← Back to House of Commons Debates
Covid-19: Government Support for Business
16 December 2021
Lead MP
John Glen
Debate Type
Ministerial Statement
Tags
EconomyTaxationCulture, Media & SportBusiness & Trade
Other Contributors: 33
At a Glance
John Glen raised concerns about covid-19: government support for business in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister announced that every eligible adult will receive a booster dose before the end of the year due to the highly transmissible nature of the omicron variant. He also mentioned moving to plan B in England to slow down the spread, and provided details on various support measures for businesses affected by the pandemic, including reduced VAT rates, business rates relief, additional restrictions grants, recovery loan scheme, eviction protections, cultural funding, and live events reinsurance schemes. The Government has pledged over £400 billion of direct economic aid during the pandemic, with extra funding to devolved Administrations.
Pat McFadden
Lab
Wolverhampton South East
Question
Asked about the Chancellor’s absence during a critical period, business impacts due to omicron, and requested measures such as proper sick pay, VAT rate continuations, supply chain maintenance, unused funds release from previous aid packages, and immediate support. Criticised lack of communication.
Minister reply
The Minister responded that the Chancellor has been engaged with businesses throughout the pandemic and will continue to do so despite his current trip. He highlighted past collaborative efforts on interventions for multiple sectors and noted ongoing discussions for additional measures.
Question
Asked about lifting revenues in the hospitality and entertainment industries, treating staff properly, and addressing revenue loss from unpostponable events.
Minister reply
The Minister acknowledged the need to address these issues and mentioned ongoing discussions with affected sector representatives. He noted £250 million of funds available through additional restrictions grants.
Chris Stephens
SNP
Glasgow North West
Question
The omicron variant is now present in all Scottish health boards, so I am sure the Minister will congratulate Scotland on being the first nation in the UK to vaccinate 50% of the eligible population with the booster jab. On Tuesday, during the First Minister’s address to the Scottish Parliament, the Treasury sent out a press release indicating that more covid support was coming, but it later backtracked and pulled it. In response to those erroneous claims, the Scottish Finance Secretary has written to the Chancellor seeking clarification. When should the Scottish Finance Secretary expect a reply? Do we have to wait for the Chancellor to return from California?
Minister reply
Of course, the devolved authorities will secure £77.6 billion next year, which is £12.6 billion more than this year. Just yesterday, £430 million of additional money was agreed with the Chief Secretary to the Treasury. The hon. Member should contact the Finance Secretary in Scotland to clarify what he is talking about, because that money was allocated yesterday by the Chief Secretary.
Theresa Villiers
Con
South West Hampshire
Question
Government policy has been clear that people can proceed with their Christmas socialising plans as expected. However, yesterday the chief medical officer said that people should limit social contact, which will clearly have a devastating effect on hospitality businesses. Can we have clarity about how people should plan their social contacts for Christmas?
Minister reply
The advice is clear: one should get the booster as quickly as possible—I did so on Saturday—take lateral flow tests and act responsibly. On Monday, I shall take my Salisbury team out for lunch.
Kevan Jones
Lab
North Durham
Question
Public health messages need to be clear and consistent, but last night the Prime Minister’s press conference was confusing and sowed turmoil in the hospitality sector. Another sector that is already hurting is small coach and bus operators, such as Stanley Travel in my constituency, who rely on Christmas and the new year for income to tide them over the fallow period of January and February. When the Chancellor comes back from his winter sun trip to California, will the Minister ensure that he does not forget the sector as we look at support in the coming months?
Minister reply
The right hon. Gentleman legitimately raises a point about the whole range of businesses affected. That is why the Government’s priority was to give local authorities maximum discretion in how to allocate funds. As the Chancellor has done yesterday, today and every day, he will continue to focus on the needs of the economy and businesses up and down the country.
Steven Baker
Con
Wycombe
Question
I am reassured that my hon. Friend the Minister will take out his team on Monday. Like him, I took a lateral flow test this morning. However, is it not the case that when officials give advice, it has a massive capacity to herd the public into particular behaviours? Therefore, while the Government have formally allowed hospitality businesses in particular to stay open, the reality in my constituency is that fantastic businesses such as The Old Queens Head in Penn and Tylers Green have seen massive cancellations. What reassurance can he give me that when officials speak—particularly from podiums at press conferences—they stay within the bounds of the policy decided by Ministers, and that what Ministers have decided takes into account the broad spectrum of collateral harms that follow from, for example, encouraging people not to mix together?
Minister reply
It is really important that we follow the best advice to get jabbed, take those lateral flow tests and wear masks. However, where we possibly can, we should also continue to engage with our local communities and support our businesses at this difficult time. Of course, that means that judgments have to be made, and people must take responsibility for their decisions in the light of that guidance.
Seema Malhotra
Lab Co-op
Feltham and Heston
Question
Small and medium-sized enterprises make up a significant proportion of the UK hospitality sector, and in recent days they have seen their footfall decline by as much as 40%, with one business I know of having had 79 cancellations in three hours. This comes at a time when businesses also continue to face high energy costs, supply chain disruptions and dropping consumer confidence. If we know this, it beggars belief that it is not clear to the Government. We have been meeting hospitality businesses since last week. Why is this meeting happening only today, and are the Government going to commit to come forward with a package of support that will give confidence for Christmas and the months ahead by the end of today?
Minister reply
As I have said, the Government are meeting a dozen representatives from the sector this afternoon to assess the latest situation and see what more can be done.
Andrew Murrison
Con
South West Wiltshire
Question
I sympathise with my hon. Friend and good neighbour in having to deal with data that is changing extremely rapidly. We know from South Africa and southern Africa that things may be changing, perhaps for the better, but we cannot rely on that, so the cautious words of Ministers and officials and the measures that we passed earlier this week are absolutely appropriate. Does my hon. Friend agree that, at a time of change such as now, it is important that the House is convened to debate the issues and that we should seek an opportunity next week and the week after for us to meet again so that Ministers can update the House on the current situation and change what is required one way or the other, if that is necessary? The public expect that level of leadership.
Minister reply
I thank my right hon. Friend and neighbour for his question. As I think he will appreciate from his time in government, some of those decisions come from those above me. It is critical that we are clear about what we are doing and why we are doing it, and the basis for the decisions that we are making.
Jeremy Corbyn
Ind
Islington North
Question
It is pretty obvious that during this crisis many workers have lost a lot of income, wages have gone down and living standards have gone down. For those who have to self-isolate or are sick and have to rely on statutory sick pay, SSP is wholly inadequate. Will he, in his consideration of business support, include an immediate substantial increase in SSP so that living standards can at least be maintained?
Minister reply
The Government will always look at such matters. We have maintained the self-isolation £500 payment, means-tested through local authorities, but we will obviously keep all matters under review.
Steve Brine
Con
Winchester
Question
Boosted this morning, Mr Speaker. Listening last night to the Prime Minister’s Downing Street conference, I could see why there was no statement to the House. No new Government policy was announced. Then Professor Chris Whitty answered a question from the BBC, and at a stroke, the chief medical officer changed Government policy and put this country—certainly hospitality, and Winchester’s hospitality bears this out from what I am hearing—into effective lockdown. May I ask—yes or no—whether what Professor Whitty said last night is now the policy of the Government, namely, that we should socialise carefully? What in practical legal terms does that mean? On support, because advisers are now running the show—I bet none of them run businesses facing complete ruin as a result of what was said last night—the Treasury is going to have to do more. Otherwise, we risk wasting the amazing support that Her Majesty’s Treasury gave last year. We are going to have to do more, whether or not we want to be here and whether or not I think we should be here, or businesses will face ruin and thousands of people are going to lose their jobs.
Minister reply
I have been very clear that we should get boosted, encourage our constituents to get boosted, take the lateral flow tests, wear masks and engage in normal activity as far as we can. There will not be a legal definition of what every individual should do on an individual basis, but most people will use common sense, and that is really important. I recognise the core point that my hon. Friend makes. The sector will need engagement from Government, and that is why Ministers—not advisers—will be engaging with that sector this afternoon.
Wendy Chamberlain
Lib Dem
North East Fife
Question
As the Father of the House said, we will all be receiving emails from businesses in our constituencies. One has written to me saying: “As with most businesses, a hospitality business is not run from one day to the next. Plans are in place for staff, events and orders.” These are businesses that were struggling already with accrued debt and a staffing recruitment crisis before omicron hit. Does the Minister agree that, if businesses are facing the same set of circumstances they faced when they received support from the Government, it is reasonable for them to expect the same level of support again?
Minister reply
We have put in a range of interventions, be that through loans, the furlough scheme, support through grants or support through reliefs from VAT and business rates. We will continue to look at what specific sectors are facing in these coming days and weeks, and we will act appropriately in light of those changed circumstances.
Bob Blackman
Con
Harrow East
Question
Clearly we are all going to have to live with covid for a long time to come. Businesses in my constituency report a double whammy: people cancelling bookings for hospitality and shortages of staff as a result of people testing positive for covid, doing the responsible thing and not coming in. Can my hon. Friend look at ways we can promote business and encourage people to take on short-term roles in the hospitality industry to cover these gaps? We need to provide incentives for business to continue.
Minister reply
As ever, my hon. Friend makes sensible points, and I will certainly look carefully at what he has said, and we will look at it light of the representations we receive this afternoon.
Question
The hon. Member for Winchester (Steve Brine) is right: the Government are trying to sing two different songs at the same time, and the result is a cacophony of mixed messages in everyone’s ears. This afternoon, the Chancellor needs not just to listen, but to act, because the taxes we are talking about are supposed to be taxes on business activity, not business inactivity caused by misfortune and Government mixed messaging. Will the Minister tell the Chancellor this afternoon when he meets him, albeit from California, that action is what is required now, not just listening?
Minister reply
I am grateful for the hon. Gentleman’s points. I have constant contact with the Chancellor, and I will make sure he is very aware of the range and strength of opinion in the House today.
Greg Smith
Con
Mid Buckinghamshire
Question
Welcomed commitment to meetings but highlighted businesses losing bookings and asked for clarity on support after the meeting.
Minister reply
Acknowledged difficulty of circumstances and stated intention to act appropriately based on data presented.
Question
Asked about swift financial response to health measures and urgent support for excluded sectors.
Minister reply
Replied that the Government has provided tailored support through grants, reliefs, and furlough scheme with discussions ongoing.
Martin Vickers
Con
Brigg and Immingham
Question
Highlighted wider impact of hospitality sector closures on related businesses like coach operators.
Minister reply
Acknowledged the wide impact and stated intention to discuss with a range of representatives.
Clive Betts
Lab
Sheffield South East
Question
Asked for urgent discussions with Transport Secretary on help for transport operators hit by reduced revenues.
Minister reply
Agreed to have discussions and noted existing significant support provided.
Kevin Hollinrake
Con
Thirsk and Malton
Question
Suggested revisiting VAT rates and the viability test for recovery loan scheme.
Minister reply
Acknowledged points made about the recovery loan scheme and stated intention to look carefully at measures.
Karen Buck
Lab
Question
Asked if Minister or fellow Ministers will meet representatives of theatre and live performance sector.
Minister reply
Confirmed continued engagement with the sector and noted existing support through culture recovery fund.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
Asked about support for Newcastle’s night-time economy affected by omicron variant.
Minister reply
Noted ongoing support measures such as local additional restrictions grant available to local authorities.
Tan Dhesi
Lab
Slough
Question
Asked about cancellations affecting hospitality and entertainment businesses and what support is offered.
Minister reply
Acknowledged the challenges faced by businesses and noted ongoing measures such as business rates relief.
Mike Kane
Lab
Wythenshawe and Sale East
Question
Asked if Minister agrees with Sacha Lord’s criticism of silence from Chancellor.
Minister reply
Disagreed.
Question
Asked about support for aviation sector needing extension and questioned understanding of situation by Treasury.
Minister reply
Noted significant support already provided including £12 billion loan guarantees through covid corporate financing facility.
Question
Highlighted impact of reinforcing work from home message on bookings for hotels and restaurants.
Minister reply
Acknowledged the situation and stated intention to engage in discussions to determine appropriate measures.
Lilian Greenwood
Lab
Nottingham South
Question
For more than a week, hospitality businesses and workers in Nottingham have been contacting me desperately worried about falling custom at what should be their busiest time of year. I have also heard from hair and beauty salons that are facing cancellations and wondering how on earth they will get by on reduced income when they are already struggling to pay back the loans taken out to survive lockdown. Why do the Government not seem to understand the urgency of the situation and what will the Minister now do to help?
Minister reply
What I will do is ensure that the hon. Lady’s point is passed to the Chancellor. I will also ensure that the engagement is as broad as possible across Treasury Ministers, so that the full impact of the evolving circumstances is reflected in our response.
Question
A few weekends ago, on Small Business Saturday, I was happy to host the first inaugural Ilford business awards. With about 1,500 nominations, it spotlighted the best businesses in Ilford. Recent research from the TUC shows that 647,000 workers in hospitality, retail and entertainment do not currently qualify for statutory sick pay and many will be incredibly anxious about what that means, especially given the contradictory advice from Government scientists and the Prime Minister in the past few days. Why have the Government let down the industry so badly? What will the Minister commit to doing to help support those industries today?
Minister reply
Today we are having meetings to discern exactly what the data is showing and what interventions we need to make going forward.
Dave Doogan
SNP
Angus and Perthshire Glens
Question
I think I am now the sixth Member to mention the coach sector, and I hope the Treasury is listening to hon. and right hon. Members in that regard. Robert Black’s of Brechin has contacted me to say that bookings have been disappearing like snow off a dyke since the omicron situation developed. Many others are facing booking cancellations right across the board. It is an omicron support package that we need—where is it coming from?
Minister reply
As I have said repeatedly, the Government are engaging across sectors. I recognise the depth and breadth of the impact of this variant, and we will look very carefully at what we need to do.
Chris Law
SNP
Dundee Central
Question
Despite the Treasury spin, last night’s Cobra meetings only confirmed that no money is coming to Scotland; the money announced by the Treasury on Tuesday was pre-announced money. The Scottish Government have already acted to deliver £100 million of funding to support businesses disrupted by health advice in Scotland. They want to give more but cannot due to restrictions on devolved borrowing. Does the Minister accept that this aspect of the devolution settlement is hampering the ability of devolved Governments to act as necessary?
Minister reply
I am sorry, but I cannot accept that. The Government have given an additional £12 billion to the devolved Administrations, which also benefit from reduced VAT, recovery loans and other UK-wide measures, along with the additional £430 million agreed this week.
Liz Twist
Lab
Blaydon and Consett
Question
Two weeks ago, on a very frosty north-east morning, I met small businesses at my business forum. They told me of their concerns about what might happen over the Christmas period with covid-19. They included beauty businesses and the Railway Tavern in Rowlands Gill. Will the Minister please urgently address the need to support our hospitality and personal care businesses throughout this situation?
Minister reply
The hon. Lady makes a very reasonable case about businesses in her constituency. As I have said, we will be engaging with the sector to come forward with appropriate interventions based on the data and experience across the economy.
Rachael Maskell
Lab Co-op
York Central
Question
One thing is clear: we can trust the word of the chief medical officer more than that of the Prime Minister, as the Government sleepwalk into another covid crisis. In York, we have a significant hospitality sector which is really struggling along with many other businesses. What steps is the Minister taking with HMRC to ensure greater flexibility for businesses so they can have longer to repay money to the Treasury?
Minister reply
As ever, the hon. Lady makes a reasonable point. We have to look at the range of interventions and ways that we could support the economy at this time. She raises an interesting area for us to focus on, and I am sure that will be a substantive area of considerations with the Chancellor.
Question
The music industry has been hit hard. The industry trade body LIVE—Live music Industry Venues and Entertainment—has concerns that while venues can technically stay open, they are haemorrhaging money and that will lead to permanent closures. Will the Chancellor maintain the current rate of VAT beyond March 2022? In addition to support packages, will the Government fix the insurance scheme for cancelled events to include pandemic-related cancellations?
Minister reply
I thank the hon. Lady for her question. The Government worked very closely with the sector in determining the parameters of the live events reinsurance scheme—I was involved in it myself—over late summer. That £800 million scheme will give events across the country confidence, but I obviously recognise that that needs to be kept under constant review, as all the measures do.
Jim Shannon
DUP
Strangford
Question
I thank the Minister for his answers to the questions and, clearly, for the commitment to financial support to help businesses. But may I ask him a question on behalf of travel agents and tour operators, which are again taking a very specific hit, not simply from cancellations but from frightened people being afraid to book for the future? Will he explore urgently a financial aid scheme alongside the one that is so clearly needed for the hospitality industry as a whole?
Minister reply
Throughout this pandemic, we have received representations from many sectors, introduced a range of interventions to deal with the challenges, and will continue to engage with sectors across the economy, including travel operators, which have been reflected in the concerns of Members across the House.
Shadow Comment
Pat McFadden
Shadow Comment
The shadow spokesperson criticised the Chancellor's absence and his ongoing trip to California despite clear business struggles due to omicron. He asked for measures to ensure proper sick pay, support for hospitality businesses, maintenance of supply chains, VAT rate continuations, release of unused funds from previous aid packages, and a timely, proportionate package of support. The shadow urged the Government not to abandon businesses in this difficult time.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.