Covid-19 Fiscal Support 2020-09-15

2020-09-15

TAGS
Response quality

Questions & Answers

Q1 Direct Answer
Context
The question is prompted by the need to address economic impacts of the pandemic, including business closures and job losses.
What fiscal support he is providing to mitigate the economic effects of the covid-19 outbreak?
We have provided unprecedented support worth more than £190 billion to protect public health, businesses and jobs, and the Government remain committed to supporting the economy throughout this crisis. In July, we published our plan for jobs, which announced further support for the economy, with initiatives such as eat out to help out, the £2 billion kickstart scheme and the £9 billion job retention bonus, all of which aim to support, create and protect jobs.
Assessment & feedback
Response accuracy
Q2 Partial Answer
Context
Emergency food parcel distribution has increased by 107%, and the Trussell Trust anticipates distributing 300,000 more parcels than expected due to the end of furlough and a hard Brexit.
Given that there is a hard Tory Brexit on the horizon and the end to the furlough scheme will certainly push more people into poverty, will the Chancellor do the right thing, adhere to his moral duty and make the £20-a-week increase to universal credit permanent?
Throughout this crisis we have endeavoured to make sure that the most vulnerable in our society get the help that they deserve, which is why results published in July showed that our interventions have meant that those on the lowest incomes have received the most support, through the temporary increase to universal credit, the hardship fund delivered through local councils and, indeed, increases to the local housing allowance to help people with their rental payments.
Assessment & feedback
Permanent increase in Universal Credit
Committed To Supporting Vulnerable
Response accuracy
Q3 Partial Answer
Context
The events industry was among the first affected by lockdowns, with many freelancers unable to benefit from existing support schemes.
Does the Chancellor have anything new to offer to people such as her?
Many self-employed people have received the second of the self-employment income support grants—almost 3 million people have now received support through that scheme—but the hon. and learned Lady is right that the best way to provide support for people in that industry is slowly and safely to reopen those bits of our economy. My colleague the Secretary of State for Digital, Culture, Media and Sport Secretary of State is engaged with that industry to start piloting the return of business conferences and events. The situation remains under review.
Assessment & feedback
Specific new offers for freelancers
Reopening Economy Piloting Events
Response accuracy
Q4 Partial Answer
Mel Stride Con
Central Devon
Context
Concerns about job viability post-COVID, with thousands or even hundreds of thousands of positions at risk without additional support.
Does he agree that many thousands, perhaps even hundreds of thousands, of jobs are going to be viable after covid is dealt with but will not make it unless they are provided with further targeted support after the end of October?
As ever, I am grateful for the advice from my right hon. Friend. He is right that businesses do need support, which is why many of the interventions that we have put in place—for example, the business rates holidays and, indeed, our support for the economy and jobs through initiatives such as our stamp duty cut to catalyse the housing market—last through to next year. I hope he will be reassured that throughout this crisis I have not hesitated to act in creative and effective ways to support jobs and employment, and I will continue to do so.
Assessment & feedback
Further targeted job support
Creative Effective
Response accuracy
Q5 Partial Answer
Context
Sectors like hospitality, aviation, tourism, and arts are heavily impacted due to ongoing public health restrictions.
Will he examine the calls by the Treasury Committee to consider a targeted extension of support for those sectors?
The hon. Lady mentions hospitality and tourism, which is an industry disproportionately represented in Scotland. That is why the Government took steps in the summer to support the industry, with a temporary VAT reduction from 20% to 5% and, indeed, the eat out to help out initiative, both of which were targeted at helping to protect the 2 million jobs and 200,000 businesses engaged in the industry.
Assessment & feedback
Examining support for affected sectors
Proportionately Supported
Response accuracy
Q6 Partial Answer
Context
Concerns about the adequacy of current support measures, with many industries facing significant winter challenges.
Those excluded from support schemes, the 700,000 made redundant since March and those losing their jobs because of the premature ending of the furlough scheme want to know whether the Chancellor will be true to that commitment or his words are worth nothing.
The hon. Lady claims that it was woefully inadequate; the VAT reduction was the single biggest ask from the UK hospitality industry. Not only was that delivered, but it was delivered with an extra initiative, eat out to help out, which proved to provide an enormous fillip to the reopening of that part of the economy. It is also worth bearing in mind that all the businesses engaged in that industry are not paying any business rates at all until March next year.
Assessment & feedback
Additional support measures
Delivered Initiatives Fillip To Economy
Response accuracy