Commons Sense

House of Commons · Ministers' Questions

Topical Questions

Tuesday 24 March 2020 · 17 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 17 Partly answered 0 Not answered 0

Key points

  • Ministerial Questions addressed an unprecedented challenge posed by the coronavirus.
  • The Chancellor announced measures to protect people's health, livelihoods, and the economy.
  • The Treasury committed over 7 billion to support 90% of UK firms with a wage subsidy scheme.

Topics (select to filter)

Questions & Answers

Q1 Joy Morrissey Con Beaconsfield
Business & Trade
Context

The Chancellor is addressing an unprecedented challenge due to the coronavirus spread.

Question

If he will make a statement on his departmental responsibilities. The start-up loan programme has been hugely successful in getting thousands of new businesses off the ground, particularly in my constituency of Beaconsfield. Does my right hon. Friend agree that the announcement that the programme will be extended is hugely welcome news for entrepreneurs right across the country?

Answer from Rishi Sunak (The Chancellor of the Exchequer)

We are facing an unprecedented challenge as a country, as a Government and as a society. The spread of the coronavirus has precipitated the extraordinary but necessary actions taken by this Government over the past week to protect people's health and livelihoods and the economy we all rely on... My hon. Friend is a champion for entrepreneurship in her constituency, and rightly so. The start-up loan programme is an excellent programme, providing grants of £25,000 for budding entrepreneurs.

Answered

Not addressed: None

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Q2 John Martin McDonnell Lab Hayes and Harlington
Employment
Context

The Chancellor has been putting in place economic interventions to address the impact of the coronavirus.

Question

May I again welcome much of what the Chancellor is doing, and say that we wish to work with him as positively as we possibly can in this very difficult period?...I understand that he is doing his best and I understand the complications, but he has also said that for zero-hours workers, employers may compensate on the basis of average hours worked. The unions in this field representing those workers have urged that this should be mandatory and applied to all zero-hours and variable-hours workers based on average earnings over the previous weeks.

Answer from Rishi Sunak (The Chancellor of the Exchequer)

As we are putting in place the detailed guidance for the scheme, we are actively considering the question of how best to average the earnings of people in this situation. I very much take on board the suggestion that the right hon. Gentleman has made, and I know that my team are engaging with those unions as we speak to try to get the details right.

Answered

Not addressed: None

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Q3 John Baron Con Basildon and Billericay
Economy Business & Trade
Context

The Chancellor is implementing interventions specifically targeted at smaller businesses.

Question

I commend the Chancellor and his team for the robust policy response that we have seen to this crisis so far, but may I ask them to continue to focus laser-like on the issue of cash flow, which is particularly important to smaller businesses, particularly important to the workforce, and particularly important to the vulnerable groups in society?

Answer from Rishi Sunak (The Chancellor of the Exchequer)

My hon. Friend is absolutely right about the importance of cash flow, which is why we have targeted our interventions specifically at smaller businesses by providing extra cash flow support... We have done so through the £10,000 grant to every business in receipt of small business rate or rural rate relief and, indeed, through the deferral of VAT...

Answered

Not addressed: None

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Q4 Ruth Cadbury Lab Brentford and Isleworth
Benefits & Welfare Children & Families
Context

The financial impacts of the coronavirus on various groups are being addressed.

Question

I acknowledge that the Government are dealing with an incredible number of challenges at this time... The financial challenges of families with children have not yet been specifically addressed, so will the Treasury listen to the Child Poverty Action Group and work with the Department for Work and Pensions on a fairly simple solution that will put money directly into the pockets of families with children, which is temporarily to increase child benefit?

Answer from Jesse Norman (The Parliamentary Under-Secretary of State for Economic Affairs, Department for Business, Energy and Industrial Strategy)

I am very grateful to the hon. Lady for the suggestion, and we will certainly look closely at the Child Poverty Action Group's recommendation.

Answered

Not addressed: None

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Q5 Simon Baynes Con Clwyd South
Economy Business & Trade
Context

The Chancellor has been implementing various schemes to support businesses during the crisis.

Question

On behalf of my constituents in Clwyd South, may I commend the Treasury team for its hard and speedy work over the past couple of weeks? Will my right hon. Friend confirm that this Government will stand behind businesses, small and large, in Clwyd South and elsewhere in Wales and the UK as the crisis progresses?

Answer from Rishi Sunak (The Chancellor of the Exchequer)

My hon. Friend is absolutely right that we must stand behind our businesses at this critical time, particularly those in his constituency... We have committed over £7 billion to support 90% of UK firms with a wage subsidy scheme.

Answered

Not addressed: None

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Q6 Kevan Jones Lab Auckland, North East
Education Employment
Context

Supply teachers have been affected by the school closures due to the coronavirus pandemic.

Question

Supply teachers play a vital role in our schools. Many thousands, including my constituent Ellie Atkinson, have found themselves out of work. May I urge the Treasury to look at ways of supporting these workers, either through direct financial support or ensuring they can work in open schools?

Answer from Steve Barclay (Financial Secretary to the Treasury and Paymaster General)

The right hon. Gentleman will know that school budgets have been allocated, so the schools already have that money to spend; that will not change. The announcement that the Chancellor has made about the PAYE system is about supporting people through that mechanism. If the right hon. Gentleman has other proposals, I am happy to engage with him to discuss them further.

Answered
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Q7 Nicola Richards Lab West Bromwich East
Employment Benefits & Welfare
Context

Charities and community care providers are working hard to protect the vulnerable during the coronavirus pandemic.

Question

I welcome my right hon. Friend's world-leading package of support to businesses. Many charities in West Bromwich East, including Sandwell Community Caring Trust, are working extremely hard to protect the vulnerable. Will he confirm that all charities paying through PAYE will be eligible for the scheme and relief package?

Answer from Rishi Sunak (Chancellor of the Exchequer)

I thank my hon. Friend for her support, and join her in paying tribute to Sandwell Community Caring Trust, which we will be relying on through this difficult period. I can confirm that charities are eligible for the job retention support programme. Further to that, we have allocated extra funding to the Ministry of Housing, Communities and Local Government to provide money to local charitable or caring organisations, especially to help those we are attempting to shield—the most vulnerable—in order to protect them against the effects of the coronavirus.

Answered
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Q8 Desmond Swayne Con New Forest West
Taxation
Context

The Chancellor has been considering using historical tax data to impute wage equivalents for the self-employed.

Question

The Chancellor has been more creative and accommodating than his equivalents in any other jurisdiction. How practical is it to use historical tax data to try to impute a wage equivalent for the self-employed?

Answer from Rishi Sunak (Chancellor of the Exchequer)

I thank my right hon. Friend for his comments. It is certainly possible to use those historical returns. They are a year and a half out of date, so they will be necessarily imperfect. They also do not provide an easy way to distinguish between those who are deserving of support and whose incomes are being affected by what is happening, and those who are much wealthier and whose incomes are potentially increasing currently, but they do provide a basis and a universe to look at.

Answered
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Q9 Bill Esterson Lab Sefton Central
Benefits & Welfare
Context

The universal credit system is experiencing significant pressure due to the coronavirus pandemic.

Question

When I mentioned earlier that the universal credit system was overwhelmed, the Minister may not quite have taken on board the point I was raising. A self-employed worker sent me a screenshot of their attempts to use the system yesterday; 33,383 people were ahead of them in the queue to use the claims section of the website. Unless this is resolved, people who need money right now—limited though that money is under universal credit—simply will not be able to get hold of it through the system.

Answer from Steve Barclay (Financial Secretary to the Treasury and Paymaster General)

The hon. Gentleman raises an important point about the pressure on the Department for Work and Pensions at this time. That is a key reason why the design of the schemes that we have been looking at and that have been put forward by the Chancellor do not add complexity and pressure on the DWP. We have been actively working on identifying where we can free up and reprioritise resource in DWP to assist with this issue. I have been discussing the matter with the Secretary of State for Work and Pensions, and working closely with her on it.

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Q10 Wes Streeting Lab Haydock
Economy Employment Benefits & Welfare
Context

A newspaper reports that an announcement will be made in the next 24 hours.

Question

The Chancellor has given a longer timescale of end of April previously. He asks for reassurance to anxious self-employed people that an announcement will be made very shortly.

Answer from Rishi Sunak (Chancellor of the Exchequer)

We hope to have something to say very shortly. Implementation will take longer for capacity issues at HMRC and DWP, but we plan to provide guidance relatively soon.

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Q11 Jacob Young Con in West Yorkshire
Employment
Context

The Chancellor aims to build the new scheme by end of April.

Question

When can employers access the scheme for job retention and furloughed workers?

Answer from Rishi Sunak (Chancellor of the Exchequer)

Detailed guidance is available, further guidance will be provided. The aim is for the scheme to be operational by end of April, with claims backdated to 1 March.

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Q12 Chris Matheson Lab Aberavon
Context

Companies are under contract obligations without clear guidance on how long the crisis will last.

Question

Do the Government have any plans to provide guidance on cancelling or delaying events, particularly relevant to insurance claims?

Answer from John Glen (Financial Secretary to the Treasury)

We are working closely with the insurance industry and have established that policies for non-specified diseases are triggered by recent announcements. The Financial Secretary is happy to look at specific cases.

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Q13 Stephen Crabb Con in the UK
Economy Business & Trade
Context

Small businesses often faced challenges with banks in past economic crises.

Question

What can the Chancellor say about the posture he wants to see from the banks at this time?

Answer from John Glen (Financial Secretary to the Treasury)

The Chancellor has had dialogue with individual bank heads. Banks are expected to take sympathetic forbearance measures, and the loan scheme is interest-free for first 12 months.

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Q14 David Linden SNP in Scotland
Taxation Energy
Context

The Prime Minister's message for constituents to stay at home could lead to higher energy bills.

Question

Are the Government willing to look favourably upon a cross-party letter asking for reduction in VAT on energy bills?

Answer from Jesse Norman (Financial Secretary to the Treasury)

We are certainly very happy to look at whatever letter the hon. Gentleman or his colleagues may wish to present.

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Q15 Kevin Brennan Lab Cardiff West
Taxation Benefits & Welfare
Context

The Chancellor has mentioned wealthy individuals whose incomes might be increasing.

Question

Will he please provide some more reassurance that it is his intention to provide help to those people who have lost their entire income overnight?

Answer from Rishi Sunak (Chancellor of the Exchequer)

Historical tax return data does not provide current income status. The issue is finding a way to target help at those who most need it, rather than providing blanket cash subsidies.

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Q16 Mark Pritchard Con The Wrekin
Local Government
Context

Cash flow is becoming a real issue for many local councils, with many having to borrow.

Question

Will the Chancellor join me in thanking Shropshire Council and the hard-working people at Telford and Wrekin Council? Could he encourage his officials in the Treasury to be a bit more flexible as to where finance can come from and the use of reserves?

Answer from Rishi Sunak (Chancellor of the Exchequer)

I am happy to look at specific suggestions. I pay tribute not only to my hon. Friend's council but to all councils for the sterling work they are doing in delivering our grant schemes to many of their small local businesses. We are in dialogue already with the Ministry of Housing, Communities and Local Government, to ensure that councils' cash-flow needs are adequately met. There are things we are doing actively in terms of the timing of the various grant payments we make, to ease some of the near-term cash-flow pressures.

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Q17 Jim Shannon DUP Strangford
Business & Trade
Context

The emergency cash grant scheme is intended to help businesses with their financial needs.

Question

Can the Chancellor clarify whether the emergency cash grant scheme is intended to help per shop for businesses with more than one premise in different towns, or is it just for the business as a whole?

Answer from Rishi Sunak (Chancellor of the Exchequer)

The detailed eligibility criteria are online and will be provided by local authorities. The grants of £10,000 are done on a per premise basis for businesses that are in receipt of small business rate relief and rural rate relief. There are larger grants for those in the retail, leisure and hospitality sector of up to £25,000. The Business Secretary has written already to local authorities, which are, as we speak, writing to businesses that are eligible for those grants to seek their bank details and start making cash payments as soon as is practically possible.

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