.
(Halton) (Lab) [V]
Like my hon. Friend the Member for Sefton Central (), I am very disappointed that the Chancellor has not
given support for the many self-employed people who are not
getting help, but my question is on another issue. The Chancellor
appears to have little appreciation of how low-paid people manage
to survive from week to week. Given the huge coverage today
pleading with people to stay at home and follow the rules, I
would have expected him to have announced better support for
those who need to isolate. The fact remains that some people who
should be isolating will go into work because they are struggling
to put food on the table or pay their heating bills, and cannot
afford to lose any income. I ask the Chancellor again: will he go
away and look at what extra support can be given to ensure that
people who are isolating do not lose any income and that gives
them the incentive to stay at home?
We have in fact put in place payments to financially support
those who need help when they are asked to stay at home, and they
are available up to £500. As we have now reduced over time the
period of self-isolation, the real value of those payments has
actually increased, in some cases by 20%, 30% or 40%, depending
on when people were contacted. More generally, throughout this
crisis the Government have always made sure that we look after
the most vulnerable. That is clear in the measures that we have
taken and clear in the data that was published over the summer
showing that those on the lowest incomes have had their situation
protected the most by this compassionate Conservative Government.
(Altrincham and Sale West) (Con)
In normal times, a successful British aviation sector supports 1
million jobs in this country. Will the Chancellor look urgently
at what can be done best to ensure a rapid recovery for the
sector heading into the summer? In particular, as he prepares his
Budget, will he look at whether it makes sense for us to have one
of the highest levels of air passenger duty anywhere in the
world?
I thank my right hon. Friend for his question. He is right to
passionately champion both our aviation and aerospace sectors,
which are critical to our economy. I am grateful for the help
that he gave in helping to design a test-to-release policy for
quarantining arrivals, but also in campaigning for business rates
relief for airports—up to £8 million per airport, which is
benefiting dozens of our regional airports up and down the
country. I will bear in mind his suggested measures for
forthcoming Budgets, but, like him, I want to see our industry
return to its strength.
(Paisley and Renfrewshire North) (SNP) [V]
Just for the record, the Chancellor said that he was unsure of
what the Scottish Government were going to do with regard to the
business top-up grants. It has just been announced that larger
hospitality businesses will receive up to £25,000 in Scotland.
Due to his intransigence, it looks like the 3 million excluded
will be going a full calendar year without support. That is
absolutely shameful. The fact that the £20 per week uplift to
universal credit does not apply to legacy benefits is equally
shameful. Can the Chancellor tell my constituents about to lose
that £20, when Minister after Minister admits that they could not
survive on universal credit rates, why and how he expects so many
of our constituents to do just that?
The Scottish Government obviously have control over their
tax-raising powers and indeed have the ability to top up and
design benefits, so if that is something that they are keen to
do, they have the ability to raise the tax to fund a permanent
uplift in the welfare system. I am sure that that is an
opportunity that the Scottish Government can take up if they want
to and see fit to do so.
Neil O’Brien (Harborough) (Con) [V]
As well as the 18,000 people in my constituency who benefited
from the furlough, businesses here have benefited from more than
£50 million-worth of loans. As we move into the recovery, we need
to make sure that they are creating jobs and are not held back by
excessive debt repayments. What will the Chancellor do through
pay as you grow or other schemes to make sure that they can get
on with the business of creating wealth and creating new jobs?
My hon. Friend is absolutely right about the importance of cash
flow, and he is right to highlight pay as you grow, which means
that the 1.3 million businesses that have benefited from bounce
back loans will have the opportunity significantly to reduce and
extend their repayments for those loans. By extending the
repayment term to 10 years from five, we have cut the average
monthly payment by almost half from just over £500 to just over
£300. Businesses also have the option to move to interest only,
which further reduces the payment to around £60 or £70 on a
typical loan. That extra cushion will ensure that businesses can
save their cash for driving their businesses forward as they
reopen after these restrictions.
(North Down) (Alliance) [V]
I acknowledge the scale of the financial support that has been
provided by the Chancellor, but almost a year on there is a
stubborn refusal to address the needs of those who are excluded
often by what are seen as very arbitrary rules. Will the
Chancellor confirm that the Treasury has indeed received a number
of constructive proposals on how existing schemes can be modified
without the risk of fraud? Will he commit to giving those
proposals a fair consideration and, where appropriate, to making
back payments?
I am happy to assure the hon. Gentleman that my right hon. Friend
the Financial Secretary to the Treasury has met various groups
and has received various proposals, and of course we will give
those proposals fair and due consideration.
(Stroud) (Con) [V]
Stroud and the south-west is packed with creative people and
industries that need innovative support right now. Specifically,
many UK film and TV productions have struggled to get insurance
for costs related to covid-19. Can my right hon. Friend outline
for the House what the Government are doing to support this £4
billion UK industry?
My hon. Friend is absolutely right to highlight the importance of
the creative industries to the UK economy and, indeed, to our
social or cultural capital. That is why the Government have
created a £500 million film insurance scheme, to which she
rightly alluded. More than 100 different film productions have
taken advantage of the scheme so far and it is currently
safeguarding over 14,000 jobs. It is that kind of thinking that
we hope can help drive our recovery and support the industry that
she rightly champions.
(Warrington North) (Lab)
In line with advice from the Royal College of Obstetricians and
Gynaecologists, the Royal College of Midwives, the TUC and
Maternity Action, will the Chancellor of the Exchequer today
commit to amending the furlough scheme to cover the cost of
maternity suspensions on full pay for women who are 28 weeks or
more pregnant or otherwise medically advised to shield?
There are specific provisions in place in guidance for employers
for calculating pay with respect to periods of maternity.
Hopefully, those are clear, but I am very happy to look into the
hon. Lady’s specific point.
(Bridgwater and West Somerset) (Con) [V]
My right hon. Friend is aware how good Bridgwater and Taunton
College is and how many apprentices it is training for Hinkley
Point and many other organisations. One of the unforeseen
consequences of the pandemic is that £8 million of the college’s
funding goes into training those people but, unfortunately, a lot
of employers are not taking on apprentices, or are making them
redundant, so those young people are not getting the chance to
finish their training in the skills they need to get jobs. Can we
urgently examine ways to ensure that they and the colleges are
empowered to train those young people and get them into the
workplace as soon as possible?
I am fairly certain we have already put in place a new matching
services for apprentices who, sadly, are unable to complete their
apprenticeship with their current employer, but I am happy to get
the details and write to my hon. Friend about that. More broadly,
like him, I support passionately further apprenticeships, which
is why we have given companies a £2,000 bonus to take on a new
apprentice and provided additional funding to both businesses and
colleges to pay for the associated training.
(Wirral South) (Lab) [V]
Thank you for calling me, Mr Speaker, and well done Chorley FC!
If the only economic message is quibbling about how statistics
have been used, there is no message. Now that the Chancellor is
with us, can I ask him, if he thinks there is so much unity of
purpose, does he really stand by the plan to cut £20 a week from
universal credit and to maintain the cruel two-child policy? I
give him the opportunity to make an announcement and do something
today to make sure that his appearance before us in the House
today is not a total waste of time.
At the beginning of the pandemic, we put in place a temporary
uplift in universal credit, which lasts all the way through to
the end of this year. Of course, future tax and welfare decisions
will rightly be made at the Budget.
(Rother
Valley) (Con) [V]
Labour-run Rotherham Council took a long time to devise a
discretionary scheme for businesses and individuals excluded from
support during the first lockdown, and ended up handing back
millions of pounds to the Government because it had not
distributed the money. Can my right hon. Friend assure me that
the Government have given councils the flexibility and support
necessary to ensure that local businesses and the self-employed
receive the full help they deserve, and that councils have a duty
to distribute funds speedily and effectively, so that that
mistake is never repeated?
I can give my hon. Friend that assurance. The funding is indeed
discretionary. Obviously, I and the Government do not know the
exact economic circumstances in every local area and it is right
that local authorities are best placed to make those
discretionary decisions. They know their areas and how best to
support their businesses, and our guidance gives them the
discretion to do so.
(Birmingham, Selly Oak) (Lab) [V]
The Chancellor says he is supporting 95% of the self-employed—a
claim he knows is disputed—but even if we accept his figures,
does that not mean that 250,000 people lose out? Surely writing
off a quarter of a million people and their families is not what
he means by “whatever it takes”?
Those figures are not disputed; they are fact, based on the
returns we have. Of the returns we have from people who are
majority self-employed, 95% qualify and are eligible for support.
The 5% who are not, to whom the hon. Gentleman alludes, are
excluded because their income is greater than £50,000. He will
have heard me say before that the average income of those people
is £200,000, and I think it is right that we target support on
those who most need our help.
(Crewe and Nantwich) (Con) [V]
I thank the Chancellor for the further one-off grants for closed
businesses of up to £9,000. Businesses in Crewe and Nantwich are
very ready for the cash, but can he assure them that they do not
need to choose between those one-off grants and the monthly
grants—that both are available to affected businesses?
I am happy to confirm that that is absolutely the case.
Businesses do not have to choose: they will continue to benefit
from the monthly grant of up to £3,000 a month, and on top of
that, to help them to get through this difficult period till the
spring, they can additionally receive a one-off grant of up to
£9,000. That means that cumulatively over the next three months,
businesses could receive up to £18,000 of support. I know that my
hon. Friend’s businesses will warmly welcome that. He has spoken
to me at great length about supporting his local hospitality
industry, and I hope that this helps.
(Orkney
and Shetland) (LD) [V]
The Chancellor’s assertion that the Prime Minister’s trade deal
means that businesses can now start to do things differently and
better will have been heard with total incredulity by anyone
whose business involves the export of seafood. The new procedures
for export are a bureaucratic mess that has brought export trade
to a grinding halt. One local fish trader told me this morning
that a single consignment now has to go with no fewer than 17
different attachments, and another told me on Friday that he had
lost £50,000 on a single consignment that he had been unable to
export. What is the Chancellor going to do to offer help to fish
exporters to get them through this very difficult time—difficult
because of the Department for Environment, Food and Rural
Affairs’ own rules and procedures?
What this deal ensures is that all those businesses that the
right hon. Gentleman mentioned have tariff-free access to
European markets. Otherwise, there would have been significant
tariffs on those exports. He is right that there are changes to
our trading relationship. That has always been the case, and the
Prime Minister and the Government have been clear about that. I
know that my right hon. Friend the Chancellor for the Duchy of
Lancaster is working through individual issues as we look over
time to streamline and improve all our processes. The right hon.
Gentleman will also know that we have invested a huge amount of
resource in the IT systems at DEFRA and in providing support for
those businesses that need help to fill out various customs forms
and meet new procedures.
(Stoke-on-Trent Central) (Con) [V]
I welcome the £4.6 billion in grants announced last week for the
retail, hospitality and leisure sectors. As my right hon. Friend
will be aware, businesses in the hospitality industry have been
subject to restrictions since the beginning of the pandemic,
leaving the sector as one of the hardest hit financially. I have
spoken to many affected business owners and workers in
Stoke-on-Trent Central. As we approach the end of this financial
year, with the possibility of restrictions now extending beyond
it, will my right hon. Friend reassure me and businesses in my
constituency that the Government will extend the existing package
of measures, including the current business rates relief and VAT
reduction, which act as an important lifeline for many in the
sector?
I know from visiting my hon. Friend’s local area how important
hospitality businesses are to her. While I obviously cannot
comment on future Budget decisions, I can give her the assurance
that I remain very committed to supporting our fantastic
hospitality businesses through this crisis, so that they can
recover strongly on the other side.
(North Antrim)
(DUP)
I thank the Chancellor for his statement. Northern Ireland is
facing a double whammy. First, we are coping with the economic
consequences of covid, and we thank the Chancellor for the help
with that, but at the same time we are also trying to deal with a
protocol that is crippling businesses in Northern Ireland. South
of the border, the Irish revenue authorities have said that all
companies can circumvent customs to deal with this problem, but
on our side of the border, HMRC is increasing the red tape. This
protocol is an unmitigated disaster. Personal protective
equipment can no longer get into Northern Ireland. Foodstuffs
cannot get into Northern Ireland. Marks & Spencer has
produced a list of 400 goods it will not bring into Northern
Ireland. We now must invoke article 16, and I encourage the
Chancellor to do that. I am sure that the Scots Nats are
delighted they do not have a protocol now.
I thank the hon. Gentleman for his question and for registering
some of those issues with me. I know that he and other colleagues
are speaking to the Chancellor of the Duchy of Lancaster about
individual issues, and I will be sure to follow up with him later
today. The hon. Gentleman will know, and I hope it is helpful,
that we funded with £200 million a trader support service, which
is helping businesses in Northern Ireland to adjust to the new
arrangements. I think 25,000 at the last count had signed up, and
I know that the response has been pretty good, but there is
always more we can do, and I look forward to talking to the
Chancellor of the Duchy of Lancaster later.
(South West
Wiltshire) (Con) [V]
The Treasury has done really well supporting businesses and jobs
in this crisis, but directors of small limited companies are many
of the people who will ultimately be paying for the Treasury’s
support. What can be done, perhaps using a version of the
Federation of Small Businesses’ suggestion of a directors income
support scheme, to help prevent hard-working linchpins of our
economy—on modest incomes taken as dividends—from falling through
the cracks?
We always will give fair and due consideration to any proposals
that we receive. Indeed, the Financial Secretary to the Treasury,
my right hon. Friend the Member for Hereford and South
Herefordshire () has met the FSB and received the proposal, and we
will go through it in detail.
(Glasgow North) (SNP)
Musicians and performers in Glasgow North have already very often
been excluded from the Chancellor’s support packages, and they
will find it difficult to look towards a brighter future when
they then hear that the Government have failed to negotiate
visa-free touring for them across the European Union. Many of us
have been warning that Brexit would simply compound the economic
crisis caused by a pandemic, and that kind of decision seems to
prove the point, does it not?
We have provided significant support to our cultural industries.
I think it is right that we highlight the contribution they make
both to our society and to our economy. I struggle to find any
other countries that have matched the £1.5 billion of support we
have provided, which has now gone out, I believe, to over 3,000
different cultural institutions, supporting the livelihoods and
local institutions that cover performing arts, such as musicians,
and we know that they will play an important part in our
recovery.
(Preseli
Pembrokeshire) (Con)
There are businesses in my constituency in Pembrokeshire that
only made it through to the end of 2020 because of the
outstanding support and intervention by this UK Government, and
the funding support that the Treasury has provided for the
devolved Administrations has been a key part of that. However,
does my right hon. Friend share my concern that, at the same time
as businesses in my constituency tell me they feel shut out of
the Welsh Government’s business support grant scheme, it appears
that the Welsh Government are sitting on about £1 billion of
unallocated funding support? Does he agree that this is not a
moment for holding back support and that we need to be getting it
to the frontline, especially for small businesses?
I thank my right hon. Friend for the question, and he is
absolutely right. We must try to get our cash support out to
businesses as quickly as possible; they are suffering as we
speak. The Welsh Government have been provided with over £5
billion in an up-front funding guarantee, and he is right to
highlight the importance of that money getting out to support the
local businesses that he knows are so important to driving the
future prosperity of the Welsh economy.
(Jarrow) (Lab) [V]
Analysis by the Resolution Foundation, based on the number of
households claiming universal credit or working tax credit in
April last year, found that 34% of working-age households across
the north-east stood to lose out on over £1,000 a year if the
uplift is cut, as currently planned, in April 2021. Unless I am
mistaken that is still the case, although the Chancellor said it
was at the end of the year in answer to an earlier question, so
maybe he can clarify that. Can I ask the Chancellor if he agrees
with me that it would now be unthinkable to cut this lifeline
given the ongoing significant impact the pandemic has had on
low-income families?
It is important to recognise some of the other things that we
have put in place for next year already, notably support for over
3.5 million vulnerable households with their council tax
bills—£150 each, worth £670 million in aggregate—but also
increasing the national living wage above inflation, at 2.2%,
providing about £350 of benefit to those on low wages. Those are
the kinds of things that this Government will continue to
champion.
(Carshalton and Wallington) (Con) [V]
Can I first welcome the furlough extension, as announced by my
right hon. Friend the Chancellor, which will give many Carshalton
and Wallington residents a great sense of peace of mind? However,
some businesses have been in touch with me with concerns about
the October cut-off date to be eligible to start furloughing
stuff, so can my right hon. Friend outline whether this decision
could be reviewed or what other support businesses can access to
help mitigate this?
The change in the date from the original spring date to October
will bring an additional 3 million people into the scope of
benefiting from the furlough scheme, and I know that is something
my hon. Friend will welcome. With regard to additional support,
he will know our comprehensive plan, whether it is discounted or
Government-backed loans, tax cuts, tax deferrals, VAT deferrals,
business grants, business rates holidays or discretionary funding
from local councils. All of that is available depending on a
business’s circumstances, and I would urge his businesses to look
online and see what they might be eligible for.
(Brighton, Pavilion) (Green) [V]
The Chancellor said earlier that there is “unity of purpose”
across this House. One area where it is clear there is unity with
everybody except for him is that more support is needed for the
excluded. It frankly beggars belief that he has yet again come to
this House with nothing to announce for them, so I urge him to
urgently look at the directors income support scheme for
directors of small limited companies, which has been on his desk
since November. There are also the recently self-employed still
left out in the cold, and freelancers, those who combine PAYE and
self-employment, and women who have taken time out because of
pregnancy all still utterly abandoned. I want to know how he has
the gall to continue pretending that he is doing enough for my
constituents and the millions like them who are still left in
poverty and despair.
With regard to our support for the self-employed, it is worth
noting—not that you would know it from what the hon. Lady said—
that almost 3 million people have benefited to the tune of around
£20 billion. I do believe that that is comprehensive. It is
certainly more comprehensive and generous support than has been
provided by almost any other country I can find. Of course, we
always look at other suggestions we receive, and I will continue
to do that.
(Barrow and
Furness) (Con) [V]
As the pandemic continues, it is only right that the Government
provide further financial assistance to support jobs and
businesses. That is why I welcome the £4.6 billion of funding for
grants that was announced last week, which will benefit people
and businesses across Barrow and Furness. However, does my right
hon. Friend agree that in the long term we have to return to
sustainable public finances in order to build resilience to
similar shocks in the future, whatever they may be?
My hon. Friend makes an excellent and insightful point. This is
about resilience in the public finances—he used the word well. We
have faced two supposedly once-in-a-generation shocks in the
space of 10 years and we do not know what the future holds. What
we do know is that we want to encounter the next shock that comes
along in as strong a position as possible, because ultimately
that will enable us to respond in as comprehensive and generous a
way as we have here. That is why, over time, we must rebuild our
public finances to that position of, as he said, resilience and
strength.
Madam Deputy Speaker ( )
I wonder if hon. Members really do believe in being fair to
everyone. If they do, I implore them to ask short questions—do
not make statements and do not make speeches. This is a statement
by the Chancellor. It is an occasion for a quick question. I have
36 people to get in and 25 minutes in which to do it. Shall we
see whether Members really do want to be fair to everybody else?
(Cambridge) (Lab) [V]
Behavioural scientists are clear that to get people to
self-isolate requires that they have the capacity, motivation and
opportunity to do so. So far, frankly, the £500 on offer is not
achieving that. What assessment has the Chancellor made of that
scheme, and what is he planning to do to improve it?
I am not aware of any science or feedback showing that that
scheme is not doing what it needs to do. The £500 is
means-tested, it provides support and it has increased in real
value as the number of days people are required to isolate has
reduced.
(Elmet and Rothwell) (Con) [V]
A constituent approached me to say that many supply teachers
working through agencies are not being furloughed because schools
are open to key worker children, yet those supply teachers are
not being called into schools because most year groups are
learning remotely. Will my right hon. Friend look at flexibility
within the furlough scheme in this area, similar to last time, to
assist agency workers?
I would be very happy to look at the specific point my right hon.
Friend raises.
(Denton
and Reddish) (Lab) [V]
I shadowed the right hon. Member for Old Bexley and Sidcup
(), and I wish him successful treatment and a
speedy recovery.
About 130,000 individuals across Greater Manchester are
ineligible for any support—that number is second only to London.
Many of them have been shut out of support since day one, which
is almost a year ago now. Will the Chancellor confirm today that
he is actually looking at this important issue, and confirm
whether more support for this group is actually coming their way?
As part of the announcement made last week, half a billion pounds
of discretionary funding is being made available to local
councils. That comes on top of the £1.1 billion that was made
available at the end of autumn last year. If local councils want,
some of that funding can go to support the very people the hon.
Gentleman is talking about.
(Kensington)
(Con)
Financial services are very important to my constituency and to
the country as a whole. I welcome the free trade agreement, but
clearly there is more to be negotiated on financial services.
Will my right hon. Friend outline how we can retain the strong
relationship with Europe on financial services, while retaining
autonomy to adapt the industry to our needs?
I praise my hon. Friend for being a fantastic representative of
her constituents when it comes to financial services. I have
enjoyed my conversations with her, and I look forward to working
with her and the industry to ensure that we maintain a close
relationship with the EU, but also that we look to capitalise on
the new opportunities, making sure that London remains a
pre-eminent global centre and that the UK does its bit. Whether
it is on greening the financial system or taking advantage of new
digital technologies, we must lead the world, and I know that she
will help me to do that.
(Gower) (Lab)
The Welsh Government have not hoarded money meant for Welsh
businesses, and it is dangerous to hear the right hon. Member for
Preseli Pembrokeshire () saying such
things in the Chamber. They are getting help to those businesses
while the UK Government make a big fanfare over new help that
turns out not to be new help at all. Will the Chancellor tell me
and my constituents how much new money for Wales he has announced
today?
I am happy for the hon. Lady to refer to the answer I gave
earlier, but if she would prefer that, rather than give up-front
funding guarantees and certainty to the devolved Administrations
in a pandemic, we returned to piecemeal funding by announcement,
she should please write to me and let me know. The Welsh
Government have received over £5 billion in up-front funding
guarantees, and as we make announcements it is right that we
highlight the amount of additional Barnett funding that flows
from those announcements, so that that can be netted off against
the guarantee.
(South West Bedfordshire) (Con) [V]
I am delighted to learn that local authorities will be receiving
additional cash at the end of this week. Could I please ask the
Chancellor to do everything possible to help local authorities to
get that money out of the door as quickly as possible, to help
businesses’ cash flow?
I agree with my hon. Friend about the importance of speed. We try
to keep the guidance the same, and that helps local authorities.
Indeed, the guidance for the £500 million discretionary funding
will be the same as for the £1.1 billion, and that will help
local authorities. They should have the cash by the end of this
week at the latest, and I too urge them to get it out as quickly
as possible.
(Oxford
West and Abingdon) (LD) [V]
As in many places, local pubs and bars in Oxford, West and
Abingdon on their knees. One of my constituents, a bar owner, has
told me that her business is slowly going under and that she
stands to lose everything. The £9,000 is of course welcome, but
the concern is that this will delay rather than stop them going
under, so will the Chancellor step in and save our locals by
scrapping the rateable value cap for pubs, allowing them to
access the retail, hospitality and leisure grant fund, offering
rent holidays during times of enforced closure and guaranteeing
now to extend the furlough scheme for as long as it is needed?
The hon. Lady makes a good point about the importance of our
local pubs. There is no rateable value cap on the grant. That was
the case in the earlier iteration in the spring, but the latest
grants are done by rateable value, and they are available for
businesses with a rateable value in excess of £51,000. The
businesses also benefit from the business rates holiday, so I
hope that helps, but I share her sympathy for the industry. I
know it is difficult, and we must do what we can to help them.
(Birmingham, Northfield) (Con)
The Chancellor will know that the furlough scheme and the
self-employed scheme have helped to protect many millions of jobs
across the UK and many livelihoods across the Birmingham,
Northfield constituency, but as he said, unfortunately not every
job is going to be able to be protected during the pandemic, so
can he outline the measures he is taking across Government to
help to support those who find themselves unemployed?
I can give my hon. Friend my assurance that the Government’s No.
1 economic priority remains jobs and trying to help people into
employment. To that end, we have created various schemes and put
billions of pounds towards them, whether through doubling the
number of work coaches, the restart scheme for the long-term
unemployed or, indeed, our kickstart scheme to help 250,000 young
people at risk of becoming unemployed to find new work in
Government-funded jobs. I look forward to working with him and
delivering all those vital initiatives.
(Aberdeen North) (SNP) [V]
A number of people are still in childcare voucher schemes rather
than having moved to tax-free childcare. A number of them did not
realise, at the start of the pandemic, how long the impact would
last, and they have now racked up large balances that they will
not be able to spend before their child no longer needs
wraparound childcare. Will the Chancellor please look at the
people who have these large balances and consider putting in
place some flexibility, or asking employers to put in place some
flexibility, because they have ended up in this situation through
no fault of their own?
I am not familiar with the specific details that the hon. Lady
raises, but I can see the logic of what she is saying, if I
followed it correctly. I will happily have a look at that and
write back to her.
(Bury North) (Con) [V]
I welcome the Chancellor’s announcement of an extra £500 million
of discretionary funding for local authorities in England. Will
my right hon. Friend confirm that councils have absolute
discretion in the use of those moneys, including, if they so
choose, the provision of grants to self-employed workers or sole
traders whose businesses are based at their home address?
I can give my hon. Friend the assurance that the grants are meant
to be discretionary. It is for local authorities to make the
decisions at their discretion as to how best support their local
economies. The guidance should remain the same as it was before.
I believe it gives local authorities the discretion they need.
(Manchester, Gorton) (Lab) [V]
A supply teacher in my constituency contacted me last week after
being told she would not be furloughed despite being unable to
work while schools are closed. Last summer, less than half of
supply teachers were furloughed. In some cases, they were
furloughed at just 80% of the national minimum wage. What steps
will the Chancellor now take to ensure all supply staff are able
to access the furlough scheme during the lockdown and prevent
them falling through the gaps?
If I follow the question correctly, I think the guidance has
already been clarified. It was already in place that childcare
was a reason people could be furloughed. With regard to supply
teachers, I will have a look at what the guidance says.
(Fylde) (Con)
[V]
I welcome the continuation of the unprecedented support provided
by the Chancellor throughout this crisis. While looking forward
to economic bounce back, may I call on my right hon. Friend to
extend the business rate holiday and VAT reduction, which have
been absolutely critical to the tourism and hospitality sector in
Fylde?
I know how important the tourism and hospitality sector is to my
hon. Friend’s constituency and what a fantastic champion he is
for it. I know how important those initiatives have been. Of
course, future decisions of that magnitude will be for the
Budget, but I will take what he says into consideration.
(Aberavon) (Lab) [V]
Community union self-employed members have raised serious
concerns about discrimination in the self-employment income
support scheme for those who have taken maternity or parental
leave. They point out that eligibility conditions and calculation
methods chosen by the Chancellor discriminate against women
because they do not exempt periods of maternity leave. What steps
has the Chancellor taken to ensure that all parents, and women in
particular, are not penalised in their income support payments
for having children?
The guidance on eligibility for the particular circumstances the
hon. Gentleman mentions has been published. It is designed to be
fair to everyone and to take into account, as best we can,
everyone’s varying and different circumstances.
(Bridgend) (Con) [V]
My constituency contains an award-winning nature reserve at
Kenfig and some of the best surfing beaches in the world. The
town of Porthcawl is a popular tourist town and Bridgend itself
is an historic market town. It is no surprise, therefore, that
the impact of covid-19 on the hospitality sector has really hit
my constituents hard. Many have written to me recently to ask me
to support UKHospitality’s recommendations on how the Government
can help, in particular with an extension of VAT and business
rates support. Does my right hon. Friend agree with me that every
step possible should be taken to support this vital sector?
My hon. Friend is right about the importance of this vital sector
to our local communities and our economy, with hundreds of
thousands of businesses and millions of people employed. Like
him, I am keen to see it spring back to its former glory. I look
forward to hearing from him about how best he thinks we can
support that industry into the future.
(Coventry South) (Lab) [V]
Contrary to the Government’s briefings, the problem with lockdown
is not support bubbles or exercising with a friend. The key
problem is that people are still being forced into work, with too
many non-essential workplaces open and statutory sick pay so low
many cannot afford to self-isolate when they need to. Will the
Chancellor provide the economic support necessary for people to
stay at home by ensuring that all non-key workers who cannot work
from home are furloughed on full pay, and by raising sick pay to
the real living wage at £330 a week?
With the greatest respect to the hon. Lady, I think it is best
that we listen to the scientists with regard to the appropriate
health restrictions. She will have heard the chief medical
officer this morning giving his view on the right approach to
other restrictions. With regard to support, the furlough scheme
remains one of the most generous and comprehensive anywhere in
the world. It is something that I am proud of and which I know is
providing security to many millions of people at this very
difficult time.
(Tatton) (Con) [V]
The Chancellor will know that the Blue Collar Conservatism group
was instrumental in persuading the supermarkets to return the
business rates relief that they did not need; we asked them to do
so on the basis that there were many who had gone without
support, and they agreed to do so on that basis. Will the
Chancellor therefore ensure that that £2 billion returned by the
supermarkets goes to those who have so far been excluded from
support? They cannot go another three months without any income.
I pay tribute to my right hon. Friend’s tireless campaigning on
this issue. She is a great advocate for the cause. She will know
that we have just provided over £4.5 billion of support to many
small businesses up and down the country, which I know she will
warmly welcome and has called for. Indeed, part of that is half a
billion pounds of discretionary funding for local authorities to
support local businesses, many of which may include the people
she has talked about who will be eligible for that support.
(Liverpool, Wavertree) (Lab) [V]
For 10 months, 3 million people have been forgotten or excluded
by this Government, including several of my own constituents,
such as Graeme Park, and Karen and Matthew Cox. The Prime
Minister said last week that these people will be listened to and
that support packages are there to protect people, so can the
Chancellor tell us clearly today what package of support is
actually available for these groups, how much is available and
when will people be able to access them?
Rather than me recapping every single thing that we have done,
let me say that it is worth bearing it in mind when the hon. Lady
talks about 3 million people that for over half of those people
self-employment is not the primary source of income; they are not
majority self-employed. From memory, the average income from
self-employment of those individuals is around £2,000. It is
actually the case that many of the other things that we have done
will be of more significant support to them. Indeed, the majority
of them are actually employed and can benefit from our furlough
scheme, so it is not right to say that they have received no
support. We have put in place a range of different things, and
many people are benefiting from them.
(Colne Valley) (Con) [V]
The hospitality supply chain is crucial to the sector: food and
drink producers, dairies, breweries, wholesalers and many more.
Will the Chancellor look at extra support for hospitality supply
chains, such as with VAT and business rates, so that when the
vaccine allows hospitality to reopen again, there is a supply
chain there to support them?
My hon. Friend is right about the supply chain. He will know that
much of the supply chain also supplies the on-premises trade as
well as the off-premises, so those businesses will have some
trade during this period, but he is right that we must ensure
that it is there for the recovery. The supply chain will, of
course, benefit from our furlough scheme, which is very
comprehensive in its eligibility and very generous. I thank him
for his points and will of course bear them in mind.
Madam Deputy Speaker ( )
Let us see if we can go a bit faster to try to get everybody in.
(Livingston) (SNP) [V]
The Young Women’s Trust found that because of covid 1.5 million
women are losing income; 69% are claiming benefits to the first
time; half of young mums are unable to keep or find employment
because of childcare costs; and a third of women will not report
sexual harassment for fear of being fired. Can the Chancellor
therefore tell me how his Government can possibly continue to
justify the five-week wait, have statutory sick pay at a
disgracefully low £94 a week, and exclude many female business
owners from help? Will he take proper action for women, who are
bearing the brunt of this pandemic?
All the support that we have put in place is blind to gender; no
one is excluded on the basis of gender and I do not think it is
fair to suggest otherwise. One of the reasons that I have been so
keen to try to support the hospitality industry throughout this
period, and to encourage people to be able to go back to it when
it was open, was because of the social justice aspect. It is an
industry that disproportionately employs women and other groups
that we want to try to see protected. That is why it is a very
important industry to me, and we must get it back to its former
glory.
(Dudley North) (Con) [V]
While politics is played with narratives around council tax
increases, will the Chancellor confirm that the most important
thing right now is support for local authorities to deliver
public services in constituencies like mine? Will he please
outline the steps that the Treasury is taking to deliver that
support?
My hon. Friend is right. We have provided over £3 billion of
additional funding for local authorities next year to help them
get through coronavirus in different ways and, within their
day-to-day budgets, an additional £300 million of adult social
care grant. They are seeing one of the highest core spending
power increases in a decade. With regard to the political points
that he knows others are trying to make, it is probably worth
bearing it in mind that under the last Labour Government council
tax rose on average by about 6% every year; under this
Conservative Government since 2010, it has risen so far by just
over 2%.
(Upper Bann) (DUP) [V]
The Chancellor of the Exchequer will share my desire to see
economic recovery right across the United Kingdom. I thank him
for the support provided to sustain businesses in this difficult
time. However, in addition to covid-related challenges,
businesses in my constituency are being hampered in trading by
the chaos created by the Northern Ireland protocol. A local
haulage company reports that protocol-related difficulties cost
it an additional £48,000 last week. Another business in my
constituency is being hit by 20% VAT on bicycle parts. Our
second-hand car industry faces wipe-out because of the VAT margin
scheme. The protocol spells economic harm for business and
consumers in Northern Ireland. What will the Chancellor and his
Government do to remove the barrier to economic recovery and free
and unfettered trade within the United Kingdom?
I am sorry to hear the various examples that the hon. Lady gave.
I hope that the Trader Support Service can be of some assistance
to her small and medium-sized businesses. We have funded it to
the tune of about £200 million to provide support for the change
of circumstances, and I know that 25,000 companies have already
signed up and are benefiting from quite speedy support. I will of
course keep that under review and ensure that it is doing what it
needs to do.
(Burton)
(Con) [V]
I thank my right hon. Friend for providing grants of up to £9,000
to businesses forced to close due to the new national
restrictions. I know those businesses in retail, hospitality and,
in particular, the pub industry in my constituency of Burton and
Uttoxeter are grateful for that safety net. Will he continue to
review the support available to them to ensure their long-term
survival and growth as we come out of the pandemic?
I can give my hon. Friend that assurance. Hospitality is such an
important sector for our local communities and indeed our
national economy. I cannot comment on future Budgets, but I will
bear what she says in mind. She can rest assured that I will do
what I can to support the hospitality industry and ensure that it
can drive our recovery.
(City of Durham) (Lab) [V]
Last week, the Chancellor graced Members of this House with a
90-second video on Twitter announcing support for the retail,
hospitality and leisure sectors. While I look forward to him
delivering the Budget on TikTok, those gimmicks leave businesses
in the dark through a lack of scrutiny. Now that he has been
freed from Twitter’s time limits, will he tell struggling
businesses in my constituency just how long they need to make
those grants last?
The grants we have put in place are one-off but can help
businesses through to the spring. Additionally, they will, of
course, continue to receive the monthly grants of up to £3,000,
which will be paid throughout. That means that, for example, over
the next three months, a business could receive up to £18,000 in
cash support. We will, as the hon. Lady said, have a Budget on 3
March, before that time elapses, at which point we will set out
the next stage in our economic response to coronavirus.
(Bournemouth West) (Con)
My right hon. Friend the Chancellor knows—not least from the
conversations he had last November with businesses in my
constituency—how heavily our local economy depends on the
hospitality sector and how hard hit it has been. Will he give me
and the sector an assurance that he will look sympathetically at
its calls to extend the lower rate of VAT and the business rate
holiday? What message has he got for the sector about its
importance to the UK economy and to the wellbeing and quality of
life of our citizens?
I thoroughly enjoyed my conversation with my right hon. Friend’s
local businesses. He mentioned exactly the right point: quality
of life. This is not just about our economy and jobs; this
industry is so vital for our wellbeing, and it brings spirit,
life and vitality to our local communities. He can rest assured
that I will want to continue supporting the industry, as I have
done in the past, and I will bear what he says in mind for future
Budgets.
(Blaydon) (Lab)
A failure to make the £20 uplift to universal credit permanent
would have a disproportionate impact on families across the
north-east, which has the highest rate of unemployment and the
second highest rate of child poverty. Will the Chancellor now
commit to make that £20 uplift permanent?
The hon. Lady, for whom I have a lot of respect, mentioned two
things: unemployment and child poverty. We know that the best way
to ensure that children do not grow up in poverty is for them not
to grow up in a workless household; indeed, the rate of poverty
among children who are not in workless households is five times
lower. Work—removing unemployment—is the best, surest and most
sustainable way out of poverty, which is why this Government have
backed with billions of pounds our various initiatives to support
people into work, which I know she will support, whether that is
the restart scheme, the kickstart scheme, doubling the amount of
work coaches or increasing the incentive for people to take on
new apprentices. Those are all the surest ways to help people out
of poverty, and that is why we are committing billions of pounds
to that end.
Madam Deputy Speaker ( )
We are officially out of time, but I will keep this running for a
few minutes longer if Members will be decent and be quick. There
are two more items of business, and it is simply not fair on
other Members later in the day if this item of business takes too
long.
(Romsey and Southampton North) (Con) [V]
Retraining opportunities will be a crucial part of our economic
recovery. I have been really impressed by companies such as
Openreach, which has set a promising target for more women in its
employment programmes. Will my right hon. Friend the Chancellor
look at making sure that women are not excluded from the economic
recovery?
My right hon. Friend is absolutely right, and I have enjoyed my
conversations with her on this topic. We want to make sure that
people can find new opportunities, which is why we have funded
companies with bonuses to take on new apprentices, as well as
providing a universal entitlement to a level 3 qualification for
the 37% of our adult population that sadly does not have one, and
traineeships also provide young people with a start into work
experience and then a job interview. Those are the kinds of thing
that help people find economic opportunity, and we will make sure
that women benefit equally from all of them.
(Rochdale) (Lab) [V]
Amy Pierce, the director of a small company in my constituency,
was doing well until the pandemic. Since then, her turnover has
dropped by 40%, but her costs have not. She has now had to lay
off her staff, which is massively regrettable. What can the
Chancellor say to small businesses like that to assure them that
the employment base and the economic base will be there in towns
such as Rochdale when the pandemic ends?
I am incredibly sorry to hear about the example of the hon.
Gentleman’s constituent, which will be mirrored by many others up
and down the country. As I said in my statement, the restrictions
we have had to put in place have taken a significant economic
toll on the country. Hundreds of thousands of people have lost
their jobs, and businesses are suffering. We have tried to
protect as many as possible. It is not possible to protect all of
them, but with the support that we have put in place, I am
confident that we are helping many businesses, protecting many
people’s incomes and saving many people’s jobs. I hope that his
constituent’s business and many others can bounce back strongly
once we are through this.
(Epsom and Ewell) (Con) [V]
I very much welcome the Chancellor’s substantial grant support to
smaller hospitality businesses in my constituency, which will at
least give them a chance of seeing through this difficult period.
I also represent a constituency with a large number of small
travel businesses that depend on the revival of the travel
industry and, in particular, the aviation sector. As he prepares
for the Budget, will he look at any way he can to help that
industry and that sector get back on their feet as restrictions
are lifted, hopefully in the spring?
My right hon. Friend is absolutely right to highlight the
importance of the travel sector to our economy. I was pleased to
work with him to help to put in place a test and release policy
for international travel, which was helping, and to provide
business rates support to our many airports—I know that up to £8
million per airport has been of value. I will continue to listen
to him and others to see what we can do to support the economy as
we recover out of this crisis.
(Lewisham West and Penge) (Lab) [V]
We are nearly a year on since the Chancellor rightly introduced
the self-employed income support scheme, but despite his having
had months to fix the gaps that have wrongly excluded millions,
he is refusing to do so. The right hon. Member for Tatton
() asked the Chancellor whether the £2 billion in
business rates relief that is being returned to the Treasury from
supermarkets and other large shops could be used immediately to
support those who have been excluded and received nothing; will
he now answer that question?
The hon. Lady’s party called specifically for that money to be
used to support small businesses and high streets; indeed, not
only have we just done that but we have done it to the tune of
£4.5 billion, not the £2 billion that her party was calling for.
(South Cambridgeshire) (Con) [V]
Green finance has a crucial role to play if we want to build back
better and transition to a net zero economy by 2050. The UK has a
critical role in the development of the sector internationally,
not just as a global leader in finance but with this year’s
presidency of COP26 and chairmanship of the G7. Will the
Chancellor outline for the House what he is doing to develop the
vital green finance sector?
My hon. Friend makes an excellent point: not only are we leading
in the world in reaching our net zero targets but we are a global
financial centre, and we have combined the two to lead the
greening of the financial system, which is an opportunity for us.
We are going to issue a sovereign green bond this year and will
be the first major economy to make mandatory the climate-related
financial disclosures recommended by the international taskforce,
which will help to cement our global leadership. I look forward
to hearing from my hon. Friend the other things that we can do in
this vital year for our journey to net zero.
(Normanton, Pontefract and Castleford) (Lab) [V]
A Castleford constituent—a single mum who works at a major
company’s distribution warehouse—has been told that her employer
will not furlough her while schools are closed and that she has
to take six weeks’ unpaid leave that she cannot afford. The
school has said that she cannot have a place as it is overwhelmed
with key worker applications. Does the Chancellor agree that the
employer’s response is completely unfair? What should my
constituent do now?
I am more than happy to receive a letter from the right hon. Lady
about the particular situation that she describes, but I hope she
will understand—she will know this, having been in a similar
position—that it is hard for me to comment on the specific
circumstances between an employee and employer. The furlough
scheme can be used for the circumstances that she described.
Obviously, the school will be better placed than I am to
determine whether the constituent in question is a key worker,
but if the right hon. Lady writes to me, I will be more than
happy to follow up on her questions.
(Henley)
(Con) [V]
I add my support to the cause of directors who take income as
dividends. As a former inspector of taxes, I have heard what Her
Majesty’s Revenue and Customs has said and do not entirely agree
with it. Will my right hon. Friend agree to meet me to discuss
the options available to deal with directors who take income as
dividends?
My right hon. Friend the Financial Secretary to the Treasury has
met several groups and heard representations on different
proposals. I am not aware of another country that has found a way
to support people’s dividend income, but if my hon. Friend knows
of one, I would be delighted to look into it if he sends it in.
Dame (Wallasey) (Lab) [V]
Does the Chancellor believe that the £22 billion cost of Serco
test and trace has been spent in a way that represents the best
value for money?
The testing capacity that we have in this country has
considerably increased from where it was. The House will remember
that at the start of this crisis it was 10,000, and now we are
doing several hundred thousand a day, so that is a substantial
increase, and testing can play a part in reducing the spread of
transmission. Obviously, given the new strain of the virus, we
have had to put in place new restrictions, which is
disappointing, but I still believe that test and trace can play a
role in suppressing the spread of the virus, especially as we
come out of this crisis. The hon. Lady is right to hold me and
others accountable for every pound of taxpayers’ money that we
spend and I am sure will continue to do so.
(Guildford) (Con) [V]
I have exciting, innovative companies of tomorrow located in
Guildford, and they will be crucial to our economic recovery.
Will my right hon. Friend ensure that these companies remain at
the centre of his future plans?
My hon. Friend is right: our innovative companies are a great
strength of the UK economy compared with others and they will
help drive our recovery. That is why we put in place the future
fund, which was an unprecedented intervention to help 1,000 of
our fastest-growing start-up companies with match funding.
Innovate UK also made available £500 million of additional grants
and loans through its innovation schemes, and most recently, we
have committed extra funding for our start-up loans scheme next
year. Taken together, it is a significant vote of confidence in
those innovative companies, and I look forward to hearing from
her other ways that we can support them to help drive our
recovery.
(Linlithgow and East Falkirk) (SNP) [V]
Last week, when I challenged the Prime Minister over the lack of
support for the 3 million excluded, he claimed that they had “not
been excluded”, so can the Chancellor spell out what is being
done to make the PM’s word a reality, as I did not hear anything
today that will give meaningful support to my constituents who
have had 10 months of zero income or Government help?
It is just not right to say that people have not been able to
receive any support. Obviously, I cannot comment on the
individual circumstances of every single person, but we have put
in place £280 billion of direct support in a multitude of
different ways, and then there is additional support that is not
even fiscal—for example, mortgage holidays, which now one in six,
or one in seven mortgage holders have taken advantage of. So yes,
it may be the case that people have not been helped in the exact
way they wanted, but with £280 billion of support in literally 20
different ways, this Government are doing what they can to
provide reassurance and security to millions of people and
businesses through this difficult crisis.
(Dwyfor Meirionnydd) (PC) [V]
The Welsh hospitality sector employs over 8.5% of the Welsh
workforce and is even more important in rural areas, such as
Dwyfor Meirionnydd, where hospitality provides 27.3% of
employment. Today’s statement provided no new money and no
clarity for struggling hospitality businesses that need to be
able to make informed decisions in the coming months. Will the
Chancellor therefore confirm that there will be no further
announcements of extra funding prior to the March Budget?
The Welsh Government have received over £5 billion of up-front
funding guarantees to support their local economy. I hope they
will use it to do exactly that, but also, Welsh businesses will
benefit from UK-wide interventions—for example, our furlough
scheme, our loan programme or, indeed, some of the VAT
reductions—and I have said that all our support now extends
through to the spring. We will have a Budget on 3 March, where we
will set out the next stage of that economic response to
coronavirus.
