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Protection of Jobs and Businesses
09 September 2020
Lead MP
Anneliese Dodds
Debate Type
General Debate
Tags
Employment
Other Contributors: 54
At a Glance
Anneliese Dodds raised concerns about protection of jobs and businesses 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:
Lead Contributor
Opened the debate
The Labour Party calls for targeted income support to businesses and self-employed people in sectors hardest hit by the virus, criticising the Government's withdrawal of job retention schemes. It emphasises the need for flexibility and sector-specific deals. The UK has seen a significant fall in employment numbers due to the pandemic, with 4 million still furloughed under the scheme.
Caroline Lucas
Green
Brighton Pavilion
Raises concern about the lack of support for self-employed individuals who have gone without any assistance for six months and argues that the Government should start listening to these workers.
Tan Dhesi
Lab Co-op
Slough
Supports the call for an extension of the furlough scheme and sector-specific deals, particularly in aviation. He highlights the negative impact on employment in his constituency due to Government inaction.
Kevin Hollinrake
Con
Thirsk and Malton
Challenges the Labour Party's proposals for a sector-based approach, questioning the practicality of such an approach and demanding solutions from the Opposition.
Jim Shannon
DUP
Strangford
Pleads for additional support to local councils dealing with squeezed budgets and furloughed staff returning under reduced circumstances. He highlights the struggle in providing adequate services due to insufficient staffing levels.
Questions the Labour Party's stance on extending the furlough scheme, demanding clarity on timelines and proposing concerns about indefinite support during a crisis.
Steve Barclay
Con
North East Cambridgeshire
From the outset of this pandemic, the Government have acted decisively to protect people’s livelihoods, with one of the most generous and comprehensive packages of support anywhere in the world. We are doing everything we can to recover our economy, support businesses and give everyone the opportunity of good and secure work. Our economic response is moving through a careful, co-ordinated plan, in three phases: first, the immediate response; secondly, the specific plan for jobs announced in July; and thirdly, rebuilding.
Jim Shannon
DUP
Strangford
I put on the record my thanks for all that the Government have done through the schemes that have helped many of my constituents. One thing needed to make this situation work is the co-operation and help of the banks, especially extending freezes on cards and loans for businesses in retail and hospitality sectors.
Yvette Cooper
Lab
Pontefract, Castleford and Knottingley
Haribo in Pontefract has announced that it is consulting on over 200 redundancies and proposing to move some of its production back to Germany. I urge Haribo to work with the GMB trade union and Wakefield Council to look at alternative plans to prevent huge job losses in the middle of a recession.
I pay credit to the Government because they have supported a number of different groups very well. However, one group who they have not supported is the self-employed, who are falling between the gaps. I ask for a meeting with the Treasury team to hear directly about the scale of difficulties they face.
The right hon. Gentleman mentioned the CBIL scheme, but many medium-sized and larger businesses in my constituency have struggled to get the loans they require. I ask what the Government is doing about this issue.
Kevin Hollinrake
Con
Thirsk and Malton
Earlier, my right hon. Friend pointed to the success of bounce back loans but some businesses will hit trouble in terms of making repayments. Will he support a programme of best practice across the banking sector to ensure that those businesses have every chance of getting through this?
Companies such as British Airways have used the furlough scheme to facilitate mass redundancy programmes for their staff. In fact, BA has also implemented the firing and rehiring of its remaining 30,000 staff often on massively reduced wages. Does he think that this is fair?
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
When we get through all this, I urge him and the Chancellor to carry out some sort of audit of how the furlough scheme worked. There have been newspaper stories of inappropriate furloughing of employees.
Matt Western
Lab
Warwick and Leamington
Germany has a much more advantageous scheme, which lasts until 2022. It is described by industry bodies in the automotive sector as giving them a competitive advantage. Does he agree with that?
Alison Thewliss
SNP
Glasgow Central
Ms Thewliss argued that the UK Government should continue supporting businesses and workers affected by the pandemic, noting that the current schemes are insufficient and urging for more flexible and enduring support. She highlighted the impact of local lockdowns on tourism and retail sectors in Scotland and called for a continuation of the furlough scheme and self-employment support scheme for at least two years. She also criticised the lack of parity between different support schemes and the absence of action to address gaps in support, particularly affecting freelancers and limited company directors. Additionally, she expressed disappointment over the rejection of requests to extend maternity leave. Ms Thewliss emphasised the need for more financial powers in Scotland and warned about the risks of a no-deal Brexit.
Eleanor Laing
Con
Wimbledon
Noted that 90 Back Benchers were hoping to participate and imposed a three-minute time limit on speeches.
Caroline Nokes
Con
Romsey and Southampton North
Commended the Chief Secretary for identifying support given to business, mentioned over 10,000 jobs protected by furlough scheme, £9.5 million to self-employed people, more than £42 million of bounce back loans, and £17.5 million in business grants. Pledged to work with local council and Lloyds Banking Group for the kickstart scheme. Acknowledged support given to hospitality sector and welcomed grants for beauty industry. Called for wider application of green homes scheme.
Darren Jones
Lab
Bristol North West
Requested Ministers to target support where it is needed most, criticised the Chief Secretary for posing questions instead of providing answers at the Dispatch Box. Emphasised that supporting strategically important sectors would have a positive impact on broader economy. Suggested an adequate test and trace system as well as fiscal investment in people and infrastructure with redundancy support services.
Stephen Hammond
Con
Wimbledon
Recognised the extraordinary support given to British businesses, mentioned local statistics for furloughed workers, self-employed scheme beneficiaries, bounce back loans, and CBILS. Suggested a plan for jobs rather than continuation of furlough scheme. Called for skills programmes and acceleration of capital investment. Urged Treasury not to rule out economic levers in support of the economy.
Mr Crabb praised the Government's financial response to the pandemic but urged them to extend extra funding in Universal Credit through spring next year and maintain an open mind on extending furlough for strategic sectors like Airbus in Wales and theatres across the UK.
Mr Whitley highlighted the devastation faced by UK manufacturing if the Government does not extend the furlough scheme, citing a potential unemployment rate of 10% and significant job losses in well-paid, high-skilled sectors such as aerospace. He emphasised the disproportionate impact on local economies beyond direct job losses.
Mr Gibson thanked the Government for supporting his constituents in Darlington with measures like furlough and business grants totalling over £12 million, but argued that these emergency safety nets need to end and be replaced by efforts to create jobs and invest in areas like Darlington.
Kate Hollern
Lab
Blackburn
The Government's one-size-fits-all approach does not work and is making matters worse in Blackburn. Despite promises to support businesses and jobs, additional lockdowns have led to an expected £19.5 million deficit for the council. A targeted approach with continued wage support is needed.
Bassetlaw
The Chancellor's support programme was unprecedented and necessary, saving many businesses through grants and furlough schemes. The construction sector has also benefited from getting staff back to work. The Eat Out to Help Out scheme has provided a boost for local businesses. Community assets like the North Notts Community Arena have been saved with various financial measures. Furlough should lead to sustainable public finances.
Grahame Morris
Lab
Easington
Unite members and other sectors are concerned about job losses due to the end of the furlough scheme. The coach sector has been particularly hard hit, with 98% of coaches parked up. Specific asks for the Government include extending finance holidays by a year, designating the coach sector as part of the leisure industry for grants, and introducing a freeze on lenders repossessing homes due to business closures.
Stuart Anderson
Con
South Shropshire
In Wolverhampton, businesses have faced significant challenges due to reduced footfall. Government support through the job retention scheme and grants has been vital, but it cannot continue indefinitely. Businesses need opportunities to move forward sustainably, such as through the kickstart scheme.
Christine Jardine
Lib Dem
Edinburgh West
Supports extending the furlough scheme, highlighting its flaws but also its necessity for economic recovery. Emphasises the need to invest in a new, greener economy and not to cut off the job retention scheme in October.
Tim Farron
Lib Dem
Westmorland and Lonsdale
Intervenes to express concern about tourism in his area, advocating for special support packages to help hospitality and tourism through winter months.
Sarah Olney
Lib Dem
Richmond Park
Intervenes to urge the Government to take urgent action towards net zero carbon targets and invest in transitioning away from carbon-emitting industries.
Acknowledges the Chancellor's comprehensive response for businesses under lockdown but argues that support cannot continue indefinitely. Supports the Government's plans for jobs, such as traineeships and apprenticeship creation, to prepare people for a new economy.
Intervenes to praise the Chancellor for taking responsibilities seriously and supporting businesses back to work, contrasting this with the perceived impracticality of Opposition policies.
Margaret Ferrier
SNP
Rutherglen and Hamilton West
Highlights significant reliance on furlough and self-employed income support schemes in her constituency. Advocates for continued support, especially for sectors like the events industry which face an uncertain future.
Nicola Richards
Con
West Bromwich East
The Treasury paid out nearly £14 million in business grants in my constituency, providing critical funding during the pandemic. The eat out to help out scheme has been widely welcomed by constituents and supported 91,000 meals across the area. Additionally, over 13,400 jobs were supported through the furlough scheme. While phasing out the furlough is ultimately right, we need new opportunities for people and to bring public finances under control. The kickstart scheme should be extended further to help young people who have had their early careers stalled due to no fault of their own.
Chris Elmore
Lab
Bridgend
The current jobs crisis is not inevitable and the responsibility for addressing it lies with the Government. There are 4,700 jobs at risk in Ogmore constituency due to ONS and HMRC figures. The suggestion that all sectors will survive without support when measures end in October is unrealistic. Constituencies like mine cannot cope with further deindustrialisation or job losses. Support from UK and Welsh Governments has been welcome but the furlough scheme needs extending. Significant cuts are expected in the aviation sector affecting jobs and economic impact across south Wales. The Government must intervene to protect highly paid, skilled jobs and not ignore the reality of the situation.
Nickie Aiken
Con
City of Westminster
The Government's support for businesses and jobs in her constituency has been substantial, including £9.1 million for self-employed individuals and over £440 million in bounce back loans. However, central London is still struggling due to a decline in commuters, impacting small shops and independent eateries. She proposes extending the furlough scheme, increasing tax-free shopping opportunities, and extending Sunday trading hours to boost economic recovery.
Mark Tami
Lab
Alyn and Deeside
The aerospace industry has been severely impacted by the pandemic, with significant job losses at Airbus in Broughton. He calls for long-term measures such as a shorter working week to upskill workers and supports environmental initiatives like fleet updates for airlines. He urges the Government to implement sector-specific schemes to protect jobs and maintain the UK's position as a world leader.
Scott Mann
Con
North Cornwall
The Government's support measures have been crucial in North Cornwall, including the furlough scheme supporting 13,000 constituents. He highlights the reopening of tourism and praises local businesses' adaptability during lockdown, such as fishermen using social media to reach customers locally and nationally. Mann also notes the importance of sustainable public finances moving forward.
Taiwo Owatemi
Lab
Coventry North West
Owatemi argued that the furlough scheme needs to be extended until further notice or reformed to better target aid towards struggling industries. She provided statistics showing a significant rise in unemployment benefit claimants and self-employed income support seekers, alongside over 17,000 individuals on furlough.
Eastwood praised the boldness of the Government's decisions to protect jobs during the pandemic. He mentioned innovative approaches taken by businesses in his constituency and highlighted the success of the Eat Out to Help Out scheme, urging more British manufacturing support through public sector contracts.
Tarry emphasised the potential catastrophic impact on unemployment if the furlough scheme ends prematurely. He cited predictions by the Office for Budget Responsibility and the Bank of England, highlighting that up to 20% of those currently on furlough may become unemployed. Tarry called for an industrial strategy to protect jobs and businesses while restructuring the economy.
Douglas Ross
Con
Moray
Thanked the Labour party for bringing forward a motion to debate and highlighted the positive impact of UK Government measures during the pandemic in his constituency. Mentioned specific figures such as 85,000 meals served through Eat Out to Help Out Scheme, 12,900 jobs furloughed, and over £7 million in loans granted. Called for support for the coach industry and criticised Scottish National party's lack of focus on small businesses.
Beth Winter
Lab
Cynon Valley
Joined climate change demonstration and the SOS for jobs campaign, emphasising the link between job protection and addressing climate change. Cited an estimate of 2.5 million people losing their jobs by end of 2020 without government intervention. Supported a strategy for job protection and upskilling as proposed by TUC and highlighted the need to repurpose industry to address climate change and support public services.
Andy Carter
Con
Warrington South
Acknowledged the global leading response of this Government in delivering a generous and comprehensive package protecting jobs with business grants, loans, rate relief, deferral of taxation, and direct support for businesses. Highlighted specific local impacts such as 103,000 meals eaten through Eat Out to Help Out Scheme, supporting 15,400 incomes via furlough scheme, and £126 million issued in CBILS and bounce back loans. Emphasised the need to encourage employers to keep their employees on and supported steps like job retention bonus scheme and kickstart scheme.
Anthony Browne
Con
South Cambridgeshire
The Government's support for industry during the economic crisis has been generous and nimble, saving jobs and providing grants and loans to businesses. The focus should be on helping with the transition by supporting people losing their jobs into new ones through measures such as kick-start schemes, apprenticeships, training, and advice from Jobcentre Plus.
Miriam Cates
Con
Penistone and Stocksbridge
Intervention in favour of focusing on creating new jobs instead of prolonging the inevitable through continued support for those who may lose their jobs. Supports helping people transition into new job opportunities.
Alison McGovern
Lab
Birkenhead
The economic crisis impacts heavily in areas where deindustrialisation has hit hard, and there are half a million jobs at risk in seats the Conservatives won. The focus on London's economy is not enough to help these regions. Worried about young people entering a labour market with high levels of unemployment in their initial working years.
Miriam Cates
Con
Penistone and Stocksbridge
Intervention highlighting that the Government's response has been largely towards those in the lowest income brackets, showing significant redistribution during the crisis.
Saqib Bhatti
Con
Meriden
The Chancellor introduced the job retention bonus scheme to bring back furloughed employees, kickstart scheme for young people, doubled work coaches, invested in flexible support fund. The furlough scheme helped protect 9.6 million jobs and £30.9 billion was given to over 1.2 million businesses. Other schemes include business interruption loan, bounce back loans, rates relief, self-employed income support, mortgage holidays, protection from evictions, rental holidays, tax deferrals, VAT cuts for hospitality.
Jacob Young
Con
Redcar and Cleveland
The job retention scheme protected 15,000 jobs in Redcar and Cleveland alone with further support for the self-employed. The furlough scheme was extended until October but must end now as some jobs do not exist anymore. We have to face up to consequences of telling people to work from home. Businesses like Pret and Costa are cutting jobs due to lack of encouragement by Mayor of London and Leader of Opposition to get back to work. Government steps include eat out to help out, green homes grant, stamp duty cut to create jobs.
Rachael Maskell
Lab Co-op
York Central
Charities face losing 60,000 jobs due to withdrawal of the furlough scheme. Small black, Asian and minority community organisations are estimated to be gone by end of financial year. The sector needs an extension of the job retention scheme with greater flexibility, gift aid emergency relief package, repurposing of national fund worth £500 million for charity support, effective distribution of shared prosperity fund and creation of a community wealth fund using dormant assets.
Mike Wood
Con
Kingswinford and South Staffordshire
The breadth and scale of the support package put in place by the Government is genuinely unprecedented, whether in times of war, disease or global recession. In Dudley South, nearly 12,000 constituents have been supported through the job retention scheme, and 2,500 more through self-employment income support scheme. Without such measures, thousands would have lost their jobs. This Government chose to back working people around the country, not bankers as the last Labour Government did. We need people back at work for sustainable future. The economy is interconnected where all parts rely on other sectors; one factor limiting order books for manufacturers in my constituency is low capacity performance across the board and that impacts supply chains. Furloughed jobs are less likely to be there and sustainable whenever furlough scheme ends, hence it's not appropriate to have an indefinite extension of the scheme.
Catherine West
Lab
Hornsey and Friern Barnet
We face a triple whammy with public health crisis in guise of covid, economic crisis due to Brexit costing billions of pounds, and climate change that will eventually cost us a lot. GDP fell by 20.4% in the second quarter of 2020, largest confirmed fall of any economy in Europe and G7. I spent summer visiting food banks and praise volunteers who run Campsbourne Primary School food bank providing desperately needed food for many families in Hornsey. The increase in jobseeker’s allowance and universal credit claimants is 300% in Muswell Hill ward, 234% in Fortis Green ward, and 220% in Alexandra ward. I ask for sector-specific schemes for workers particularly self-employed and those in creative sector; help for small business owners who are helping several employees to manage but have not had anything back for themselves.
Houghton and Sunderland South
The need for a targeted extension of furlough arrangements is urgent. Constituents in sectors like aviation, manufacturing, restaurants, pubs, clubs, hospitality, tourism, childcare, and car manufacturing face significant challenges. Labour urges the Government to work with them to design a scheme that can be more effectively targeted at struggling sectors.
John Glen
Con
Salisbury
The Government have acted decisively to protect people’s livelihoods and support businesses, with a response that is one of the most generous and comprehensive in the world. The Government's schemes include over £190 billion of support for people, businesses, and public services; 9.6 million furloughed workers; 2.6 million self-employed individuals; extensive welfare system improvements; tax cuts, tax deferrals, direct cash grants, loan schemes; Eat Out to Help Out scheme; reduced VAT on tourism and hospitality; housing sector growth with stamp duty threshold increase; green homes grant; kickstart scheme for young people; job retention bonus to encourage re-employment. The debate also highlighted the need for a sustainable fiscal strategy as borrowing levels rise.
Government Response
The Government's response has been comprehensive, including £190 billion in support schemes, furlough scheme supporting millions of people and families, and a plan for jobs that includes the kickstart scheme. The debate also touched on the necessity to return to strong public finances as borrowing levels increase.
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