Commons Sense

House of Commons · Ministers' Questions

Support for Businesses: Covid-19

Tuesday 20 October 2020 · 5 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 4 Not answered 0

Key points

  • Government has provided a support package worth over 190 billion to assist businesses affected by the covid-19 outbreak.
  • The Chancellor has cut VAT to 5% and introduced a 12-month business rates holiday for businesses in tier 2 areas.
  • The Secretary of State for Housing, Communities and Local Government negotiated additional business support for the county of Lancashire under tier 3 restrictions.

Topics (select to filter)

Questions & Answers

Q1 Maria Miller Con
Economy
Context

The MP is asking about fiscal steps to assist businesses affected by the pandemic. She references the significant disruption caused by the outbreak.

Question

What fiscal steps his Department is taking to support businesses affected by the covid-19 outbreak?

Answer from Steve Barclay

The Government recognise that the pandemic has caused extreme disruption to the economy. That is why we have delivered one of the most comprehensive and generous support packages anywhere in the world, worth over £190 billion.

Answered
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Q2 Kieran Mullan Con Bexhill and Battle
Economy Business & Trade
Context

The MP references the significant impact of tier 3 restrictions on hospitality businesses, highlighting specific issues with the 10 pm curfew.

Question

I recognise the enormous amount of support that has been given to businesses in Crewe and Nantwich. I have spoken to many that would not have survived without it, and I know the pressure on public finances. But hospitality businesses such as the one I visited, Giovanni's in Crewe, will really struggle with the 10 pm curfew and the ban on household mixing. Can the Government look again at what we can do for businesses that might technically be allowed to open but will struggle under those circumstances?

Answer from Steve Barclay

My hon. Friend is right that there has been disruption to businesses in tier 2 areas. That is why my right hon. Friend the Chancellor has cut VAT from 20% to 5% and extended that to 31 March and also introduced a 12-month business rates holiday.

Partly answered

Not addressed: The specific ask about reviewing curfew restrictions was not directly addressed, instead focusing on VAT cuts and business rate holidays.

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Q3 Antony Higginbotham
Economy Business & Trade
Context

The MP highlights the closure of many businesses in Burnley and Padiham due to entering tier 3 restrictions, emphasising the need for support.

Question

Over the last few days, businesses across Burnley and Padiham, from bookkeepers to bars and pubs, have had to close as the county of Lancashire has entered tier 3 restrictions. While it is welcome that those businesses are getting Government support through the extension of furlough and business grants, there are many more in the supply chain that will be equally impacted because their end suppliers are not there. Could my right hon. Friend set out what measures are available to support them over the next couple of months?

Answer from Steve Barclay

As a Lancastrian myself, I am acutely aware of the impact on the county of Lancashire, which is why my right hon. Friend the Secretary of State for Housing, Communities and Local Government negotiated the additional business support. That builds on the measures set out by the Chancellor to support businesses not just through the job support scheme, but through the furlough bonus.

Partly answered

Not addressed: The specific ask about supporting supply chain businesses was not directly addressed, focusing instead on general support measures for tier 3 areas.

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Q4 Caroline Nokes Con Romsey and Southampton North
Economy Business & Trade
Context

The MP points out that some sectors are still unable to trade despite being in tier 1, leading to significant financial loss.

Question

It is not just businesses in tiers 2 and 3 that have been impacted; in tier 1, some sectors are still unable to trade, suffering from a total loss of business. Does my right hon. Friend agree with the head of the IMF that 'now is not yet the time to balance the books', and will he consider extending support to businesses that still cannot work in these times?

Answer from Steve Barclay

My right hon. Friend is right about the pressure on businesses in tier 1 as well. That is why, in the package the Chancellor has set out, has been the extension of loan facilities to help those businesses with their cash flow. In the south-east region, which my right hon. Friend represents, the total is some £0.5 billion of support.

Partly answered

Not addressed: The specific ask about IMF's stance and extending support was not directly addressed; instead, focus on loan facilities for tier 1 businesses.

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Q5 Maria Miller Con
Taxation Business & Trade
Context

The MP highlights the importance of preserving small brewery relief to safeguard future viability, particularly in Hampshire and across the UK.

Question

Many thousands of small businesses have already benefited from the measures that my right hon. Friend and his colleagues have put in place. As we move forward, may I urge him to keep a small business focus, particularly for small brewers? Duty levels are a crucial part of their business viability, and may I urge him to keep small breweries' relief in place, as it is helping to safeguard the future of many small breweries not just in Hampshire but throughout the United Kingdom?

Answer from Steve Barclay

My right hon. Friend makes an extremely valid point about the impact on that sector. That is why the Treasury is reviewing small breweries' relief and, indeed, the Exchequer Secretary has taken forward reforms, at the industry's request, to fix issues in the current relief design.

Partly answered

Not addressed: The specific ask about maintaining relief was not directly committed; instead, focus on reviewing relief and fixing issues.

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