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The Economy
27 April 2020
Lead MP
Rishi Sunak
Debate Type
General Debate
Tags
EmploymentBenefits & Welfare
Other Contributors: 37
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:
Lead Contributor
Opened the debate
The Chancellor outlined a comprehensive economic response to the coronavirus, noting that more than 1.5 million new claims have been made to universal credit, over 4 million jobs furloughed, and a quarter of businesses have stopped trading. He highlighted interventions such as the Coronavirus Jobs Retention Scheme, which has seen half a million employers apply for help to pay wages for over 4 million furloughed jobs. Additionally, he announced a new micro-loans scheme providing bounce-back loans up to £50,000 with Government support covering interest for the first year.
Rishi Sunak
Con
Richmond and Northallerton
Emphasised the seriousness of the economic situation due to coronavirus and outlined measures such as increased funding for NHS, job retention schemes, self-employed income support, business rate relief, cash grants, VAT deferral, and loans to support businesses. He highlighted that interventions have saved millions of jobs but acknowledged not all can be protected.
Rishi Sunak
Con
Richmond and Northallerton
The Chancellor responded by detailing plans to launch bounce-back loans from next Monday, addressing criticisms about the comparison with Switzerland's economic support measures, and emphasised the comprehensive nature of UK fiscal interventions. He also mentioned significant investments into tax credits, universal credit, and other welfare schemes to support vulnerable populations.
Theresa Villiers
Con
Asked for a roadmap from the Government on how businesses can prepare for a phased modification of lockdown measures, highlighting the need to mitigate further economic damage as the full lockdown continues.
Rishi Sunak
Con
Richmond and Northallerton
Responds to Alison Thewliss's points. Acknowledges measures for the most vulnerable including strengthening universal credit and tax cuts. Describes the bounce-back loan scheme which will not ask for forward-looking information from companies but rather self-certification and identity checks by banks. Indicates that about 20,000 new overdrafts have been extended with 60,000 capital repayment holidays. Highlights strong guidance set out in a letter by the FCA urging insurance companies to behave responsibly.
Andrea Leadsom
Con
South Northamptonshire
Congratulates the Chancellor on the bounce-back loans scheme which she believes will make a huge difference to small businesses. Asks for reassurance that when restrictions can be lifted, employers and entrepreneurs will be given some notice and clear guidelines to restart their supply chains with confidence.
Edward Davey
Lib Dem
Kingston and Surbiton
Welcomes the micro-loans scheme but asks for more help for self-employed people who are not in the scheme, such as cleaners, builders, taxi drivers, and musicians. Suggests protecting the taxpayer from fraud while helping these individuals.
Steve Brine
Con
Hampshire Fareham
Welcomes help for self-employed but highlights those who have been left out due to earning over £50,000 or being company directors not earning the majority of their income by this route. Asks if Chancellor is still open to new ideas.
Matt Western
Lab
Warwick and Leamington
Welcomes the Chancellor's announcement but argues that we have been too slow and deliberative compared to countries like France and Germany which have lent more than the UK.
Graham Brady
Con
Altrincham and Sale West
Asks for common-sense opportunities such as allowing open-air markets to trade similarly to supermarkets. Also asks for changes to the furlough scheme to accommodate a gradual return to work.
Angela Eagle
Lab
Wallasey
Welcomes Chancellor’s micro-loans scheme but criticises the complexity of the CBILS loans, calling for simplification to ensure more of the £330 billion potential loans reach businesses.
Rishi Sunak
Con
Richmond and Northallerton
Acknowledges need for simpler loan processes, cites improvements made, mentions over 20,000 CBILS loans issued and high acceptance rates. Emphasises plans to simplify further in future.
Compliments the Chancellor on his policies, urges him to take early opportunities to open up the economy safely while ensuring he knows how to unwind interventions for sustainable prosperity.
Peter Kyle
Lab
Hove and Portslade
Calls for conversations with companies that have avoided taxes in past years but now rely on government support, advocating a 'business as better' approach post-recovery.
Congratulates the Chancellor on bounce-back loans and other measures, requests review of package to help transition out of lockdown successfully without increasing redundancies.
Questions why the Holyhead-Dublin ferry route was ignored in Government support announcements despite its economic importance for Northern Ireland, Great Britain and North Wales.
Harriett Baldwin
Con
West Worcestershire
Thanks Chancellor for quick response to aid constituents, suggests ending the fair fuel stabiliser and implementing a windfall tax on hedge fund managers as economy recovers.
Jim Shannon
DUP
Strangford
Requests extension of small business support scheme and increase in underwriting cover for loan schemes to better serve businesses without premises, especially those in the hospitality sector.
Congratulates Chancellor on scale and speed of packages, emphasises importance of cash and liquidity for businesses and individuals during recovery period.
Questions about furlough scheme payments for workers relying on commissions, requests confirmation that a solution will give those workers access to 80% of their typical earnings.
Thanks Chancellor for job retention scheme and requests review of payroll run process to ensure new starters who are laid off can still benefit from the furlough scheme.
Rishi Sunak
Con
Richmond and Northallerton
Announced the expansion of the job retention scheme to cover more people, highlighting that around 30 million individuals can benefit from it. Emphasised the importance of supporting workers attached to their jobs through interventions such as business rates holidays, bounce-back loans, and grants for specific sectors.
Daisy Cooper
Lib Dem
St Albans
Expressed concern about pubs and restaurants facing difficulties due to restrictions. Called on the Government to extend the retail, hospitality and leisure grant fund to properties with a rateable value up to £150,000, instruct pubcos to stop charging rent, and extend the furlough scheme for affected businesses.
Julie Marson
Con
Hertford and Stortford
Praised the economic package introduced by the Chancellor as historic in scope, providing an absolute lifeline to people and businesses. Encouraged larger businesses not needing support to take it up for the national interest.
Stephen Farry
Ind
South Antrim
Expressed scepticism about a V-shaped economic recovery and proposed that some form of future economic stimulus may be needed to restart the economy after lifting restrictions.
Andrew Selous
Con
Worthing West
Asked for further assistance for tourism and leisure businesses, which were denied by their banks. Highlighted the need for more financial support beyond £50,000 from the bounce-back scheme.
Andrew Gwynne
Ind
Gorton
Brought up the issue of pub tenancies taken on between the last eligible date and lockdown, arguing that these businesses should be provided assistance despite being in a difficult situation due to timing.
John Lamont
Con
Berwickshire, Roxburgh and Selkirk
Asked about additional funding provided to Scotland through the Barnett consequentials as part of the Chancellor's announcement. Highlighted the importance of supporting all parts of the Union during challenging times.
Angus MacNeil
SNP
Na h-Eileanan an Iar
Critiqued austerity policies and suggested avoiding a repeat after the crisis, while also questioning the Chancellor's approach to monetary financing for fiscal spend.
Steve Double
Con
St Austell and Newquay
Asked about further support for the tourism and hospitality sector as they are among those hardest hit during lockdown. Emphasised the importance of considering seasonal factors affecting these businesses.
Barnsley South
Cited research indicating that ex-industrial towns, including Worsbrough in her constituency, are among those most economically at risk from the crisis. Asked for specific plans to help such areas cope and recover.
Robin Millar
Con
Aberconwy
Asked about measures to balance economic stimulation with public health concerns in coastal communities, highlighting the potential impact of a second wave on tourism-dependent economies like Llandudno.
Rishi Sunak
Con
Richmond and Northallerton
Emphasised the need to ensure free trade while maintaining security of supply for essential goods, responded to concerns about protectionism, and detailed measures to support agriculture and small businesses.
Stewart Hosie
Party unknown from provided text
unknown constituency
Expressed agreement on the economic impact of covid-19 and questioned the Chancellor about resistance to general protectionist moves in trade.
Andrew Murrison
Con
South West Wiltshire
Welcomed the statement and asked for additional support measures to assist agricultural businesses, particularly in light of disrupted non-domestic sales and halted diversification schemes.
Margaret Ferrier
Party unknown from provided text
unknown constituency
Asked about the availability of funding through the coronavirus business interruption loan scheme for show families who have purchased rides and equipment on asset finance.
Kevin Hollinrake
Con
Thirsk and Malton
Thanked the Chancellor for his efforts, welcomed changes to the micro loan scheme, including removal of forward viability test, and requested further simplification in the main scheme.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Suggested a universal basic income as an alternative to current support schemes for small businesses and self-employed individuals who are falling through gaps.
Government Response
The Chancellor emphasised the need to remain disciplined in adhering to current emergency measures while preparing for phase two, during which economic and social restrictions will be refined gradually. He assured that preparations are ongoing and that more details would be provided by the Government in coming days. Responds to all queries, reiterating government's commitment to simplifying loan processes, prioritising safe reopening of economy, and ensuring fair tax contributions. Acknowledges the need for review and adjustment in certain schemes.
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