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Arcadia and Debenhams: Business Support and Job Retention

02 December 2020

Lead MP

Paul Scully

Debate Type

Ministerial Statement

Tags

EconomyTaxationEmploymentBusiness & TradeLocal Government
Other Contributors: 49

At a Glance

Paul Scully raised concerns about arcadia and debenhams: business support and job retention 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

EconomyTaxationEmploymentBusiness & TradeLocal Government
Government Statement
The retail Minister, Paul Scully, addressed recent developments affecting major retailers such as Arcadia and Debenhams. He noted that approximately 13,000 people work for Arcadia while about 12,000 are employed by Debenhams, both of which have been facing financial difficulties due to the coronavirus crisis. Administrators will assess all available options for these companies without immediate redundancies or closure of existing sales channels. The government is working closely with administrators and industry leaders through regular contacts and meetings like the Retail Sector Council. Scully highlighted several support measures already in place: £7.7 billion from the coronavirus job retention scheme, a 12-month business rates relief worth over £10 billion, cash grants of up to £25,000 for businesses with rateable values between £15,000 and £51,000, more than £50 billion in business loans, and legislation protecting commercial tenants from eviction. He also mentioned plans like the £2 billion Kickstart scheme and doubling frontline work coaches to support job creation. Scully emphasised ongoing government efforts to ensure safe reopening of non-essential retail and encouraged local authorities to extend shop operating hours before Christmas.

Shadow Comment

Ed Miliband
Shadow Comment
Ed Miliband, the Labour shadow minister, expressed sympathy for those at risk due to job losses but criticised the government's response as inadequate. He asked Scully four specific questions: first, whether Philip Green should be compelled to address pension deficits created by his family's dividend-taking; secondly, if it was a mistake to not support amendments that would make pension fund holders priority creditors in insolvency cases; thirdly, about providing targeted help for workers at Debenhams and Arcadia facing redundancy; fourthly, whether the government should extend rent evictions moratorium beyond December, increase hospitality business support, and address high street retailers' disadvantage compared to online competitors. Miliband argued that while the vaccine news is positive, the government must act urgently on a larger scale to preserve essential businesses and jobs.
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