Support for Businesses Covid-19 2021-01-26
2021-01-26
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The question arises from the need to address the ongoing financial strain on businesses due to the coronavirus outbreak.
What fiscal steps his Department is taking to support businesses affected by the covid-19 outbreak. This includes various measures such as the job retention scheme, tax cuts and deferrals, government-backed loans, and cash grants.
The Government recognise the significant impact of coronavirus on businesses across every region and nation of the United Kingdom, and have put in place an unprecedented series of measures to provide support. These include the Coronavirus Job Retention Scheme, tax cuts and deferrals, government-backed loans, and cash grants.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
The question comes in the context of ongoing concerns about the sustainability of current business support measures as they approach their original three-month limit.
Business support that was originally designed for three months is now wholly inadequate for 12 or 18 months. Business debts and deferrals are mounting and now have to start being repaid, and the holidays are coming to an end, all at one big danger point in April. Cash grants are worth less and many still do not qualify for them. Does he recognise that he cannot pull the plug all in one go in April, given that many businesses will not even have reopened at that point?
No one is patting themselves on the back while hundreds of thousands are losing their jobs and many businesses are seeing extreme dislocation. We have put in place a series of measures but cannot protect or save every job and business. The hon. Lady makes a fair point, which is why we will review all our economic measures to support people through coronavirus at the upcoming Budget.
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Assessment & feedback
The exact extension of current support measures beyond April was not committed to.
Under Review
Response accuracy
Q3
Partial Answer
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Context
The question addresses the challenges faced by female entrepreneurs who are working full-time while managing childcare responsibilities.
Many female business owners have found themselves working full-time jobs at home while bearing full-time responsibility for childcare and home schooling, all at the same time. May I thank my right hon. Friend for all the steps he is taking to alleviate the difficulties experienced by mothers who just want to work and contribute to the economy with their children safely back in school?
My hon. Friend is absolutely right, and we owe mums everywhere an enormous debt of thanks for doing a very difficult job juggling childcare and work at this tricky time. I know she will join me in being happy that early years settings have been open for a while, but the only way to sustainably solve this challenge is safely to reopen our schools as quickly as we can.
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Assessment & feedback
Specific support measures beyond current initiatives were not committed to.
Working On It
Response accuracy
Q4
Partial Answer
I have long believed that there was a compelling case for reducing VAT for the hospitality sector, and the pandemic-inspired cut helped to save the season between lockdowns. May I ask that my right hon. Friend, when he is looking at his Budget, considers making the cut permanent, to power the recovery across the UK, including in my destination town of Eastbourne?
My hon. Friend is rightly a champion for her local tourism and hospitality businesses, which are vital across constituencies like hers. We reduced the rate of VAT to the end of March, but we plan to review all our measures at the upcoming Budget.
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Assessment & feedback
The permanent reduction in VAT was not committed to beyond the current measure.
Under Review
Response accuracy
Q5
Partial Answer
As you know, Mr Speaker, many of our manufacturers here in Lancashire have worked through the pandemic. Will my right hon. Friend congratulate businesses such as J & J Ormerod plc, James Killelea and Co Ltd, WEC Group and Perspex who not only have worked through the pandemic, but show that high-value manufacturing and the real economy need to be things the Chancellor fosters and supports in his forthcoming Budget?
I am very happy to join my right hon. Friend in congratulating the businesses he mentioned. We know that many manufacturers, especially those in his area, have worked very hard, particularly with regard to ventilators and PPE at a time of this country's need.
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Assessment & feedback
The question about future support for manufacturing was not directly answered.
Under Review
Response accuracy
Q6
Partial Answer
Cheadle businesses that faced fines for failing to submit self-assessment returns by the end of this month will be relieved by yesterday's announcement of an extension until the end of February. With the original deadline only a week away, what steps will the Department take to ensure that all businesses are aware of these changes?
My hon. Friend knows as an accountant herself, the fantastic job that people are doing under enormous strain at this current time. I know she warmly welcomes HMRC's announcement yesterday to waive penalties until the end of February for late filers.
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Assessment & feedback
The specific steps taken or planned to inform businesses were not detailed beyond communication through various channels.
Under Review
Response accuracy
Q7
Partial Answer
There is a looming bloodbath for many businesses at the end of March, when the moratorium on commercial landlords taking action against tenants in arrears comes to an end. Does my right hon. Friend recognise that acute danger? What action might he consider taking to avoid it?
My right hon. Friend knows that the Secretary of State for Housing, Communities and Local Government is engaged with this issue and has worked with the industry to put in place various codes of practice to encourage good and constructive dialogue between landlords and tenants throughout a difficult situation.
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Assessment & feedback
The question about specific actions post-moratorium was not directly answered.
Under Review
Response accuracy