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Covid-19 Economic Support Package
14 October 2020
Lead MP
Anneliese Dodds
Debate Type
General Debate
Tags
EconomyEmploymentScotlandLocal Government
Other Contributors: 50
At a Glance
Anneliese Dodds raised concerns about covid-19 economic support package 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 Government must reform the Job Support Scheme to incentivise employers to retain staff, provide clear funding alongside new restrictions, fix gaps for self-employed individuals, and extend eviction bans. The current stance is leading to reduced business confidence and rising infections, which will ultimately force more national restrictions, costing jobs and livelihoods. A circuit breaker should be used to control the virus and build economic confidence.
Kevin Hollinrake
Con
Thirsk and Malton
Asked how many jobs a circuit breaker would cost, suggesting that multiple circuit breakers might be required according to SAGE.
Bill Esterson
Lab
Sefton Central
Emphasised the necessity of financial security for people during restrictions and criticised the 67% pay offer under the Job Support Scheme, suggesting it is insufficient for covering bills. Also mentioned the £1.3 billion underspend that could have helped those who had no support in the crisis.
Truro and Falmouth
Asked how Labour would explain their position to constituents with low infection rates, questioning if it is appropriate to impose restrictions where they are not needed.
Neil O'Brien
Con
Harborough, Oadby and Wigston
Cited the quick provision of extra business support in his constituency as an example of why a local approach works better than imposing uniform restrictions nationwide. Stressed that their lockdown brought cases down significantly.
Neil O'Brien
Con
Harborough, Oadby and Wigston
Points out that his constituency received financial support due to pub closures. Criticises Labour for opposing 10 pm curfew but supporting full economic shutdown.
Toby Perkins
Lab
Chesterfield
Asks if the Government's response would have more credibility if it was not following months of failure in testing and tracing. Questions whether a national lockdown is necessary given the current situation.
Chris Elmore
Lab
Bridgend
Argues that the Welsh system for tracking and tracing virus cases could be beneficially applied to England to save lives. Supports localised approaches over a blanket shutdown.
Questions whether Labour's stance on shutting down hospitality sector is appropriate, given positive impacts of Government support schemes such as Eat Out to Help Out.
Angela Eagle
Lab
Wallasey
Demands release of £40 million unspent business support in Liverpool city region for local authorities to help businesses during tier 3 lockdown. Criticises Government's handling of the crisis.
Highlights the increase in child poverty due to Conservative policies and asks what measures will be taken to address it.
Kevin Hollinrake
Con
Thirsk and Malton
Supports local-restrictions approach, citing Germany as an example of effective regional lockdown strategies over a national shutdown.
Rachael Maskell
Lab Co-op
York Central
Expresses concern about rising unemployment in York and asks for additional measures to support local businesses beyond the job support scheme.
Advocates for nuanced, regionally effective interventions rather than simplistic solutions. Emphasises that every intervention will need to be carefully tailored to specific regional needs.
David Linden
SNP
Glasgow East
Mr Linden criticised the Government for not acting with urgency, arguing that the plans do not go far enough in supporting industries affected by the pandemic. He emphasised the need to extend the furlough scheme and increase universal credit permanently.
James Cartlidge
Con
South Suffolk
The hon. Member for South Suffolk interjected that the Chancellor had provided adequate support, but this was dismissed by Mr Linden who pointed out that Cineworld theatres in Parkhead were closing despite supposed government assistance.
Toby Perkins
Lab
Chesterfield
Mr Perkins questioned whether SNP MPs supported a two-week circuit-breaker as advised by SAGE to address the health crisis and give time for test and trace measures to be effective.
He emphasised that the Government would ultimately have to pay for the consequences of their actions, suggesting creative long-term support options such as universal income or facing social consequences from high unemployment.
Mike Wood
Con
Kingswinford and South Staffordshire
Hospitality is a major employer in the UK, with millions of jobs dependent on it. The Chancellor's support measures have been crucial for many pubs and breweries during lockdowns but now new measures are needed to help businesses that face legal restrictions without being legally compelled to close. Many venues trade at a loss or cannot open due to tiered restrictions, highlighting the urgent need for additional support.
Maria Eagle
Lab
Liverpool Garston
Supports the motion urging the Government to provide substantial aid to areas under local restrictions like Liverpool. She highlights high unemployment and furlough figures in her constituency, warning that jobs are at risk as businesses face severe impacts due to non-essential travel advice and limited business hours without additional support.
Gareth Davies
Con
Grantham and Bourne
Acknowledges the Chancellor's extensive economic support but cautions about the financial burden on public finances. He calls for continued job support, green jobs creation, regulatory burdens reduction, private investment capital mobilization through initiatives like the Future Fund, and skills development to enhance productivity.
Alison McGovern
Lab
Birkenhead
Expressed gratitude for the opportunity to contribute and highlighted the difficulties faced by Merseyside due to unprecedented restrictions. She emphasised the need for a unique level of attention and intervention from the Treasury to prevent the local economy from collapsing. McGovern also underlined the importance of supporting the hospitality industry in Liverpool City region, stating that it is crucial for the city's economic future.
Neil O'Brien
Con
Harborough, Oadby and Wigston
Stressed the substantial support provided by the UK Government compared to other countries, noting that while France, Germany, and the US are spending about 7% of GDP on economic support, the UK is spending approximately 12%. He also mentioned the unprecedented borrowing levels due to necessary intervention. O'Brien highlighted various government initiatives such as the furlough scheme, job support scheme, loans, VAT cuts for hospitality businesses, grants, business rates holiday, and eat out to help out scheme. Additionally, he praised efforts in protecting incomes and creating new jobs through schemes like Kickstart and A-level qualification opportunities.
Naseem Shah
Lab
Bradford West
The Government's communication has been inconsistent, leading to significant economic impacts in constituencies like Bradford West. The unemployment rate is high and child poverty is increasing. Local businesses face severe challenges due to the furlough scheme's gaps and lack of targeted support.
Suzanne Webb
Constituency not mentioned
The Government has taken unprecedented measures to protect jobs and support businesses during the pandemic, with 13,000 jobs protected in her constituency alone. The furlough scheme, bounce back loans, and business grants have been crucial. Unlike the Opposition, this Government is focused on economic responsibility and accountability.
Paul Bristow
Con
Peterborough
In Peterborough, 15,600 jobs were protected by the furlough scheme, bounce back loans helped local businesses like Loxley Barbers survive, and grants worth over £22 million were awarded. The city's resilience is due to its people and Government support. However, some businesses could not be supported, and there are concerns about localised restrictions.
Warrington North
The Government's approach to the tier 2 restrictions and economic support has failed my constituents, leaving them behind. Businesses in Warrington North need a financial package to protect jobs urgently. Sectors such as aviation and nuclear are being let down by government inaction. The lowest paid workers are also suffering, with many excluded from support or living on less than the national minimum wage.
Kevin Hollinrake
Con
Thirsk and Malton
The Government's unprecedented levels of financial support for businesses have bolstered confidence. A national lockdown might be necessary but would damage business and consumer confidence, especially if it leads to multiple hits on the economy. We should look at sub-local lockdowns as seen in Germany for better control. Tier 2 restrictions are too rigid without furlough support, and we need a new iteration of the bounce back loan scheme and business interruption loans.
Christine Jardine
Lib Dem
Edinburgh West
Supports the Labour party's motion, calls for extension of furlough to June next year costing £10 billion, supports a two to three-week circuit breaker based on scientific advice. Criticises government's failure in creating an effective test and trace system over summer. Emphasises need for economic support after circuit-breaker period.
Anna McMorrin
Lab
Cardiff North
Critiques UK Government’s ineffectiveness in pandemic response, highlights Wales’ success with local health boards and local authorities on test, trace and isolate system. Argues for flexible economic support to protect jobs and livelihoods, criticises job support scheme's inefficacy. Supports reform of job support scheme to incentivise employers retaining staff.
Highlights Britain’s severe economic downturn compared to other European nations, forecasts high unemployment rates, and reveals a report showing 2 million jobs at risk with the current government measures. Criticises Chancellor's lack of leadership, calls for significant change in economic strategy, including higher taxes from wealthier individuals. Calls for immediate action on test and trace system and a circuit-breaker lockdown.
Carolyn Harris
Lab
Neath and Swansea East
A beauty salon owner is struggling with high cancellations due to local outbreaks of coronavirus, leading to a 20% loss in revenue. The sector has been undervalued throughout the pandemic despite pleas for financial support, leaving many women unemployed or insecure financially. Other industries have received VAT reductions and other forms of support, but the beauty and wellness sectors remain unsupported. Extending these measures would help businesses survive further closures.
Taiwo Owatemi
Lab
Coventry North West
The job support scheme offers insufficient security for employees compared to the furlough scheme, leaving many in poverty and possibly financial destitution. It will not cover businesses that choose to shut down or are told to close by local authorities due to tier restrictions, failing to address the needs of lower-income individuals on zero-hours contracts. HMRC estimates indicate several hundred thousand fewer people on payroll since the pandemic started, with economists predicting a 7.5% unemployment rate by year-end. In Coventry North West, unemployment has risen to 4,815 claimants and is expected to rise further.
Owen Thompson
Lab
Midlothian
The speaker emphasised the need for further financial support for businesses in the events industry, highlighting that a mere 22% wage bill coverage is insufficient and urging the government to extend furlough or provide additional funding. He criticised the lack of support for self-employed individuals and those excluded from aid schemes, suggesting the Scottish Government's approach as an example of better fiscal management.
Pontypridd
The speaker expressed concerns over the Chancellor's failure to provide promised financial support for areas affected by flooding and the ongoing pandemic restrictions. She called for sector-specific support, particularly for aviation and coach industries, as well as for small businesses on high streets that have been hit hard. Davies-Jones criticised the exclusion of 3 million people from government aid schemes.
Angela Eagle
Lab
Wallasey
The Government's failure to act decisively is leading to a high per-capita death toll in Europe and the largest economic hit in the G7. As the virus spreads, the Prime Minister's dithering leaves constituents in Wallasey facing a local lockdown with vital support disappearing at the end of the month.
Layla Moran
Lib Dem
Oxford West and Abingdon
The Government has forgotten about 3 million people who are excluded from its support packages. In Oxford West and Abingdon, the claimant rate has increased by 255% since March. Local businesses and self-employed individuals fear going out of business due to the lack of a safety net. The mental health impact on those suffering is severe.
Kate Osborne
Lab
Jarrow and Gateshead East
Workers and businesses in my constituency have been left in limbo under local restrictions without any clear support package. Kieran, a bar manager, has seen his business go from hiring to firing within weeks of the restrictions being introduced. The Chancellor’s indecisiveness is costing jobs and causing chaos.
Alex Cunningham
Lab
Stockton North
The UK has one of the highest covid-19 death rates and unemployment rate, with devastating impacts on communities in the north-east. The Government's response is failing to support businesses and families adequately.
Stephen Kinnock
Lab
Aberavon Maesteg
The local lockdowns are causing significant hardship for self-employed people, pubs, and hospitality firms in my constituency. The Government should listen to constructive criticism from the Opposition and fix their recovery plans by providing more support to businesses impacted by restrictions.
Kim Johnson
Lab
Liverpool Riverside
The latest claimant figures for my constituency show a doubling of unemployment since the pandemic began. The job support scheme is inadequate, forcing many into poverty. Liverpool's hospitality and leisure industries are critical to our economy and need more financial support.
Matt Western
Lab
Warwick and Leamington
The UK has seen not only the worst rate of COVID-19 per 100,000 but also the worst economic impact among G20 nations. The furlough scheme was a lifeline for many constituents in Warwick and Leamington, with about 16,000 people being furloughed. However, as we head into a second wave, the Government is pulling back support through measures like the job support scheme that incentivises keeping on one employee instead of two, offering minimal assistance to those who are excluded from financial support and viable businesses severely hampered by local lockdowns.
Mitcham and Morden
Businesses in certain sectors that have remained closed since March face unprecedented challenges. These businesses, such as Skyline Whitespace run by Mary Cole, are on the brink of collapse due to the lack of winter events, leading to sales plummeting. Despite not expecting special treatment but fair support like others who were allowed to reopen under Government-approved guidance, they receive little or no financial assistance and fear imminent redundancy.
Ruth Jones
Lab
Newport West and Islwyn
The pandemic has severely impacted families, businesses and communities across the UK. Businesses in Newport West such as John Atkins' Events Agency, Sam's pub, Charlie Magness' wedding photography business, and John Lewis' electrician service need financial support now to ensure their viability post-pandemic. The current lack of Government support leaves workers in limbo and creates chaos, fear and concern among constituents.
Chris Stephens
SNP
Glasgow Cathcart
The Chancellor's statement in March about supporting everyone has not been fulfilled. The newly self-employed, freelancers, and artists are among those left behind by the Government support schemes. The creative arts sector is crucial for bringing young people into work who prefer non-traditional employment environments. He urges the Government to consider poverty-proofing their policies as mass unemployment looms. Stephens highlights the importance of making the £20 uplift in universal credit permanent, noting that 4 million families could face support cuts if it is not made permanent. The current pandemic exacerbates financial challenges and health impacts for vulnerable households. Additionally, he calls for extended sector-specific support, particularly for aviation.
Toby Perkins
Lab
Chesterfield
The Labour party's suggestion of a circuit-breaker arrangement to control the virus is not taken lightly and acknowledges the economic costs. The Government has failed in PPE provision, lockdown timing, testing and tracing, leading to confusion among the public about tier restrictions. Pub owners find it disingenuous that they are allowed to open but cannot meet people outside their household legally, making businesses unviable. 3 million self-employed individuals have been excluded from support schemes despite conditions not being met for exclusion. The Government has failed many people, as evidenced by the lack of Conservative speakers in the debate.
Houghton and Sunderland South
The Labour MP criticised the Government for not providing adequate economic support to individuals and businesses under local restrictions. She emphasised that health measures and economic support must align, noting the Chancellor's retreat from providing necessary support since June. Bridget highlighted constituents' despair over job losses and business difficulties, arguing that families expect fairness rather than abandonment by the government. She also pointed out Labour’s previous warnings about removing furlough too soon and called for targeted support to prevent livelihoods from disappearing. Phillipson advocated for a job recovery scheme, consistent funding in local restrictions, reopening the £1.3 billion fund for businesses, fixing gaps in schemes for self-employed individuals, stopping waste on private test, trace, and isolate contracts, and ensuring public money is spent where needed.
Kevin Hollinrake
Con
Thirsk and Malton
Emphasised the need for a new iteration of loan schemes to support businesses during the next phase, suggesting that these loans should be available regardless of where business accounts are held.
Called for a correction to be made regarding inaccurate statements about Greater Manchester council leaders supporting a circuit break above tier 3 restrictions.
Eleanor Laing
Con
Nottingham North
Clarified that the points raised by other Members were matters for debate, not points of order. Emphasised the importance of notifying a Member before criticising them.
Chris Bryant
Lab
Rhondda and Ogmore
Responded to Eleanor Laing's clarification, suggesting that Ministers are fair game as they are accountable to the House. He highlighted the opportunity for Ministers to correct records if inaccuracies are pointed out.
Government Response
Welcomes Government's £200 billion package of support, including various schemes like Coronavirus Job Retention Scheme, Self-Employment Income Support Scheme, Eat Out to Help Out, Kickstart Scheme. Criticises Labour for not taking a balanced approach. The Chancellor stated that there is no bar on the Scottish Government setting a Budget in advance of the UK Budget, highlighting that this has been done before. He argued against suggestions that Scottish Government would be unable to set their budget. Outlined the winter economy plan's three key elements: job support scheme, cash grants for closed businesses, and additional funding for local authorities. He also addressed concerns about loans and welfare safety nets.
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