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The Economy
24 September 2020
Lead MP
Rishi Sunak
Debate Type
Ministerial Statement
Tags
TaxationEmploymentCulture, Media & Sport
Other Contributors: 30
At a Glance
Rishi Sunak raised concerns about the economy 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 Chancellor Rishi Sunak provided an update on the UK's economic strategy amidst the resurgence of coronavirus cases. He highlighted that while there has been a three-month growth in the economy, the current situation requires adaptation to protect jobs through winter. The statement emphasised the introduction of a new 'jobs support scheme' aimed at helping businesses facing reduced demand by allowing them to keep employees on shorter hours with government wage support. This supports viable jobs, targets firms needing it most, and includes self-employed individuals similarly to previous schemes. Additionally, he announced extensions for loan repayment periods and deferral of VAT payments to provide more financial flexibility to businesses. Lastly, the Chancellor extended the lower VAT rate for hospitality and tourism sectors until March 2021. The total investment mentioned included £190 billion in initial support and over £12 billion specifically for test and trace measures.
Nicky Morgan
Con
Luton East
Question
How will the government ensure that businesses have adequate notice to prepare for changes in VAT rates affecting hospitality and tourism sectors?
Minister reply
The Chancellor stated that by cancelling the planned increase in VAT rates until March 2021, he aims to give businesses more time and certainty as they navigate through the winter period.
Stalybridge and Hyde
Question
Can you provide assurances that the new job support scheme will not be abused like the furlough system was, with some employees facing no choice but to accept reduced hours?
Minister reply
The minister emphasised that the jobs support scheme is designed to protect viable jobs and stated that employers must ensure a minimum of one third working hours. He also mentioned that there would be conditions to prevent abuse.
Gemma Doyle
Con
Taunton Deane
Question
How will the new job support scheme help businesses operating in multiple sectors, including hospitality and leisure?
Minister reply
The minister confirmed that the jobs support scheme applies to all UK employers regardless of their previous use of furlough, providing flexibility for multi-sector operations.
Anneliese Dodds
Lab Co-op
Oxford East
Question
I thank the Chancellor for his statement. I call for a system of targeted wage support that incentivises short-hours working and requires value for public money. Will the scheme include training incentives? Also, why is there no forward plan for those extremely clinically vulnerable to the disease?
Minister reply
The new scheme does incentivise shorter time working by subsidising the time workers are not working. There will be restrictions on larger companies in capital distributions and giving redundancy notices during the scheme's duration. Training has been increased through apprenticeship programmes, with a £2,000 incentive for businesses to take on an apprentice. The job support scheme is targeted at larger companies experiencing revenue declines due to coronavirus.
Mel Stride
Con
Central Devon
Question
I broadly welcome the statement and encourage the focus on employment, loans, and pay-as-you-grow schemes for SMEs. Will gaps in support for self-employed people be addressed? Can I meet you to discuss options?
Minister reply
The new measures include an extension of existing support grants for the self-employed, which is unique compared to other countries. The deferral of income tax self-assessment will also benefit self-employed small businesses.
Alison Thewliss
SNP
Glasgow Central
Question
Scottish National party Members are glad that the Chancellor has accepted the need to extend support, but it comes very late in the day and is little comfort to those who have already lost their jobs due to the impending end of the furlough scheme. Industry, trade unions, the Treasury Committee, people across the country and hon. Members across parties in this House have been pleading with him for months now, and it feels as if it is only the latest spike that has prompted his action. Coronavirus is not done with us yet. The furlough scheme has saved jobs and kept people paying their bills and mortgages. It has been incredibly important and it is a shame that the Chancellor is ending it at the end of next month. Hospitality, travel and tourism, aviation exhibitions, culture and performing arts, even travelling showpeople, and a host of others cannot go back to normal work because the Government have placed restrictions on their businesses. Those jobs and those businesses are viable—it is not for the Chancellor to decide the viability of businesses. Ending the scheme put 61,000 Scottish jobs at risk. His measures on the pay-as-you-grow scheme recognise that many businesses have deferred payments and have mounting debt. However, the problem for many businesses is not income deferred, but income lost completely, so will he go further and convert those loans to grants and equity, to give companies a bit more certainty about their future? We welcome the hospitality and tourism VAT cut, but will he reassess that in March and perhaps consider keeping it in place permanently to help those businesses pick up, hopefully, through an improved situation next summer? There is nothing here, nothing whatsoever, for those who have been excluded from existing support schemes—for freelancers, the Forgotten Ltd, the pay-as-you-earn employees, the new starters, the women on maternity and all those who have had not one penny piece from this Government for six months. The Chancellor cannot say he does not know that that is a problem, although he still refuses to meet them. How dare he say that these 3 million people should be left high and dry with nothing? Will the Chancellor introduce further conditions to prevent unscrupulous employers from exploiting the new schemes as BAE and others have done? Will he support the fire and rehire Bill from my hon. Friend and colleague the Member for Paisley and Renfrewshire North (Gavin Newlands), which would prevent that exploitation in future? The Chancellor did not have the courtesy to lift the phone to the Cabinet Secretary for Finance in the Scottish Government, Kate Forbes, or her counterparts in Wales and Northern Ireland, to let her know that he plans to scrap the autumn Budget. They found out on Twitter. It is not the first time this Government have had a lack of respect for the devolved institutions, because that happened last year too. Does he appreciate the very difficult situation he has created? With no access to the fiscal levers and no clarity on the funding settlement, he has tied both of Kate Forbes’s hands behind her back. What does he intend to do about that?
Minister reply
I think the hon. Lady is continuing to ask for an extension of the furlough scheme, but fundamentally I do not believe that that would be the right thing to do. At this stage of the economic recovery it is better that our support is targeted and focused on supporting viable jobs in our economy, and that means a new approach. Extending the furlough and allowing people to be at home full time is not the right approach in this phase of the economic crisis. Our new scheme will ensure that we provide support to those who need it most and protect as many viable jobs as possible in many of the industries she mentioned. The hon. Lady asked about conditions. I agree with her that there should be conditions on larger companies accessing support from the Government for wage protection. There will be conditions on capital redistributions and on the ability to provide redundancy notices to employees while they are on the scheme, and, in the first place, limiting the eligibility for large companies to those that are most in need. On dialogue with the Scottish Government, I am pleased to say that the Chief Secretary to the Treasury speaks regularly with his counterparts, as I believe he will be doing very shortly. There is a well worked process for how devolved nations’ budgets are set. There is absolutely no requirement for a UK Budget to be done beforehand. Indeed, that was not the case earlier this spring. We will have Office for Budget Responsibility forecasts later this autumn. On the basis of those forecasts, the normal work will be done with our counterparts in the devolved authorities to ensure that they can set the budgets they need.
Douglas Ross
Con
Ochil and South Perthshire
Question
Over 900,000 Scottish jobs have been protected as a result of the UK Government’s furlough scheme during the worst of this crisis, ensuring that over the past six months hundreds of thousands of Scottish families have continued to maintain a regular income. I welcome the further support announced by the UK Government today. Will the Chancellor of the Exchequer outline how the UK Government measures will benefit communities, businesses, individuals and families across Scotland as we enter this next difficult phase in our fight against coronavirus?
Minister reply
I am grateful to my hon. Friend for his question and for the conversations he has had with both me and the Prime Minister on the importance of supporting every part of our United Kingdom as we go through this economic crisis and drive our recovery forward. That is something this Government will always take very seriously. He has been very helpful and played a valuable role in ensuring that the measures we have put in place today will benefit companies and workers in every single part of our United Kingdom.
Warrington North
Question
Large parts of the north, including my constituency, are under extra restrictions but are not being given additional support from the Treasury, whether it is our local authorities or our businesses. If the Government’s levelling up agenda is to mean anything, that must be urgently addressed. Today’s statement is a significant change of direction from “whatever it takes”, so what extra measures will the Chancellor provide to constituencies such as mine to ensure we are not levelled down as a result of the pandemic?
Minister reply
There is support in place for local authorities, through the NHS, for any response in areas of tightened restrictions, whether for community information or enhanced testing. Recently, we outlined a self-isolation incentive payment of up to £500 and a business grant support scheme for businesses that have been ordered to close. The Government remain committed to levelling up in every part of our country, as outlined in our ambitious plans to invest in infrastructure in every part of our country.
Lee Anderson
Reform
Ashfield
Question
The eat out to help out scheme was a massive success in Ashfield, with 53,000 meals served. The scheme saved thousands of jobs and kept hundreds of businesses open. However, my wife is not happy with the Chancellor, because I put a stone on in weight in August, which meant I needed bigger clothes. Jono Edwards, who owns the world-famous Junction Bar & Restaurant, is very happy with the Chancellor. Jono tells me that without the Chancellor’s support his bar would have closed and his staff, who are like a family to him, would have lost their jobs. May I pass on my thanks to the Chancellor from every single pub and hospitality business in Ashfield for extending the 5% VAT cut until next March? Jono Edwards, Dame Margo and Donna at the Junction pub will be very happy with this great news.
Minister reply
I thank my hon. Friend, and I am glad that our initiatives have made such a difference on the ground to people in his constituency in protecting jobs, as I am sure they have elsewhere. I very much hope that I can come to visit him and Jono and his team at the Junction pub in the near future, and I wish them every support through the next few months. I hope that the measures we have put in place today will ensure that they continue to thrive in the future.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
Question
I have called for targeted support for jobs in the aviation sector a number of times. The sector would be viable if not for the impact of coronavirus, but in my constituency easyJet, Tui and Luton Airport have already been forced into making redundancies due to the lack of Government support. Can the Chancellor explain why the Government waited until a week after the deadline passed for consultation on large redundancies caused by the end of the coronavirus job retention scheme to announce its replacement?
Minister reply
Our response will continue to evolve as the circumstances demand. With respect to aviation, I have every sympathy for companies and employees in that sector; obviously, they have been very hard hit. The measures that we have put in place have made a significant difference to businesses in that sector. Indeed, I think that one of the ones the hon. Lady mentioned is among the many that have accessed some of our much larger loan schemes to provide vital liquidity at a very difficult time, and I know that many businesses in the aerospace supply chain will particularly welcome the part-time working job support scheme we have announced today, as it will be particularly well suited to their manufacturing businesses.
Question
I welcome the Chancellor’s statement. His stamp duty holiday, which is due to expire on 31 March, has been extremely successful in stimulating an important part of the UK economy. What plans does he have for further housing initiatives, which will not only generate business activity but, if properly focused, also alleviate poverty and promote social mobility?
Minister reply
My hon. Friend is absolutely right to say that the stamp duty cut is driving activity in the housing market, which is helping to protect jobs in that sector. I would point him to our green homes grant, which the Department for Business, Energy and Industrial Strategy is going to roll out shortly and which will provide households with a grant of up to £5,000 to subsidise initiatives to improve the insulation and energy efficiency of their homes. There will be larger grants available for those households most in need, as determined by their local authorities, helping them not only to save on carbon emissions but to save up to £300 a year on their energy bills.
Alan Brown
SNP
Central Ayrshire
Question
We talk about a green industrial revolution and the Chancellor talks about job protection, yet just last week, Scottish yards missed out on the procurement contracts for the Seagreen offshore wind project. In terms of real job creation, will he consider the Scottish Government’s plea for an £80 billion UK stimulus? Will he also confirm when the national infrastructure strategy and the energy White Paper will be published and, crucially, will he instruct officials to look at how the contracts for difference process works and change it so that it incentivises the use of UK supply chains?
Minister reply
The hon. Gentleman is absolutely right about the importance of offshore wind to our economy. It is something that we have a global strategic competitive advantage in, and this Government will continue to support the sector in the way that we have. I am always open to new ideas about how to do that, but we must ensure that we double down on our advantage and drive jobs in every part of our country, not just in Scotland but in the north-east, where we have considerable advantages over other countries, not just in providing energy but now in manufacturing more of the content that goes into our turbines.
Jacob Young
Con
Hayes and Harlington
Question
I thank my right hon. Friend for his statement. Does he agree that, as the coronavirus is now threatening our recovery, it is right that we focus our support on the problems that businesses in Redcar and Cleveland and elsewhere are facing right now? Support for viable businesses and viable jobs through a time of depressed demand due to the restrictions that virus threatens is exactly what the new job support scheme delivers.
Minister reply
My hon. Friend is absolutely right. He knows all too well what the businesses in his constituency need, which is support to get through this period of depressed demand. They need our support to protect those viable jobs and to help them get through to the other side, and that is exactly what the job support scheme will deliver.
Stephen Farry
Alliance
North Down
Question
It is right that the economic support schemes evolve, and this will be a lifeline for many people in Northern Ireland. The Prime Minister has talked about embracing everyone and the need for creativity and innovation, but surely there are two gaps in today’s announcements: first, the excluded; and secondly, the companies where even paying a third of the wages is not a viable option at this time even though they do have sustainable futures, such as in the arts and creative industries and aerospace.
Minister reply
In terms of the arts and creative industries, we have provided over £1.5 billion of funding to support vital institutions in every part of the United Kingdom through that scheme, but it is important now that support is focused on companies that can provide viable jobs, with a genuinely secure future for their employees. As we have set the scheme, it is very similar to those around the world and gets that balance right, being generous with our support but also making sure that support is targeted where it can do the most good.
Joy Morrissey
Con
Beaconsfield
Question
I thank my right hon. Friend for listening to Members’ concerns about small businesses and the self-employed and for taking the time to engage with us and hear our concerns. In Beaconsfield, we have 4,000 people who have already benefited from the Government’s self-employed income support scheme, protecting their livelihoods. I therefore welcome today’s announcement that we will continue the support for the self-employed, through a further extension in the grant, and continue our unprecedented support for both the employed and self-employed. May I invite him to Marlow to see all the good work that he has done through his schemes?
Minister reply
I am very happy to take up my hon. Friend’s invitation. She is right to highlight the very comprehensive support that we have put in place for the self-employed. Compared with almost any other country anywhere in the world, it is more comprehensive, generous and has lasted for far longer than one can find elsewhere.
Stephen Crabb
Con
Preseli Pembrokeshire
Question
Throughout this crisis, the Chancellor has moved with speed and determination to protect jobs and family incomes. I welcome his comments today about targeting job support on viable companies with viable jobs. Implicit in that, though, is a recognition that, sadly, unemployment will continue to increase, so will he say a bit more about the importance of the social security safety net at this time and reaffirm the importance of the increase that we made right at the start of this crisis to universal credit and perhaps tell us that there is no intention on the part of the Government to withdraw it?
Minister reply
I welcome my right hon. Friend’s comments. He knows better than most what a difference our welfare system and, indeed, the Department for Work and Pensions and its phenomenal staff can make on the ground. I know that he will join me in welcoming not only the increase, temporarily, that we have put on universal credit for this year, providing almost £1,000 extra to those who are in receipt of it, but our further increases in and generosity with the local housing allowance and the provision of hardship funds to those struggling to pay their council tax bills, distributed through local authorities. In some areas, that represents a significant amount of support for the most vulnerable in our society—a point that was borne out in the distribution analysis that we published this summer, which showed that the most vulnerable in our society had benefited the most from our support.
Stephen Timms
Lab
East Ham
Question
On universal credit, the Chancellor rightly, at the start of the pandemic, suspended the minimum income floor in universal credit to avoid an unnecessary barrier to new self-employment. Given his welcome announcements today, will he extend the duration of that suspension beyond the middle of November, when it is currently due to end?
Minister reply
Decisions on the exact operation of our welfare system are for the Secretary of State for Work and Pensions, but I will happily reflect on the point that the right hon. Gentleman makes. He is right that that has made a significant difference in the early stage of this crisis, but as we go through it, we will make sure that we adjust and tailor our support to match the needs of the moment.
Christine Jardine
Lib Dem
Edinburgh West
Question
I hope that you can hear me this time, Madam Deputy Speaker. I thank the Chancellor for early sight of his statement, which I cautiously welcome, to the extent that he has listened to calls from Liberal Democrats to extend furlough and create some flexibility based on the German Kurzarbeit model, but what about the 3 million people who have had no support for six months and will still be excluded from financial help? Where are the job creation plans to tackle unemployment and for those who cannot work for a third of the time? Where are the incentives for manufacturing and industry to invest in this country and create new jobs—the green revolution—allowing us to compete with our European neighbours, who are already moving ahead of us?
Minister reply
In terms of ensuring that we are winners in the green industrial revolution, I point the hon. Lady to measures that we already announced in the Budget to provide significant support for initiatives such as carbon capture and storage and the construction of a charging infrastructure fund, to build more charging points across the United Kingdom. Such measures will make an enormous difference, on top of our commitment to double our research and development spending over the next few years, ensuring that businesses across the UK can play a leading role in driving our progress towards meeting our climate targets and creating new jobs in the process.
Nickie Aiken
Con
Ealing Central and Acton
Question
I warmly welcome the Chancellor’s statement, particularly the extension of the 5% VAT rate to next March. I know that many of the hospitality businesses in my constituency will welcome that as they grapple with the loss of tourists and office workers. Many are reporting that trading is at 20% of normal levels. Will he agree to meet me and representatives of theatres and the hospitality and retail sectors to discuss what further measures we can take to support the west end’s recovery?
Minister reply
My hon. Friend is right. I know that she has spent a lot of time focused on this issue, and businesses in her constituency are facing an especially hard time. I would be delighted to meet her and them to see what more we can do to support them.
Chris Bryant
Lab
Rhondda and Ogmore
Question
I used to be a curate, so I recognise a curate’s egg when I see one. This is good, but only in parts. The truth is that lots of people’s jobs are only unviable because of the virus and Government restrictions—I am not attacking the Government for that, but that is the simple truth. We therefore have a moral duty to try to help those people to survive, with proper livelihoods into the future. That especially applies to the aviation industry and the hospitality industry in my patch. I hope that the Chancellor will be able to say something more about specific grants, not just loans, for businesses that are sorely affected.
The Chancellor still has not answered the question about the 3 million people who got nothing earlier this year. Perhaps there was something hidden in what he said about the self-employed that means more people will get support this time, but he must have had constituents contact him, as I have. Finally, I wrote to him on 23 February—214 days ago—about the massive flooding in south Wales. He has not yet replied. A tip has fallen into the river. Can he visit the Rhondda and see the problems that we have? We really need financial support. The Prime Minister has promised that an answer is coming quickly, but we have still not had it—or the Chancellor could just send a cheque.
Minister reply
I apologise to the hon. Gentleman; I will find his correspondence as soon as I can and get him the reply that he deserves. I do not think I disagree with him. It is right that we focus our support on viable jobs. Those jobs are, in part, not viable because of the restrictions. The balance that we have to get right is in understanding that we will be dealing with this virus for a while to come—it is not here and then gone. That changes what our support should do. We have to focus it on those with a genuine prospect of employment, and I think the job support scheme gets that balance right. It is generous and flexible. With regard to hospitality, which is important to his constituency, I know that the industry will warmly welcome the extension of the VAT cut into the spring.
Lucy Allan
Lab
Telford
Question
The Chancellor has shown himself to be nimble and agile throughout this crisis. I congratulate him on his statement and his recognition that we must adapt and evolve and can no longer put our lives on hold. I particularly welcome the measures to support hospitality and the 5% VAT rate extension. The fantastic Telford International Centre for businesses and conferences brings in 300,000 people every year, but its turnover is now zero. Will he continue to do all he can to support the events industry, which is so important to my town?
Minister reply
I thank my hon. Friend for her comments, and she is right: the Government must respond with agility as the virus and our economy evolve over the coming weeks and months, and we will continue to do that. I very much sympathise with her and those in the events industry, given the difficulties they are experiencing. I know that conversations are ongoing with the Business Secretary about what can be done to best ensure that, at some point in the future, we can return to what we all want, which is the thriving industry her constituency wants to see.
Ben Lake
PC
Ceredigion Preseli
Question
The Chancellor mentioned that the existing self-employed support grant will be extended on similar terms and conditions to the new jobs support scheme, but can he tell the self-employed in rural areas such as Ceredigion, who represent almost 30% of the workforce, whether he has changed the terms and conditions in such a way as to ensure that those who have been excluded from support so far will now get the help they deserve?
Minister reply
The eligibility conditions will remain as they are, with refinements to make sure that businesses are still trading over the winter and to recognise that they have suffered and are suffering an impact on revenues through coronavirus. The reasons for those eligibility criteria are well documented and have been discussed in this House many times, so I will not recap exactly why they are there, but it is worth bearing in mind that the extension of this support means that we have provided more support to 2.5 million self-employed people, which is considerably more than any other country has and for a longer duration.
Andrew Jones
Con
Harrogate and Knaresborough
Question
I welcome the significant and wide-ranging package that my right hon. Friend has introduced, and I want to focus on one element of it, cash flow, which is always a critical issue for businesses. Bounce back loans have been used by over 1 million companies across the UK, including 1,794 in Harrogate and Knaresborough, which have taken out loans worth more than £51 million. I therefore welcome the new pay as you grow scheme, which means that businesses will now enjoy greater flexibility to repay their loans over a longer period. Does my right hon. Friend agree that that will be of great value to businesses and that extending the terms to 10 years will halve the average monthly repayments?
Minister reply
My hon. Friend knows from his own business career the importance of cash flow, and he is absolutely right. He mentioned the almost 2,000 businesses in his constituency; on average, they probably took a bounce back loan of about £30,000. This extension to 10 years will reduce the average monthly repayment from something over £500 to just around £300, which will provide thousands of pounds of cash-flow relief to his 1,800 businesses, but also to 1 million others around the United Kingdom.
Gerald Jones
Lab
Merthyr Tydfil and Aberdare
Question
As we have heard, around 3 million people across the country were excluded from support during the first stage of the pandemic. Yesterday I was contacted by a wedding photographer in my constituency who is struggling to pay his mortgage and feed his family, and the prospect of many more months of uncertainty is terrifying for him and many others in similar industries and sectors, such as event planning, that are unable to operate in anything like normality at the moment. What assurances can the Chancellor offer that the measures he has announced today will not continue to exclude people such as my constituent and many more across the country?
Minister reply
The hon. Gentleman mentioned mortgages, and I am sure his constituent, like many others, will have benefited from the mortgage holidays that we put in place, which my hon. Friend the Economic Secretary helped to organise with the banking system. Those provided six months of mortgage holidays for people, and, indeed, one in six mortgages across the UK was able to benefit from that generous scheme.
Cheryl Gillan
Con
Chesham and Amersham
Question
May I also congratulate the Chancellor on today’s groundbreaking announcements and particularly on focusing support on viable jobs and ensuring that support goes where it is most needed? The extended guarantee on CBILS, as well as pay as you grow and the measures on VAT, will be warmly welcomed by individuals and businesses in Chesham and Amersham. However, does my right hon. Friend remember the Micawber principle: “Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” What can he say to my constituents who ask how we are going to pay this enormous bill, and how can he ensure that we provide value for money for the taxpayer?
Minister reply
My right hon. Friend is absolutely right and I am grateful to her for her instruction on the fiscal maths that we are grappling with! As we move our way through this crisis, the nature of our response has to change. It is simply not sustainable or affordable to continue to provide the level of support that we gave at the beginning of this crisis. That is why our support is now targeted and focused on where it can make the most difference. That will mean that we cannot do absolutely everything that everybody needs at once, but we will be able to focus it on where it can make the most difference, so that, as quickly as possible, we can get our economy growing again and ensure that the maths my right hon. Friend outlined starts to work in our favour. We cannot borrow at this level forever. We must get our borrowing back under control and eventually get our debt falling again.
Janet Daby
Lab
Lewisham East
Question
I welcome the Chancellor’s statement. Almost 700,000 people lost their jobs between March and July. What is the Government doing to support these people, because the use of food banks has in some cases tripled? What will the Government do to support those who will lose their jobs in the months to come, to help them during any period of unemployment, and to get them back into work as quickly as possible?
Minister reply
The hon. Lady is absolutely right: it is a tragedy that 700,000 people have already lost their jobs and many more will. Our focus should be, and is, on finding fresh, new opportunities to provide them with the security that they and their families so desperately need. That is why we have provided incentives for companies to take on new staff through our apprenticeship scheme. We have also provided incredibly intensive support through the Department for Work and Pensions, through a doubling of the number of work coaches and greater wraparound support to help all of those people mentioned to plot their course and chart a better future for themselves.
Nicola Richards
Lab
West Bromwich East
Question
The new jobs support scheme rightly focuses on protecting employment and preserving viable jobs during a period of depressed demand. Businesses and workers in West Bromwich East will be extremely grateful for that. Does the Chancellor agree that it is also fair that the scheme targets those businesses that need it most, and will he set out how the scheme is deliberately targeted in that way? Will he also join me in visiting the incredible Red Lion Desi pub, to hear how it has benefited from the eat out to help out scheme?
Minister reply
My hon. Friend is absolutely right about the nature of our support at this phase in our recovery. In a couple of different ways, this support has evolved in the way she said. It is targeted at those larger businesses that really need it, whose revenue has declined, and it is targeted specifically at protecting and supporting viable jobs—those jobs where there is work to do but the company is facing a period of repressed demand. This is a scheme that will make an enormous difference to those people, but in a targeted and effective way.
Neil Grey
SNP
Airdrie and Shotts
Question
From talking in July about “nobody left behind”, to accepting today that so-called “unviable jobs” will be lost, the Chancellor has failed to live up to his own rhetoric. The viability of these jobs is in large part dependent on entirely necessary Government restrictions, and it is disappointing that he continues to abandon the 3 million excluded from support. Given that he now accepts further widespread job losses, why has he not made permanent the temporary £20 per week universal credit uplift and expanded it to legacy benefits?
Minister reply
The temporary increase in universal credit already lasts all the way through to the end of March next year. For those who are most vulnerable, as I have said previously, we have provided significant enhanced support through the welfare system, including almost £1 billion of extra investment in local housing allowance, to help with private rent payments, and a hardship fund, to help people who are struggling to pay their council tax bills. As our analysis showed in the summer, the interventions that this Conservative Government have made over the past several months have made the most difference to those on the lowest incomes.
Sajid Javid
Con
Birmingham Bromsgrove
Question
I know what it is like to have to postpone a much anticipated Budget, but I am pleased to see that it has not prevented my right hon. Friend from doing whatever it takes to protect the economy. Since the onset of this crisis, he has shown the decisiveness, resilience and creativity that the country needs right now, and I commend him for it. I know that he values infrastructure investment and knows that it is going to form an important part of our recovery, so may I urge him to publish the national infrastructure strategy, which has been delayed time and again, as soon as he possibly can, so that we can get on with levelling up across our great country?
Minister reply
I thank my right hon. Friend, who is a very good friend of mine, for his warm comments. Whatever I have been able to do over the past several months is in no small part thanks to the instruction that he has given me when he was my boss in not one, but two different Department jobs. He is absolutely right about the importance of infrastructure investment, and he was one of the first people to talk passionately about the need to increase significantly the amount of money that the Government invest in the UK’s infrastructure. It was he, as Chancellor, who put in place the infrastructure revolution, and I can commit to him that I will absolutely deliver on that. He is right that we must publish the national infrastructure strategy; we will do so this autumn.
Shadow Comment
Anneliese Dodds
Shadow Comment
The Shadow Chancellor welcomed the announcement of a jobs support scheme but criticised the delay in introducing such measures. She questioned the effectiveness and conditions of the new wage support scheme to ensure value for public money, training opportunities, and continuation of employment. Dodds also called for clarity on how the scheme will address gaps in coverage for self-employed workers and those clinically vulnerable to coronavirus. Highlighting previous calls from Labour for a back-to-work Budget, she emphasised the need for urgent action on test, trace, and isolate systems, alongside addressing issues with green investment.
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