Commons Sense

House of Commons · Ministers' Questions

Local Covid-19 Restrictions: Economic Support

Tuesday 20 October 2020 · 9 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 4 Not answered 0

Key points

  • Minister announced grants of up to 3,000 a month for businesses affected by local covid-19 restrictions.
  • Chancellor stated that rolling national lockdowns would be enormously damaging for people's jobs and livelihoods.
  • Response to a question indicated the job support scheme will take effect on 1 November, providing 67% of wages for those in closed businesses.

Topics (select to filter)

Questions & Answers

Q1 Afzal Khan Lab Manchester Rusholme
Economy Employment
Context

Areas like Manchester face economic challenges due to local lockdown measures. The question seeks clarification on government support.

Question

What plans does he have to provide additional economic support to areas affected by local covid-19 restrictions; and if he will make a statement.

Answer from Rishi Sunak

Earlier this month, I announced that businesses forced to close as a result of local restrictions will be eligible for a grant of up to £3,000 a month. Their employees will be protected through the expanded job support programme and councils will receive extra resources to help with local track and trace, enforcement and compliance.

Answered
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Q2 Andrew Gwynne Ind Gorton and Denton
Economy Employment Local Government
Context

Greater Manchester faces economic challenges due to local lockdown measures. The question seeks to criticize the government's financial support.

Question

All that Greater Manchester is asking for is proper financial support for our businesses, our self-employed and our lowest paid after 12 weeks of failed lockdown measures and as we face many more uncertain months ahead. When the Prime Minister is reported as struggling to live on his £150,000 a year salary, how does he think the lowest paid in Greater Manchester will cope on two thirds of national minimum wage? Last night, the Secretary of State for Housing, Communities and Local Government offered just £22 million for a city region of 2.8 million people. That is less than the £25 million he granted to his own town centre. Why do this Government hate Greater Manchester?

Answer from Rishi Sunak

It is disappointing to hear the hon. Gentleman's tone. It is obviously a very difficult time for many people in this country as we evolve our response to this virus, but what we need is people acting in a constructive spirit, and that is what my right hon. Friend the Communities Secretary is actively offering to do. I hope those conversations are happening as we speak.

Not addressed: Financial support adequacy for Greater Manchester

How: Dismissing Tone, Constructive Spirit

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Q3 Emma Lewell Lab South Shields
Economy
Context

Repeated local lockdowns are causing economic damage in South Shields. The question seeks details on financial support.

Question

Repeated local lockdowns with no end in sight are killing our economy in South Shields. In the past lockdown, we received £26 million of support. I have been advised that the financial package offered to us this time, should we end up in tier 3, would be just over £1 million. Can the Chancellor confirm or deny that insulting amount?

Answer from Rishi Sunak

I am glad the hon. Lady recognises the economic damage that lockdowns do, which is why, when we had this debate last week, I did pose the question as to why the Opposition were suggesting a national lockdown with no end in sight without commenting on the damage that would do to people's jobs and livelihoods.

Not addressed: Financial support adequacy for South Shields

How: Economic Damage From Lockdowns, National Versus Local

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Q4 Afzal Khan Lab Manchester Rusholme
Economy Housing Local Government
Context

Greater Manchester faces economic challenges due to local lockdown measures. The question seeks clarification on the fairness of provided financial support.

Question

People and businesses in my constituency and across Greater Manchester are suffering. They are facing an uncertain winter with insufficient support. Last night, the Government offered just £22 million to the 2.8 million people in Greater Manchester. That comes to just £8 a head to support local people and businesses during the months ahead. Other areas were given double that amount, despite having just half the population. Does the Minister seriously believe this is a fair deal for Greater Manchester, and, if so, would he like to take this opportunity to apologise to those Mancunians who will lose or have already lost their livelihoods?

Answer from Rishi Sunak

With the greatest respect, the hon. Gentleman is mistaken in his characterisation of the support provided and confusing two different things. He is absolutely right: the support is £8 a head. That is the national funding formula that is provided to all local authorities entering tier 3.

Partly answered

Not addressed: Support adequacy and fairness for Greater Manchester

How: National Funding Formula, Support Confusion

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Q5 Mel Stride Con Central Devon
Economy Employment Mental Health
Context

Lockdowns have economic and societal impacts. The question seeks a comprehensive review to understand these impacts.

Question

My right hon. Friend has done a great deal to support jobs in our country, but he will know that lockdowns destroy jobs and lead to increased mental illness and a smaller economy that for many years will be less able to look after our most vulnerable. Does he agree that the Government should come forward urgently with a comprehensive review of the impact of lockdowns, not just in terms of epidemiology and the effect on the NHS, important though that is, but in terms of the economy, businesses, jobs and the country's social wellbeing?

Answer from Rishi Sunak

As ever, my right hon. Friend makes an excellent point. He is right about the damage to not only non-covid health outcomes but people's jobs and livelihoods and the long-term damage that that will cause to all our health outcomes.

Partly answered

Not addressed: Comprehensive review timeline and scope

How: Damage To Jobs And Livelihoods, Long-Term Damage

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Q6 Anneliese Dodds Labour (Co-op) Oxford East
Parliamentary Procedure
Context

The Prime Minister had previously stated that he would not rule out a circuit breaker. The question seeks clarity on this stance.

Question

Last week, when the Prime Minister was asked whether a circuit breaker is likely, he said, “I rule out nothing”. Does the Chancellor rule it out—yes or no?

Answer from Rishi Sunak

Of course I agree with the Prime Minister.

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Q7 Anneliese Dodds Labour (Co-op) Oxford East
Economy
Context

Monetary Policy Committee stated that higher virus prevalence is associated with weaker economic performance. Research suggests a circuit breaker now could save £110 billion, based on IMF figures.

Question

The Chancellor's estimate of the cost of not undertaking a circuit breaker and continuing with this rolling programme of regional restrictions?

Answer from Rishi Sunak

The hon. Lady talks about rolling programmes. It is clear that the Labour party believes that we should have a rolling programme of national lockdowns. That would be enormously damaging for people's jobs and livelihoods, causing unnecessary pain and suffering in parts of the country where virus prevalence is low.

Not addressed: The cost estimate of not undertaking a circuit breaker was avoided

How: Changed Subject To National Lockdowns

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Q8 Alison Thewliss SNP
Employment Benefits & Welfare
Context

Pubs and restaurants are being asked to close, but the support is less than in March. Furlough scheme is closing soon.

Question

Will he take action today to extend the furlough scheme to ensure that people are protected and that those who have lost out and been excluded from support can be included this time?

Answer from Rishi Sunak

We have announced the job support scheme, which will take effect on 1 November, following the closure of the coronavirus job retention scheme. Those who are working in closed businesses can be placed on that scheme and receive 67% of their wages—an amount comparable with all our European peers—at very little, if no, expense to the employer, helping them to protect those jobs.

Partly answered

Not addressed: Extending the furlough scheme was avoided

How: Introduced Job Support Scheme Instead

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Q9 Alison Thewliss SNP
Taxation Scotland
Context

Scottish Government announced a £500 grant for the lowest paid workers, but it may be taxed by UK Government. Grant could provide an incentive to isolate.

Question

Will the Chancellor go further than he has so far and exempt that £500 grant to the poorest in our society from taxation?

Answer from Rishi Sunak

The hon. Lady talks about the Scottish Government introducing a £500 grant. It was the UK Government who introduced a £500 grant and provided Barnett funding for the Scottish Government to do the same. She is right that the grant payment is there to help those who are most vulnerable, so that they can isolate, and it provides an incentive for them to do so.

Partly answered

Not addressed: Exempting £500 grant from taxation was avoided

How: Credited Uk Government For The Grant

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