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Covid-19: Support for UK Industries
25 June 2020
Lead MP
Theresa Villiers
Debate Type
General Debate
Tags
EconomyTaxationEmploymentBusiness & Trade
Other Contributors: 35
At a Glance
Theresa Villiers raised concerns about covid-19: support for uk industries in the House of Commons. Other MPs contributed to the debate.
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 have responded with a comprehensive package of support measures, including the furlough scheme for over 9.1 million workers and grants from the self-employed income support scheme to more than 2.6 million people. Over 863,000 companies received bounce-back loans worth £26 billion, while small businesses in retail, hospitality, and leisure sectors have benefited from cash grants of up to £25,000 and a business rates holiday for 12 months. The Government's intervention has been crucial in preventing significant unemployment and the collapse of thousands of businesses.
Jeff Smith
Lab
Manchester Withington
The concert and festival industry faces severe challenges due to their delayed recovery timeline and gaps in existing support schemes. Many workers are self-employed or freelance, falling through the cracks in both furlough and self-employment assistance programmes.
Rushanara Ali
Lab
Bethnal Green and Stepney
The Government's job retention scheme has left out more than 1 million people, including freelancers in theatre and new starters. There is a need for additional support to help these individuals through the crisis.
Stephen Hammond
Con
Wimbledon
Compliments the Government on its economic support and highlights issues with the job retention scheme, suggesting modifications. Emphasises the need for flexibility in furloughing employees to support business reopening. Raises concerns about small businesses' eligibility under the real-time information submission requirement and suggests minor adjustments. Discusses the self-employment income support scheme, pointing out exclusions for those who started businesses last year and recommends equal footing for directors of small limited companies. Advocates for regional recognition in rateable values supporting retail, hospitality and leisure sectors, expressing concern over inconsistent interpretations of support eligibility by councils. Suggests guidance from MHCLG to standardise business rate relief across regions. Urges government support for the arts and culture sector.
Mark Tami
Lab
Alyn and Deeside
Highlights the severe impact of the pandemic on the aerospace industry, noting significant reductions in production rates at Airbus and furloughing of workers. Expresses concern over non-qualification for some furloughed workers who worked on ventilator projects and urges the government to urgently address this issue. Discusses expected prolonged recovery times for passenger demand and highlights potential devastation in supplier chains without intervention. Advocates for a strategic plan that includes all parts of the industry, from Airbus to airlines and suppliers. Cites measures taken by other countries to support their aerospace sectors, emphasising the need for similar comprehensive programmes in the UK. Proposes specific actions such as job retention schemes, R&D investment, retiring older aircraft, investing in decarbonisation, and bringing forward defence projects to secure the future of the industry.
Darren Henry
Con
Broxtowe
Thanked his predecessor and acknowledged the contribution of Windrush generation. Discussed his family background, service in the Royal Air Force, and commitment to supporting local hospitals and mental health reforms. Emphasised the importance of investment in Broxtowe’s economy, including HS2 developments.
Newcastle upon Tyne North
Acknowledged the Government support for businesses during the pandemic but raised concerns about those who have slipped through gaps. Highlighted challenges faced by the aviation sector, specifically Newcastle airport’s need for air bridges and business rates relief. Emphasised the importance of protecting jobs and supporting the cultural and entertainment sectors.
Virginia Crosbie
Con
Ynys Môn
Crosbie discusses the economic decline in her constituency of Ynys Môn over the past two decades, highlighting job losses and their impact on Welsh culture. She acknowledges the importance of financial support for businesses during lockdowns but also emphasises the need to diversify the economy beyond tourism due to its vulnerability. The island's potential in tidal power generation and nuclear energy is highlighted as a way forward.
Navendu Mishra
Lab
Stockport
Mishra stresses the importance of supporting industries responsibly while prioritising public health, especially given that Greater Manchester still has the highest R rate in the country. He advocates for initiatives such as rent holidays for market traders and direct support to small breweries like Robinsons in Stockport, which have faced significant drops in sales due to pub closures.
Greg Smith
Con
Mid Buckinghamshire
Smith highlights the need for specific sectoral support during recovery. He mentions the coach industry as an example, discussing its financial difficulties and the need for social distancing measures which limit viability. He also stresses the importance of supporting aviation and freight to ensure new free trade deals can be facilitated.
Stephen Kinnock
Lab
Aberafan Maesteg
Forty years ago, manufacturing accounted for 30% of GDP in this country. It now stands at barely 9%. If there is to be any serious agenda for levelling up in this country, we need a modern manufacturing renaissance to close the gap between the regions, to rebalance between services and manufacturing, and to be a country that is actually exporting again, which has a massive impact on our balance of trade. Steel is the backbone of manufacturing and vital as a foundation industry. The Port Talbot steelworkers in my constituency make green steel, which is essential for photovoltaic cell production and at the cutting edge of innovation. Tata Steel needs Government-backed loan support to weather the storm caused by covid-19 and help us build back better.
Jerome Mayhew
Con
Broadland and Fakenham
The Government responded magnificently with emergency loan schemes like CBIL and the bounce back loan scheme. However, as we come out of the initial crisis, businesses will have to focus on repaying their covid debt in just five or six years. This is detrimental to economic growth. A solution could be placing the loans in a special purpose vehicle, turning them into securities with varying maturities of up to 30 years, reducing capital repayments by a factor of six and freeing up funds for investment in growth.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Many small limited companies are excluded from Government rescue measures. They make their money during the tourism season to survive winter, but this year they may not earn enough to see them through. The tourism businesses in my constituency need a specially tailored package based on current measures to help them through the longer period.
Don Valley
The furlough scheme and loans have been well received, but things will look different post-covid. Building companies should start finishing houses they started pre-covid and press suppliers to ensure materials are available, pay everyone a little earlier and get confidence back in business. Measures such as reducing VAT or national insurance contributions would help businesses move forward.
Sally-Ann Hart
Con
Hastings and Rye
Emphasised the need for continued support in tourism, hospitality and arts sectors. Mentioned an email from a constituent who owns Rock a Nore Kitchen expressing gratitude towards the Government's economic package of support that helped save 11,000 jobs and over 5,000 self-employed individuals in her constituency.
Kevan Jones
Lab
Chester-le-Street
Critiqued the uneven impact of coronavirus on poorer communities. Mentioned that unemployment is now 12% above national average and suggested support measures for small and medium-sized enterprises, Government projects in the region, and a taskforce for levelling up the north-east.
Fay Jones
Con
Brecon and Radnorshire
Discussed cancellations of major events due to coronavirus such as Hay-on-Wye literary festival, Brecon jazz festival, Green Man festival, and Royal Welsh Show. Emphasised the importance of these events for employment, economic benefit, and social interaction in rural communities.
Caroline Lucas
Green
Brighton, Pavilion
Lucas called for urgent life support measures for the creative sector, highlighting the economic and cultural impact of job losses in Brighton. She urged ministers to introduce a similar fund to other European countries like Germany's €50 billion rescue package. Additionally, she criticised the self-employed scheme for its short duration and failure to recognise diverse forms of income among freelancers and new start-ups. Lucas also emphasised the need for a green recovery that prioritises human and planetary well-being over GDP growth.
Eleanor Laing
Con
Epping Forest
Laing warned members about limited time left in the debate and advised those not speaking to prepare accordingly, without providing her own detailed contribution to the topic under discussion.
Mike Wood
Con
Kingswinford and South Staffordshire
Wood highlighted the significant impact of the pandemic on hospitality and related sectors, emphasising the need for further support as businesses rebuild. He supported a recovery plan in the west midlands that includes a programme to decarbonise industrial clusters, aiming to create jobs and stimulate economic growth while adhering to environmental standards.
Rushanara Ali
Lab
Bethnal Green and Stepney
Ali discussed the severe impact of the pandemic on employment across various industries, particularly highlighting job losses in sectors such as Centrica, Nissan, British Airways, and Rolls-Royce. She urged the government to provide support for those who did not qualify under existing schemes and emphasised the importance of a credible economic plan that is inclusive and protects everyone, especially young people.
Anthony Browne
Con
South West Bedfordshire
Browne acknowledged the Government's rapid response to support businesses during the pandemic, praising its scale and speed despite recognising gaps in certain sectors. He emphasised the importance of private enterprise leading the economic recovery and encouraged continued review and adaptation of support schemes by the government.
Taiwo Owatemi
Lab
Coventry North West
The impact of the coronavirus pandemic has been devastating in Coventry, with 270 deaths and a high number of unemployment benefit claims. There are concerns about job losses at Rolls-Royce and the lack of support for small businesses like Exhibit 3Sixty. The Government's support package is not enough to address these issues.
The Treasury's measures in response to the pandemic are remarkable, but we need a new business and industrial strategy post Brexit that focuses on high-tech manufacturing and engineering capacity. We must defend our companies from hostile foreign takeovers if they endanger national security.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
London Luton airport, a key jobs provider and fund raiser for local services, has seen passenger numbers plummet by 98%, leading to severe financial cuts for the council. The Government's decision not to introduce a sector-specific support package for aviation is deepening the crisis.
The Government's actions in response to the pandemic have been unprecedented and beneficial, including schemes such as job retention and business interruption loans. It is vital that we put green concerns at the heart of our strategy moving forward.
Sarah Olney
Lib Dem
Richmond Park
The crisis has highlighted the complexity of the UK economy and the need for better preparation for economic impacts during a pandemic. The job retention scheme was invaluable but missed out many sectors like small businesses, entrepreneurs, and freelancers. Support must focus on key industries and those that will take longer to recover, such as theatres and other parts of the creative sector.
Richard Thomson
SNP
Caithness, Sutherland and Easter Ross
The UK Government’s economic support has significant gaps; for example, the furlough scheme missed out new self-employed individuals and directors paid through dividends. The Scottish Government filled some gaps with a £2.3 billion package but faces constraints due to devolution limitations and borrowing powers. There is a need for structural changes such as revised fiscal frameworks and sector deals like one for the energy sector.
Greenwich and Woolwich
The Opposition welcomed the unprecedented measures taken by the Government to support the economy during the pandemic but calls for further improvements in existing financial schemes, targeted sector-specific support packages, and a strategic approach to recovery. The debate highlights industries like early years, arts and creative sectors, aviation, hospitality, aerospace, motor industry, steel, and others in urgent need of help due to economic impacts of the pandemic.
Nigel Huddleston
Con
Droitwich and Evesham
The Minister acknowledges valuable contributions from Members on both sides and expresses appreciation for their work highlighting issues important during a public health emergency. He did not provide specific details about future actions or changes to existing schemes.
Jim Shannon
DUP
Strangford
The Member requested the Minister's help for Bombardier in his constituency where 600 manufacturing jobs are under threat. He asked the Minister to accept a letter with Bombardier’s 16-point plan and arrange a response.
Nigel Huddleston
Con
Droitwich and Evesham
The Government has provided extensive financial support during the pandemic, including over £26 billion in bounce back loans alone. Support for businesses includes a business rates holiday worth nearly £10 billion for retail, hospitality, and leisure sectors. Additionally, nurseries were included on the list of recipients for the business rate holiday.
Munira Wilson
Lib Dem
Twickenham
Acknowledging the contributions from the creative industries to the economy and mental wellbeing, the hon. Member pointed out that many freelancers and directors of limited companies in her constituency have been left without sufficient support.
Nigel Huddleston
Con
Droitwich and Evesham
The Minister noted ongoing conversations about further support for the creative industries and thanked Members for their thoughtful contributions, highlighting specific sectors and individuals who have raised important issues during the debate.
Theresa Villiers
Con
Chipping Barnet
Thanking those behind the e-petitions for bringing these issues to light, the hon. Member highlighted gaps in provision that need addressing and echoed calls for support and a plan for reopening the performing arts and culture sector.
Eleanor Laing
Con
Epping Forest
The debate ended with a note of appreciation for the brevity and discipline shown by speakers, allowing the House to conclude slightly early. The motion was then agreed upon.
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