Commons Sense

House of Commons · Ministers' Questions

Covid-19: High Street Businesses

Tuesday 15 September 2020 · 3 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Government delivered a 200 billion support package for businesses affected by the covid-19 outbreak, including loan finance, job retention scheme, deferred VAT, and a 12-month business rates holiday for retail.
  • Government is considering an online sales tax as part of a fundamental review of business rates and invited views on reform.
  • Chancellor highlighted that support was targeted to vulnerable people, businesses, and families across the country, with evidence showing it reached the lower end of the income spectrum.

Topics (select to filter)

Questions & Answers

Q1 Duncan Baker
Economy Business & Trade
Context

The MP raised concerns about the impact of the pandemic on retail and high street businesses, emphasizing the need for fiscal measures to support them.

Question

What fiscal steps is he taking to support retail and high street businesses affected by the covid-19 outbreak?

Answer from Jesse Norman

The Government have delivered a package of support totalling close to £200 billion, including affordable Government-backed loan finance, the job retention scheme and deferred VAT. Retail businesses received a 12-month business rates holiday and retail, hospitality and leisure grants worth £10,000 or £25,000.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Duncan Baker
Taxation
Context

The MP highlighted the economic and social loss that online trading is causing for towns, cities and high streets, accelerated by the pandemic. He asked if the Government would now consider an online sales tax.

Question

Surely must not the Government now start to consider a VAT-style online sales tax?

Answer from Jesse Norman

The Government are committed to a fundamental review of business rates and have invited views on reform and potential alternative taxes, including an online sales tax. The intention is carefully to consider the merits and risks of introducing such a tax.

Partly answered

Not addressed: introducing an online sales tax specifically

How: Fundamental Review, Considering Merits And Risks

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 Wes Streeting Lab Ilford North
Economy Benefits & Welfare Local Government
Context

The MP pointed out that while wealthier inner-city areas have received substantial support, many constituencies in the Midlands and the north have received significantly less. He questioned whether this aligns with the Government's 'levelling up' agenda.

Question

While a number of wealthier inner-city areas have received over £100 million each in rate relief and small business grants, many constituencies in the midlands and the north have been left behind, with some receiving barely a fifth of that support or even less. Is that what the Government meant by levelling up?

Answer from Jesse Norman

The Chancellor highlighted that the intention has been to support vulnerable people, businesses and families across the country. The evidence appears to be that targeted support was felt at the lower end of the income spectrum, with a retail business in this country stating without the furlough scheme it would have laid off 30,000 people.

Not addressed: disparity in financial support for different regions during the pandemic

How: Supporting Vulnerable People, Targeted Support At Lower Income Spectrum

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)