Commons Sense

House of Commons · Ministers' Questions

Economic Support: Covid-19

Wednesday 21 July 2021 · 2 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

  • Caroline Ansell inquired about the assessment of economic support trends for businesses in Northern Ireland during the covid-19 outbreak.
  • The Minister responded that levels of support in Northern Ireland mirror those in other parts of the UK, with interventions like the job retention and enterprise schemes operating nationwide.
  • Caroline Ansell thanked the Minister for his support to the tourism sector and mentioned the benefits of visiting the Giant's Causeway.

Topics (select to filter)

Questions & Answers

Q1 Caroline Ansell Con
Economy Northern Ireland
Context

The MP asked about the level of economic support provided to businesses in Northern Ireland during the pandemic.

Question

What assessment has been made of trends in the level of economic support for businesses in Northern Ireland during the covid-19 outbreak?

Answer from Robin Walker

Levels of support in Northern Ireland are similar to elsewhere in the UK, reflecting the common challenge that public health restrictions have posed to businesses. Government interventions such as the job retention scheme and the enterprise scheme operate UK-wide, protecting around one in four jobs. Support is devolved in some areas. The Executive received an additional £5 billion of Barnett funding for covid, funding a range of interventions including business rates holidays and small business grants—all providing crucial support to businesses.

Answered
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Q2 Caroline Ansell Con
Taxation Northern Ireland
Context

The MP asked about the potential benefits of maintaining a low VAT rate for tourism and hospitality sectors in Northern Ireland.

Question

I thank my hon. Friend for his answer and for his support for the tourism sector. I am pleased to say that I have been to the Giant's Causeway—and the most wonderful place it was. Of course, there is another way to support tourism in Northern Ireland. Treasury and Deloitte estimates show that over a 10-year period, VAT at 5% would deliver £4.6 billion in revenue to the Treasury. In light of this, does my hon. Friend agree that maintaining the current, very competitive 5% VAT rate for hospitality beyond the pandemic could create new jobs and add tremendous value?

Answer from Robin Walker

My hon. Friend makes a point that I have certainly heard from a number of businesses in Northern Ireland. The Government have taken unprecedented measures to support the UK economy through the pandemic, including a temporary VAT reduction to 5% for the tourism and hospitality sectors, extended until 30 September. An interim rate of 12.5% will apply until 31 March 2022 to help businesses recover. Raising £130 billion in 2019-20, VAT is a vital source of revenue for public services like health and education. A permanently reduced or zero rate would further increase costs to UK taxpayers.

Partly answered

Not addressed: The specific ask about maintaining the current VAT rate was not directly answered, with emphasis on cost implications instead.

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