Commons Sense

House of Commons · Ministers' Questions

Covid-19: Business Support

Tuesday 15 September 2020 · 4 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 3 Partly answered 1 Not answered 0

Key points

  • Government has delivered over 190 billion in support for businesses affected by the pandemic.
  • The Treasury is willing to engage on reviewing the furlough scheme rules for administrative errors.
  • A 10-year tax administration strategy was published to enhance digital tax administration in the UK.

Topics (select to filter)

Questions & Answers

Q1 Holly Mumby-Croft
Economy
Context

The MP is inquiring about measures taken by the government to financially assist businesses hit hard by the COVID-19 outbreak.

Question

What fiscal steps his Department is taking to support businesses affected by the covid-19 outbreak. The question highlights the need for financial assistance due to extreme disruption caused by the pandemic.

Answer from John Glen

The Government recognise the extreme disruption that the pandemic has caused businesses, which is why we have delivered a generous and comprehensive package of support, in line with best practices globally, totalling more than £190 billion. That has included grants, loans, the furlough scheme, the self-employment income support scheme, deferred VAT payments, business rate reliefs and protections for commercial tenants.

Answered
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Q2 Bim Afolami Con
Employment Benefits & Welfare
Context

The MP raises concerns about businesses missing out on the furlough scheme due to administrative errors, affecting small businesses particularly.

Question

Will he and the Treasury consider reviewing the rules of the furlough scheme to deal with cases where some small businesses missed out on that scheme through administrative error? Will he discuss that with me separately to see whether we could review the rules to deal with that sort of administrative mistake?

Answer from John Glen

Obviously, the scheme has helped 1.2 million employers, and that involves 9.6 million jobs. I am happy to engage with my hon. Friend on the specific example he raises. No appeal process is available for those who have made administrative errors, but if a mistake has been made by Her Majesty's Revenue and Customs, a complaints procedure can be followed. I will follow up on this with him personally.

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Q3 Miriam Cates
Economy Science & Technology Business & Trade
Context

The MP acknowledges the government's support for businesses during the pandemic, emphasizing HMRC's real-time information system that helped grants reach employers quickly.

Question

What is the Treasury doing to build on those successes and make the UK one of the most digitally advanced places in the world to run a business? The question asks about building on HMRC's success with digital tax administration, cutting costs for businesses, and making the UK more digitally advanced.

Answer from John Glen

My hon. Friend is right; it is incumbent on the Government, in all Departments, to look at how we can refine the way we operate, to be more effective. That is why in July my right hon. Friend the Chancellor published a 10-year tax administration strategy, setting out our vision for a modern system, which will involve extending making tax digital to more taxpayers.

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Q4 Holly Mumby-Croft
Taxation
Context

The MP highlights the importance of a reduced VAT rate for hospitality businesses, which was crucial in helping them survive during lockdowns.

Question

Will my right hon. Friend consider extending that VAT cut beyond January next year, to help those businesses with that recovery? The question is about considering an extension of the reduced VAT rate for the hospitality sector past its current expiry date.

Answer from John Glen

Clearly, every intervention has a cost, and that measure provided support for 150,000 businesses, protecting 2.4 million jobs. As we approach future fiscal events, all contributions and businesses cases for changes will be looked at carefully by my right hon. Friend the Chancellor.

Partly answered

Not addressed: The specific request to extend the VAT cut beyond January was not directly addressed; instead, it was referred to a review process.

How: All Contributions And Businesses Cases For Changes Will Be Looked At Carefully

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