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Public Health Restrictions: Government Economic Support
13 October 2020
Lead MP
Steve Barclay
Debate Type
Ministerial Statement
Tags
TaxationEmploymentLocal Government
Other Contributors: 49
At a Glance
Steve Barclay raised concerns about public health restrictions: government economic support 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
Yesterday, the Prime Minister and Chancellor announced further support measures to aid local authorities through the crisis. The Chancellor extended the job support scheme for businesses required to close due to coronavirus restrictions, offering up to two-thirds of an employee's salary (£2,100 monthly) if they cannot work for a week or more. Additionally, these businesses will receive non-repayable cash grants of up to £3,000 per month. A total of £14 billion in guaranteed Barnett funding was provided to the devolved administrations, with an extra £1.3 billion added specifically to help Scottish, Welsh and Northern Irish Administrations if they choose similar measures. The Government also allocated around £1 billion to local authorities for vital services protection and up to £500 million more for high-risk areas.
Anneliese Dodds
Lab Co-op
Oxford East
Question
The opposition questioned the government’s economic policy, highlighting inconsistencies with initial plans. They asked why test, trace and isolate funding is only provided once areas are in tier 3, raised concerns about unspent local grants not being used to support businesses, and questioned workers' financial hardships.
Minister reply
The Minister defended the government's measures, stating that the additional £1 billion allocated to local authorities reflects responsive listening. He addressed the issue of underspent funds by explaining that these were based on estimations and returning surplus funds was necessary for fiscal responsibility.
Mel Stride
Con
Central Devon
Question
Asked about scientific evidence supporting pub closures at 10 pm to balance virus protection with economic impact.
Minister reply
The Minister cited projections from the Scientific Advisory Group for Emergencies (SAGE), indicating that measures like the curfew and rule of six have been effective in reducing daily cases significantly.
Question
Asked if the government would extend furlough, use returned funds to support excluded individuals, listen to SNP demands for an £80 billion stimulus package, or devolve more powers to Scotland.
Minister reply
The Minister highlighted the Conservative Government's support through extensive fiscal measures like the £200 billion response fund and the job support scheme. He reiterated that transparency and shared responsibilities are key values of the Union.
Gerald Jones
Lab
Merthyr Tydfil and Aberdare
Question
Called for full budget adjustment publication from the UK Treasury to aid Welsh Government decision-making.
Minister reply
The Minister acknowledged transparency issues but defended recent calls with the First Minister of Wales. He emphasised the £1.3 billion guarantee provided as a forward-looking measure to assist in budget planning.
Mike Wood
Con
Kingswinford and South Staffordshire
Question
A tenth of pubs have not reopened since lockdown in March while two thirds were already trading at a loss, even before restricted opening times. Will the minister look at state aid limits that threaten to prevent 10,000 pubs from receiving support they need?
Minister reply
The curfew is insufficient for some but it recognises the challenges the pub sector faces. The Chancellor has set out a wider package of support including tax deferrals, loans, business rate support and measures on VAT to target these concerns.
Stephen Kinnock
Lab
Aberafan Maesteg
Question
What steps are the Government taking to tackle the practice of firing then re-hiring employees on inferior terms and conditions?
Minister reply
The furlough scheme retains links between employers, workers and jobs. The furlough bonus is designed to strengthen these links, preventing companies from using this pandemic as a cover to fire and rehire.
Matt Vickers
Con
Stockton West
Question
What will the Government do to protect jobs in tier 2 restrictions?
Minister reply
The package of support includes cash flow packages and measures set out by the Chancellor to ensure businesses can continue trading through tier 2.
Christine Jardine
Lib Dem
Edinburgh West
Question
Will the Government assure that people with bounce back loans will not face repossession of their homes if they struggle to repay them?
Minister reply
The terms of the bounce back loans were designed for speed and come with a government guarantee. Extended access and possible repayment periods have been put in place, reducing risk of such issues.
Question
Is there evidence that swimming pools and gyms are centres for covid transmission?
Minister reply
The chief medical officer and the chief scientific officer consider these businesses to carry significantly more risk, which is why they have been harder hit in guidelines.
Sammy Wilson
DUP
East Antrim
Question
How does the package of support assure hospitality industry businesses that are not instructed to close but face restrictions?
Minister reply
The job support scheme recognises businesses not in closure but struggling. The employer pays one third, with the Government supporting two thirds and a £1 billion fund for local authorities.
Question
What are the Government doing to prevent the forced closure of care homes due to staff transfers posing infection risk?
Minister reply
The financial pressures in adult social care sector were long-standing. The £3.7 billion package for local authorities includes a strong interplay between workforce challenges and financial viability.
Southgate and Wood Green
Question
When will the Government announce additional funding for schools to cover increased cleaning costs?
Minister reply
The 2019 spending round allocated a very generous education funding settlement that should more than cover the cleaning costs.
Edward Leigh
Con
Gainsborough
Question
The MP questions the Government's measures affecting businesses, particularly in the hospitality sector. He criticises the curfew for pubs and calls for action to help British business operate.
Minister reply
Minister points to scientific advice from chief medical officers and SAGE guidance, justifying the package of measures as a balanced approach to reduce infection risk.
Stephen Doughty
Lab Co-op
Cardiff South and Penarth
Question
The MP raises concerns about employers using 'fire and rehire' tactics during the pandemic, citing British Gas/Centrica as an example. He asks for a message to be sent to the chief executive of British Gas/Centrica.
Minister reply
Minister agrees that 'fire and rehire' is unacceptable and highlights that the Government's approach is aimed at retaining the link between workers and their businesses.
David Jones
Con
Question
The MP inquires about support for tourism businesses impacted by Welsh Government restrictions, questioning why these businesses are not receiving help.
Minister reply
Minister explains that the rent support scheme of up to £3,000 is available but it's for the Welsh Government to design support schemes using Barnett consequentials.
Debbie Abrahams
Lab
Oldham East and Saddleworth
Question
The MP highlights regional inequalities exacerbated by cuts to local authority funding and questions the impact of recent measures on the Government's ambition to 'level up'.
Minister reply
Minister argues that the UK's package of support is generous compared to international comparators, pointing out that it includes £200 billion in aid.
Alec Shelbrooke
Con
Wetherby and Easingwold
Question
The MP asks for the extension of financial grants to hospitality venues in tiers 2 and 3, citing concerns about businesses being open in name only but not functioning properly.
Minister reply
Minister states there is a balance between comprehensive packages and fiscal costs; he reiterates that they have committed over £200 billion.
Kevan Jones
Lab
Question
The MP questions the science behind the 10 pm curfew on pubs and restaurants, asking for an explanation of why such a policy decision was made.
Minister reply
Minister cites SAGE guidance about multiple anecdotal reports linking outbreaks to bars and identifies visits to entertainment venues as a risk factor.
Laura Farris
Lab
Question
The MP asks for immediate action against employers engaging in 'fire and rehire' tactics, suggesting disqualification from further Government support.
Minister reply
Minister notes the complexity of employment law but agrees that such practices are not acceptable. He indicates a need to review this issue.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Question
Given the Chief Secretary’s answers on ‘fire and rehire’, I hope that he will back my Employment (Dismissal and Re-employment) Bill. With no aviation support package as promised, the job support scheme riddled with holes and the abolition of airside tax-free shopping, further debt or job losses are the only options for firms. Is it now Treasury policy to write off aviation, making tens of thousands of jobs unviable?
Minister reply
The aerospace and aviation sectors have received over £8.5 billion through the covid corporate financing facility. Grants for research and development, loans and export guarantees are also expected over the next 18 months. The Government launched the Global Travel Taskforce recently, underlining their commitment to this sector.
Julian Sturdy
Con
York Outer
Question
UKHospitality reports trade down by 40% to 60% due to the ban on the indoor mixing of households. Can I therefore add my name to that of other colleagues who have called for my right hon. Friend to commit to urgently reviewing what targeted support could be provided for enterprises stuck in tier 2, who, as it stands, receive very little specific help but will still suffer huge losses of trade from additional restrictions that come with tier 2?
Minister reply
The most important thing for businesses in tier 2 is that we are able to control the virus. The Government are investing over £12 billion so far in track and trace, enabling businesses in tier 2 to retain their staff through the winter plan and job support package.
Pontypridd
Question
The Minister will surely know by now that my local authority of Rhondda Cynon Taf has had local restrictions imposed on it for some weeks now. The Chancellor, when he can be bothered to show up, talks a good game, but it is clear that this Government do not care about people in communities across Wales. It was only earlier this year that Pontypridd was decimated by the worst flooding for many decades, and the UK Government simply sat on their hands and watched as homes and businesses were devastated. The Minister now has an opportunity to redeem himself and this Government. We need action now on the money that was promised, so what are his plans to finally assist the 3 million people who have been excluded from the Government support packages thus far?
Minister reply
The hon. Lady makes a point about the wider support without any mention of the guarantee on Barnett consequentials that has been given. It is unprecedented for the Government to give a guarantee up front on Barnett consequentials.
Craig Whittaker
Con
Halifax
Question
Track and Trace nationally gets a bad press, wrongly in my view, but when we add a local tier, with local people employed, the success rate on contacts climbs. Calderdale’s local tier takes the success rate on contacts to almost 90%. How much extra support is being given to these local tiers?
Minister reply
The Prime Minister and Chancellor announced an additional £500 million to address exactly the point my hon. Friend highlights about the benefit of working closely with local directors of public health.
Alex Sobel
Lab/Co-op
Leeds Central
Question
Yesterday, I held a roundtable with hospitality businesses facing tier 2 restrictions. They asked whether we could look at increasing the intervention rate for the job support scheme in November to be more generous because otherwise they will have to let go of their staff and there is the potential for large-scale closures of hospitality businesses. What additional measures can the Government bring forward for hospitality businesses that are under tier 2 restrictions?
Minister reply
The package of support the Chancellor has put in place stands fair comparison by international standards, providing dynamic support for workers through universal credit.
Stephen Crabb
Con
Beaconsfield
Question
My right hon. Friend spoke a few moments ago about the important role being played by universal credit at this time, so may I press him again on the Treasury’s intentions on the temporary uplift in universal credit? It is one thing for a Government to reduce a planned rate of increase of a benefit or even to freeze a benefit, but it is another thing altogether to give extra money to some of the poorest people in the country and then take that away. That is precisely what we are on course to do next April unless we change course.
Minister reply
The announcement made was a temporary one to deal with the immediate consequences of the covid pandemic, and with all these decisions we need to balance the competing pressures at a particular time with the wider fiscal position.
Cat Smith
Lab
Lancaster and Wyre
Question
Fish and seafood wholesalers have been hit hard by a decline in demand from the hospitality sector. I have been contacted by My Fish Company, which is based in Fleetwood and which is concerned that the Government’s domestic seafood supply scheme appears to favour the larger national companies because of the short period of time in which to make an application and the level of resources that would require. So what reassurances can the Chief Secretary give to my constituents and companies based in Fleetwood, many of which are small and medium-sized enterprises, that the Government scheme is going to deliver for them?
Minister reply
When we agreed that scheme, it was very much with SMEs in mind. I would be quite keen to look at the delivery of that and to speak to colleagues in the Department for Environment, Food and Rural Affairs.
Bassetlaw
Question
In Bassetlaw and north Nottinghamshire, we are now subject to tier 2 restrictions in line with Nottingham and the rest of the county, despite having significantly lower rates. Despite the tremendous support that has been offered so far, some in the hospitality sector are really struggling, as we have heard from colleagues in the Chamber, so will the Minister please tell us what can be done for those in tier 2 to help them to get through this incredibly difficult time? Will he also try to keep this under review?
Minister reply
In part, it is our winter plan to support those businesses in terms of the staff they are able to bring back. There is no gap between the end of the furlough scheme and the start of the job support scheme. On top of that there are measures for loan extensions, an extra £1 billion to help with cash flow and extra £500 million to local authorities.
Apsana Begum
Lab
Poplar and Limehouse
Question
Local lockdowns will undoubtedly affect small businesses that have already struggled due to the initial lockdown earlier this year. In my constituency, traders at Chrisp Street market and Watney market were impacted by the lack of Government support earlier in the year.
Minister reply
The hon. Lady is right; when the Government put in place £10,000 and £25,000 grants linked to premises, market traders fell outside of that scheme because it was based on property. The specific issue of market traders was raised with us, and we put in place a further support scheme giving discretionary grants to local authorities to tailor additional funding to local circumstances.
Caroline Nokes
Con
Romsey and Southampton North
Question
I hugely welcome the expanded jobs support scheme, but it does not help those businesses that supply the events industry—such as sound engineers and lighting engineers, including Beat the Street in my constituency.
Minister reply
My right hon. Friend highlights an impacted sector; we have tried to help through measures like extending the self-employed income support scheme. The Chancellor has been candid about not being able to save every job due to fiscal constraints but is open to further measures.
Question
As we move to the next stage of our battle, will my right hon. Friend agree to keep an open mind about further support for hospitality businesses in tier 2?
Minister reply
I am grateful to my hon. Friend; the Chancellor has kept an open mind and consulted widely. For hospitality, we had measures like eat out to help out, targeted VAT support, and cash support measures. The key is to get the virus down.
Angela Eagle
Lab
Wallasey
Question
Yesterday, my constituency of Wallasey was mandated by the Government to go into tier 3 restrictions. Does the Chief Secretary agree that the £40 million of unallocated support could now be used to support local businesses in tier 3?
Minister reply
We addressed this; it is right that needs pertaining to tier 3 are addressed, not using underspend from a previous period as it would be unfair. We recognise and address pressures with tier 3.
Question
I thank my right hon. Friend for the package of support but may I raise again companies in the supply chain for the hospitality industry and events/exhibition industries? Many want to reopen, so will he meet me to arrange how it can be done safely?
Minister reply
Firstly, I am happy to meet my hon. Friend; eligibility for grants varies. We recognise the sector has been hard hit by COVID-19; we have brought forward measures on cash flow.
Question
May I be helpful to the Chief Secretary? I am MP for Huddersfield, facing vast problems of youth unemployment. Why cannot a windfall profit tax year on Amazon and other sectors doing well in this crisis fund a green revolution?
Minister reply
I welcome the hon. Gentleman's constructive approach; he is right to highlight youth unemployment. We have doubled work coaches, tripled traineeships, and increased apprenticeship funding.
Question
Stoke-on-Trent is currently in tier 1 but may see an increase in infection rates. Will my right hon. Friend reassure me that those unable to attend their place of work will continue to be supported, particularly from low-income households with rents to pay?
Minister reply
My right hon. Friend the Chancellor has sought to support throughout this crisis; in shielding programme, it was a proud record indicating intent.
Question
It is a shame the Chancellor is not here today because the Treasury needs to get better answers on evidence backing up the case for curfew and lockdown for hospitality sectors facing closures, cash flow crises, job losses.
Minister reply
The fact that we are criticised both for not locking down enough and for locking down too much indicates balanced decisions. In September, additional measures were brought in; yesterday's tiered approach is part of this balanced approach.
Mark Harper
Con
Fittleworth and Fernhurst
Question
In answer to an earlier question, the Chief Secretary talked about the interaction of the job support scheme and universal credit. Could he perhaps flesh out a specific example? I think I am right in saying that people getting support from both of those schemes can get up to about 90% of their income, which is obviously of huge benefit.
Minister reply
On the wider point, my right hon Friend, as a former Government Chief Whip, knows full well that in government one balances these Budget submissions alongside the wider fiscal position that the Government face. On his first point, he is absolutely right. If we combine the 67% of support through the job support scheme with the dynamic element of universal credit, that takes us much more towards 88%. I can give specific examples, but I have been asked to be briefer—by you, Mr Speaker—in my replies.
Dan Jarvis
Lab
Barnsley North
Question
Without additional financial support, the restrictions to which South Yorkshire will be subject will deal a hammer blow to businesses and high streets across our region. Can I ask the Chief Secretary what assessment the Treasury has done on the economic effect of the tier 2 measures, and whether he is personally satisfied that the current support available will be enough to save jobs and businesses here in South Yorkshire?
Minister reply
I know through his local responsibilities that the hon. Member is in conversation with my ministerial colleagues in the wider discussions on our response. The reality is, as I said earlier, that one cannot be satisfied that every job in the area will be protected. It is about having a balance of measures that enables those businesses to be open that can be and takes action on the virus to suppress the increase.
Neil O'Brien
Con
Harborough
Question
Oadby and Wigston in my constituency was the first place in the country to receive extra support because of our local lockdown. I pay tribute to Treasury officials and Ministers for putting it in place so quickly, but what is being done through the kickstart scheme and other schemes to create new jobs and to fight unemployment?
Minister reply
My hon Friend raises a good point, and it speaks to the point raised on youth unemployment a moment ago. We have invested £2 billion in the kickstart scheme. We are tripling traineeships. We have the £2,000 for firms taking on apprenticeships.
Wirral West
Question
It is important that the Government understand the reality of people’s lives as new restrictions are introduced. Figures from the Low Pay Commission show that around 1,800 people in Wirral West are paid at or around the minimum wage. Many people on low pay work in bars and restaurants, and I am very concerned about the impact that the new restrictions will have on their ability to pay their bills. What action will the Government take to ensure that working people in Wirral West do not face poverty as a result of these new measures?
Minister reply
The hon. Lady is right to highlight that worry that many people have, particularly with the additional announcements. That is why we have taken the action we have, with the additional £7 billion into welfare to enable universal credit to top-up where there is an impact on people’s wages.
Steve Double
Con
St Austell and Newquay
Question
The Government have rightly put in several billion pounds directly to support the rail industry, but that is in sharp contrast to the aviation sector, where very little direct specific support has been provided. In many parts of the country, our domestic air routes and our regional airports are just as much vital transport infrastructure as the railway is, so will my right hon Friend please look again at what support can be given to the aviation sector, particularly our regional airports?
Minister reply
I know that my hon Friend is a strong champion of the aviation sector. It is not the case that the aviation sector has not had support. I pointed earlier to the £8.5 billion through the corporate financing facility. In terms of Government focus on the sector, he is absolutely right that it is an important sector for the UK to focus on.
Joanna Cherry
SNP
Edinburgh South West
Question
Local lockdowns affect a far wider range of businesses than just those that are forced to close. Food and drink suppliers such as Edinburgh Beer Factory in my constituency will be severely affected. Small and medium enterprises such as that are the backbone of the Scottish economy, so why has the Chancellor’s furlough replacement scheme so drastically slashed support for innovative and thriving businesses such as the Edinburgh Beer Factory?
Minister reply
It has not. It has provided a universal offer to all firms that are able to be open, for exactly the reason at the heart of her question. She is quite right that the displacement impact goes far beyond areas in tier 3 or tier 2.
Julian Knight
Con
Solihull
Question
On Sunday evening, Mayor Andy Street was told that Solihull would be in tier 1. The day afterwards we appeared in tier 2. Does the Minister recognise the crushing blow that that gives to the hospitality industry and that tier 2 is economically the worst of all possible worlds?
Minister reply
I think we all agree in this House that we want to do all we can to get the virus down and get businesses open. We do not want businesses to be in tier 2 or indeed tier 3. We want to support them so that they are able to function as much as possible.
Sharon Hodgson
Lab
Washington and Sunderland West
Question
Data out today shows that over 1,700 more people in my constituency were unemployed in August 2020 than in August 2019, and that is before the existing furlough scheme ends. With unemployment in the north-east already rocketing to 6.6%, the highest of any UK region, why is the Chancellor allowing damage not seen since Thatcher in the 1980s to befall my region?
Minister reply
The hon. Lady is usually one of the most constructive Members. To suggest that a pandemic that all countries are grappling with is down to some sort of ideological approach by the Government is not accurate. The Government have put in place a furlough scheme for eight months that stands very good comparison with those of other countries.
Jonathan Gullis
Lab
Harrow East
Question
VAT cuts and business rates holidays were superb for the hospitality operators but unfortunately did not pass down to supply chains such as ceramic manufacturers. Flexibility needs to be introduced into the job support scheme to allow continuous manufacturers such as those in ceramics the ability to access the support of the scheme for their weekly workforce. What plans are being made to allow ceramic manufacturers such as Churchill China and Steelite the flexibility to access the support of this scheme?
Minister reply
There is always a balance between the operability of schemes, the speed at which one can deploy them and how bespoke one makes them. I know that my hon Friend is a huge champion of the ceramics industry, and I know it is important to Stoke and to businesses in his constituency.
Mary Foy
Lab
City of Durham
Question
Last week, the Chancellor announced that workers at businesses and workplaces forced to close would be eligible for grants worth two thirds of their salary. That is clearly not enough. Will the Minister tell me whether bills, rents and mortgages will be charged at two thirds of the usual amount? If not, will the Government extend the evictions ban?
Minister reply
We have addressed this already in a number of questions. The point is that it is not simply two thirds; it is dynamic, aligned with universal credit, which then moves to top that up. The package of support, which is above that provided by many of our European comparators, is, if combined with universal credit, at 88% in many circumstances, not 67%.
Question
Stevie the Sweet—not everyone’s pet name for the Chief Secretary, but Stevie who has the sweet stall on Mould market in my constituency—yelled at me as I walked past on Saturday. “Oi,” he said, “that Boris and Rishi and all the Treasury team are all right by me.” That is the story up and down my Delyn constituency, where my small business owners commend the work done by the Treasury and the support they have been given during this pandemic. Does my right hon. Friend agree that, when businesses in our tourism sector are being effectively locked down by draconian travel measures put in place by the Welsh Government, perhaps we need to step in and assist them a little more —for example, Greenacres and Tree Tops caravan parks in my constituency?
Minister reply
One of the strongest benefits to businesses in Wales, and indeed across the United Kingdom, is the broad shoulders and ability of the UK Treasury to act on behalf of the entire United Kingdom. That is a huge strength and it has helped to enable schemes such as furlough and others to be of benefit to businesses in Wales. On the measures put in place by national Governments, the more that is done through the Joint Biosecurity Centre with consistency, the better. But obviously, that is a decision for the Welsh Government.
Tim Farron
Lib Dem
Westmorland and Lonsdale
Question
I will do my best, Mr Speaker.
Outdoor education centres are a crucial part of our visitor economy. There are 60-plus of them in Cumbria, employing hundreds of talented people whose jobs are, I am afraid, now seriously at risk. Outdoor education centres provide huge benefits in personal development, education, and physical and mental health, which are particularly valuable, even essential, at this time. They are as safe to reopen as schools, yet they face imminent closure and ruin. Will the Minister meet with me and the heads of outdoor education centres so we can take urgent action to save them?
Minister reply
The hon. Gentleman raises a valid point, and having lived in his constituency for a couple of years, I know how important outdoor education centres are to the economy. He is also quite right to point to their benefit to mental and physical health, often for young people, who have been particularly impacted in recent weeks. I suggest that I alert Ministers in the Department for Education to the specific concern he raises, so they can meet him so that the Department’s guidance can take his point on board.
Question
The Conservative Government have stood up to protect jobs, incomes and businesses with unprecedented measures, so will my right hon. Friend reassure me that his priority is to create, support and extend opportunity, especially for people in Stoke-on-Trent, where there is a need to grow the quality of job opportunities?
Minister reply
My hon. Friend is quite right: this is about not only working together to retain as many jobs as possible, but looking to the jobs of the future. He has constructive views on how we use levelling up in terms of the future jobs that can be offered in Stoke. We need to combine that with our commitments on infrastructure, broadband, research and development investment, and net zero, then look at those future jobs and the skills training that is offered to his constituents in Stoke, so that those who move from their current jobs can quickly get into those jobs of the future.
Shadow Comment
Anneliese Dodds
Shadow Comment
The Labour Party criticised the Conservative government's handling of the economic crisis, pointing out inconsistencies with initial plans. They raised concerns about support measures coming too late and questioned why test, trace and isolate funding is only provided once areas are in tier 3. The opposition also asked why £1.3 billion worth of unspent local grants cannot be used to support affected businesses and why workers in closed businesses face financial hardship.
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