Commons Sense

House of Commons · Ministers' Questions

Topical Questions

Tuesday 26 January 2021 · 18 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 17 Not answered 0

Key points

  • Chancellor provided details on measures worth over 280 billion to support jobs and businesses during the crisis.
  • Chancellor met with the authors of a report on a targeted income grant scheme and is considering it alongside other submissions.
  • Chancellor stated that the Treasury and Government have put in place a comprehensive set of support measures to help people through the crisis.

Topics (select to filter)

Questions & Answers

Q1 Tracy Brabin Lab
Economy Employment
Context

The question follows a series of economic measures taken by the government during the pandemic, including the furlough scheme and tax deferrals.

Question

If he will make a statement on his departmental responsibilities. Given the range of measures worth more than £280 billion to support jobs and businesses through the crisis, can the Chancellor provide further details on these initiatives?

Answer from Rishi Sunak

Throughout this crisis, our overriding economic priority has been to support people's jobs and businesses through a range of measures worth more than £280 billion, including the furlough scheme, tax cuts, tax deferrals, loans and grants. There will be a Budget on 3 March, when we will set out the next steps in our economic response to coronavirus.

Partly answered

Not addressed: The Chancellor did not provide specific details about his departmental responsibilities but mentioned an upcoming Budget statement.

How: Under Review

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Q2 Tracy Brabin Lab
Economy Benefits & Welfare
Context

A detailed and costed policy proposal for a targeted income grant scheme has been submitted to the Treasury, aimed at providing financial support to those locked out of current schemes.

Question

Last week the Chancellor received a detailed and costed policy proposal for a targeted income grant scheme, written by Rebecca Seeley Harris and supported by the gaps in support all-party parliamentary group. That scheme would be a vital first step in giving meaningful financial support to many of the millions who have been locked out of the current schemes and who are desperate, after nearly a year of the covid pandemic. Can the Chancellor tell us today whether he plans to progress with that proposal, or does he have another scheme in mind for the millions in need of support?

Answer from Rishi Sunak

I am happy to tell the hon. Lady that my right hon. Friend the Financial Secretary to the Treasury met the authors of the report back in December and is considering it alongside all the other submissions that we receive at the Treasury.

Partly answered

Not addressed: The Chancellor did not confirm progress with the proposal but indicated ongoing consideration.

How: Under Review

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Q3 Marcus Fysh Con
Economy Business & Trade
Context

The UK aims to attract more investment and encourage job creation through private sector initiatives.

Question

What will my right hon. Friend do to make the UK a more attractive destination for investment and capital formation, to encourage the jobs and opportunities of the future that people rely on the private sector to provide?

Answer from Rishi Sunak

My hon. Friend is right about needing the private sector to drive growth and create jobs. I am pleased to tell him that the Prime Minister and I chaired the first meeting of the Build Back Better Business Council, where we outlined our plans to invest in infrastructure, innovation and skills alongside businesses. We have also established a new Office for Investment, led by Lord Grimstone, which is charged with securing high-value investment opportunities, and I look forward to hearing from him ideas that we can productively take forward.

Partly answered

Not addressed: The Chancellor did not provide specific measures but mentioned existing initiatives.

How: Working On This

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Q4 Anneliese Dodds Labour (Co-op) Oxford East
NHS Economy Benefits & Welfare
Context

The Treasury has been involved in debates with the Department for Work and Pensions about financial support measures.

Question

In recent days, the Treasury has been at loggerheads with the Department for Work and Pensions, insisting on taking £20 a week from the pockets of 6 million families. It has also been at loggerheads with the Scientific Advisory Group for Emergencies, by claiming that financial hardship is not inhibiting self-isolation. Why is the Treasury putting our economic and health recovery at risk in this way?

Answer from Rishi Sunak

The hon. Lady should not believe everything she reads in the newspapers. The Treasury and this Government have put in place a comprehensive and generous set of support to help people get through this crisis, and the results show that we have protected those on the lowest incomes the most.

Partly answered

Not addressed: The Chancellor did not address the specific concerns raised about reductions in support.

How: Not Addressing Issue

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Q5 Anneliese Dodds Labour (Co-op) Oxford East
Employment Benefits & Welfare
Context

The Kickstart Scheme aims to provide employment opportunities for young people, but there are concerns about its effectiveness.

Question

I was actually following the words of the Secretary of State for Work and Pensions and of SAGE, but I appreciate the Chancellor's response. The kickstart scheme was much heralded, but yesterday we learned that it appears to be missing out around 99 of every 100 young jobseekers. What does the Chancellor say to them today?

Answer from Rishi Sunak

I am not entirely sure I know the figures that the hon. Lady is referring to. What I can say is that, since this scheme was announced at the beginning of July and opened for applications in September, it has created over 120,000 jobs for young people. That is, I think, an extraordinary achievement. I pay tribute to the team at the DWP for doing that. I am grateful to the thousands of businesses that are taking part in the scheme. They are working with us to provide hope and opportunity to a generation of young people so that they are not scarred by coronavirus, but can look forward to a brighter future.

Partly answered

Not addressed: The Chancellor did not address the figures cited by the questioner about scheme effectiveness.

How: Not Addressing Issue

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Q6 Jason McCartney Con
Economy Business & Trade Benefits & Welfare
Context

The Chancellor is expected to announce an early extension of support packages amidst ongoing restrictions.

Question

With the lockdown or some form of restrictions set to continue well into the spring, will the Chancellor please give some certainty to those businesses and individuals struggling financially by announcing an early extension to his various support packages, including help with VAT, business rates and stamp duty, the self-employment scheme and, of course, the universal credit uplift?

Answer from Rishi Sunak

My hon. Friend will I hope appreciate that the various things he just mentioned total about, I think, £20 billion or £30 billion, so he will understand it is reasonable that we consider all these things in the round at Budget, when we will set out the next stage in our economic response to coronavirus.

Partly answered

Not addressed: The Chancellor did not commit to an early extension but mentioned considering measures at the Budget.

How: Under Review

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Q7 Meg Hillier Labour (Co-op) Hackney South and Shoreditch
Taxation
Context

The Office for Budget Responsibility estimates potential revenue losses from customs income and VAT, raising concerns about government finances.

Question

The Office for Budget Responsibility estimates that HMRC will forgo around £800 million in customs income and VAT over the next year. Some is deferred, but much is forgone. Will the Chancellor tell us what he is doing to make sure that that number shrinks and that revenue comes in at a time when the Exchequer needs it really very badly?

Answer from Rishi Sunak

I will have to go and check the exact figures, if the hon. Lady will forgive me for not knowing the specific paragraph that she refers to. In general HMRC is providing easements over the next few months as we transition to a new set of trading relationships, but she can rest assured that we are always mindful of the impact on revenue and intend fully—very much so—to have a robust set of mechanisms in place. As she will know, there is a phased response for getting to that point between now and July, and hopefully we can work with her to make sure that that path is as seamless as possible.

Partly answered

Not addressed: The Chancellor did not provide specific measures but indicated awareness of the issue.

How: Under Review

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Q8 Chris Grayling Con
Taxation
Context

Concerns have been raised about capital gains tax rates and their impact on revenue, prompting a question about the Chancellor's intentions.

Question

The Chancellor has been widely praised for his work in recent months, but he has also been honest about difficult decisions ahead. I have had constituents raise concerns with me about capital gains tax. He will know that the current rates were set to optimise revenue from the tax. I know he cannot comment on individual measures, but can I seek his assurance that he will not take any steps to raise taxes without doing a proper assessment of the Laffer curve principle that higher rates do not always lead to higher revenues?

Answer from Jesse Norman

I thank my right hon. Friend for his question, which tempts me into indiscretion. He may be aware of this, but HMRC publishes annual estimates to illustrate the impact of changes in tax rates in a document sexily entitled “Direct effects of illustrative tax changes”. It is worth saying, however, that these estimates are themselves uncertain, because of different levels of behavioural response to tax changes, the potential for wider macroeconomic impacts and, of course, the interaction with other measures.

Partly answered

Not addressed: The Minister did not provide an assurance but mentioned existing assessment methods.

How: Not Addressing Issue

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Q9 Chris Matheson Lab
Business & Trade
Context

46% of pubs have not received local restrictions support grants for November, and 74% have yet to receive the £1,000 Christmas bonus.

Question

The pubs and hospitality sector has done everything asked during the pandemic. However, so far 46% of pubs have not received local restrictions support grants for November, let alone December, and 74% of pubs have yet to receive the Prime Minister's Christmas bonus of £1,000. What will Ministers be doing to speed up these payments?

Answer from Rishi Sunak

It is absolutely right that businesses get the funds as quickly as possible. Central Government have disbursed that funding to local councils across the country, so it is actually for businesses to take up with their local authority why they have not received the money. There are two sets of grants: there are monthly grants and one-off payments of up to £9,000.

Partly answered

Not addressed: The specific ask about speeding up payments was not addressed directly

How: Local Authorities Will Handle This

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Q10 Matt Vickers Con Stockton West
Economy
Context

Teesside is seen as having untapped potential and ambition, with a focus on economic success.

Question

Teesside is a place with untapped potential, skills and expertise, and boundless ambition that will play host to the biggest economic success story of the next decade. Can my right hon. Friend think of anywhere better to host Treasury North than one of the country's first free ports?

Answer from Kemi Badenoch

I thank my hon. Friend for his question. He is a doughty champion for his region and he should know that we remain focused on the commitment we made at Budget 2020 to have 750 roles across the economic campus by the end of the Parliament. The Treasury is still considering a range of location options for the new campus.

Partly answered

Not addressed: The specific ask about Teesside was not addressed directly

How: Range Of Location Options Are Being Considered

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Q11 Lilian Greenwood Lab Nottingham South
Economy Transport
Context

The Government claim their central economic mission is to level up, but the questioner wants assurance on HS2's eastern leg.

Question

The Government claim that their central economic mission is to level up. Can the Chancellor assure me that his Government will deliver HS2 in full, including the whole of the eastern leg?

Answer from Steve Barclay

The hon. Lady is right to draw attention to the commitment the Government have made to infrastructure, including in the forthcoming integration infrastructure plan, but the levelling up is not just about rail; it is also about the £4 billion levelling up fund and, most importantly, about the review of the Green Book.

Partly answered

Not addressed: The specific ask about HS2 was not addressed directly

How: Levelling Up Agenda Includes More Than Rail

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Q12 Sarah Atherton
Taxation Business & Trade
Context

Wrexham's brewing industry supports nearly 1,700 jobs and generates £11 million in taxes. The UK Government's furlough scheme has been a lifeline but the future remains bleak.

Question

Will my right hon. Friend the Chancellor in his forthcoming Budget consider deferring business rates and VAT payments even further?

Answer from Kemi Badenoch

The Government understand that this is a very challenging time for the UK hospitality sector, and we are constantly reviewing the package of covid-19 support. In order to ensure that decisions are made to meet these challenges, we will outline plans for 2021-22 business rates relief early this year.

Partly answered

Not addressed: The specific ask about VAT deferment was not addressed directly

How: Plans For 2021-22 Business Rates Relief

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Q13 Patricia Gibson SNP
Taxation Employment
Context

Paid leave following a bereavement is entirely at the discretion of employers, costing the UK economy £22 billion annually.

Question

In his upcoming Budget what consideration will the Chancellor give to statutory paid bereavement leave for all workers who lose a close family member?

Answer from Rishi Sunak

I am happy to look at the specific question the hon. Lady raises, but she will know that in the last Budget we introduced a manifesto commitment to bring in neonatal leave.

Partly answered

Not addressed: The specific ask about bereavement leave was not addressed directly

How: Look At The Question

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Q14 Mark Pawsey Con
Business & Trade
Context

Suppliers to the hospitality sector have seen dramatic falls in sales.

Question

Is there any additional support he can provide at this particularly challenging time?

Answer from Kemi Badenoch

My hon. Friend raises a point mentioned by several Members about the difficulties businesses in the hospitality sector and their supply chain have faced during the pandemic. £1.6 billion is being made available for local authorities to support businesses that are ineligible for closed business grants but that may still be impacted by restrictions.

Partly answered

Not addressed: The specific ask about additional support was not addressed directly

How: £1.6 Billion Being Made Available

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Q15 Virendra Sharma Lab
Business & Trade
Context

Some small businesses in the constituency cannot access support they need.

Question

Will the Minister fix that flaw in the system and commit to help small businesses today?

Answer from Rishi Sunak

The hon. Gentleman can write to me with the specific issue he has with the guidance, but in general the grants have been functioning well and local authorities are getting them out to businesses.

Partly answered

Not addressed: The specific ask about fixing a flaw was not addressed directly

How: Write For Specific Issue

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Q16 Scott Benton
Economy Taxation
Context

The MP noted the importance of temporary VAT reductions provided during the pandemic to support businesses in Blackpool. He highlighted the impact on job preservation.

Question

I am concerned about the reopening of the hospitality and tourism industries later this year, will he commit to extending the reduction in VAT for these sectors to help maintain thousands of jobs in my constituency?

Answer from Jesse Norman (Financial Secretary to the Treasury)

The temporary reduced rate of VAT was introduced to support over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors; it has been extended until March this year but no further plans exist due to significant costs involved.

Partly answered

Not addressed: Commitment to extending VAT reduction beyond current timeframe

How: But The Relief Comes At A Significant Cost, We Have No Current Plans To Extend It Further

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Q17 Ian Levy
Economy Business & Trade
Context

The MP inquired about the possibility of reintroducing or modifying the Eat Out to Help Out scheme post-lockdown, noting its critical role during previous easing phases.

Question

Will my hon. Friend assure me that his Department will carefully consider reinstating the Eat Out to Help Out scheme or something similar once we come out of lockdown?

Answer from John Glen (Financial Secretary to the Treasury)

The Chancellor will be coming forward with an update on measures for post-lockdown recovery at the upcoming Budget, where they will carefully examine what is needed.

Not addressed: Specific commitment or timeline regarding reinstatement of scheme

How: We Will Continue To Examine Very Carefully, The Chancellor Has Indicated That He Will Be Coming Forward At The Budget

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Q18 James Sunderland
Business & Trade
Context

The MP asked about incentives to attract new businesses to the UK post-Brexit and retain existing ones amid global trade challenges.

Question

Given the imperative of forging new trade deals worldwide, what incentives are being considered by the Treasury to both attract new companies to the UK and retain those that are already here?

Answer from Steve Barclay (Chancellor of the Exchequer)

The Office for Investment, led by Lord Grimstone, is focused on attracting new companies and retaining existing ones; they work with the Build Back Better Business Council.

Partly answered

Not addressed: Specific incentives or timeline

How: Focused On Exactly That Issue, Working In Tandem

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