Labour’s Shadow Chancellor Rachel Reeves and Shadow Business
Secretary Jonathan Reynolds have written to and outlining the urgent need to
support businesses facing ‘closure by stealth.’
Following the Prime Ministers press conference advising people to
‘deprioritise social contacts’ Labour have called for immediate
clarity on the support offered to business facing a wave of
cancellations and have a plan to prevent workers paying the
price.
In the letter Reeves and Reynolds press the Chancellor and
Business Secretary to support public health measures by
supporting businesses facing an unprecedented loss in trade:
"It was with great concern that we both met with business leaders
and major trade bodies yesterday, and learnt that many of them
hadn’t had proper engagement from government on how plan B and
the necessary restrictions resulting from Omicron would affect
them.
"Since then, the public have been told to 'de-prioritise social
contact'. Following the science is crucial, but this will hit
businesses and workers hard, especially in sectors like
hospitality and leisure. Businesses face a perfect storm of
cancelled bookings, rising costs and staff shortages.
"Businesses and their employees have put up with so much from
this Government. It is time the Government came forward with
their plans to ensure our great British businesses and their
workers have the clarity and support they need to weather
this storm."
Ends
Notes to Editors
Text of full letter
Dear Rishi, Kwasi,
It was with great concern that we both met with business leaders
and major trade bodies yesterday, and learnt that many of them
hadn’t had proper engagement from government on how plan B and
the necessary restrictions resulting from Omicron would affect
them.
Since then, the public have been told to 'de-prioritise social
contact'. Following the science is crucial, but this will hit
businesses and workers hard, especially in sectors like
hospitality and leisure. Businesses face a perfect storm of
cancelled bookings, rising costs and staff shortages.
Businesses and their employees have put up with so much from this
Government. It is time the Government came forward with their
plans to ensure our great British businesses and their
workers have the clarity and support they need to weather
this storm.
Labour’s existing proposals to support business are pro-worker
and pro-business. This includes providing businesses with more
flexibility with debt repayments from pandemic-related government
loans so that they stabilise their business first, to increasing
small business rate relief, to supporting workers
with improving sick pay and strengthening self-isolation
support in the first instance.
In light of these concerns, we are writing to you today with a
number of urgent questions:
- What impact does the government believe the latest Covid
measures will have on different sectors of the economy?
- What assessment had the Government made on the economic
impact of the request to limit social contact on industry prior
to the Prime Ministers press conference?
- What is their plan to address that impact?
- How has the government worked with and listened
to businesses and trade unions in the most affected sectors
in recent months ahead of Plan B and meeting current Covid
challenges?
- Why has the government not improved sick pay and improved
self-isolation support?
- What assessment has the government undertaken on the impact
of isolation from rising cases on different sectors of the
economy?
- What steps has the government taken to stabilise essential
supply chains and public services?
- If further restrictions are needed and premises are mandated
to close, what economic support will businesses and workers
receive?
- What lessons have been learned from previous pandemic support
and will they be incorporated in any new additional support
packages including preventing fraud?
- Will the government guarantee that any new economic support
will include clear support for workers alongside businesses?
- Has the government made a revised assessment of the April
cliff edge for the rise in National Insurance
Contributions and VAT rise on business confidence?
- What provision has been made for testing to be available to
consumers and employees to allow regular testing, especially in
light of this weeks' shortages?
These are important questions that must be answered to restore
some certainty and trust with industry. There is an urgent need
to stop businesses closing by stealth and workers paying the
price.
Given the severity of the situation, we look forward to your
prompt reply.
Regards,
Shadow Chancellor of the Exchequer
Shadow Business Secretary
