Commons Sense

House of Commons · Westminster Hall

Covid-19: Recovery of Central London Businesses

22 June 2021 · 2 other contributors · 4,124 words

Opened by Nickie Aiken Con Cities of London and Westminster

Responding minister: Paul Scully

EconomyTaxationBusiness & Trade

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

Read the full transcript on Parliament.uk

At a glance

Nickie Aiken raised concerns about covid-19: recovery of central london businesses in Westminster Hall. A government minister responded.

Key points

  • The hon. Member is concerned about the recovery of central London businesses, particularly in Cities of London and Westminster, due to the severe impact of the pandemic on the cultural ecosystem.
  • She argues that the current business rates system, with its cap of 2 million, exacerbates financial pressures faced by mid-sized chain businesses and large hotels.
  • The hon. Member asks the Government to urgently address several issues, including a Government-backed insurance scheme for event organisers, extension of the 5% VAT freeze on cultural tickets, and support for extending Sunday trading hours.

Key requests to Government

The hon. Member asks the Government to urgently address several areas: a Government-backed insurance scheme for event organisers facing covid-19-related cancellations; extension of the 5% VAT freeze on cultural tickets until the end of the financial year 2021-22; and support for extending Sunday trading hours from 6 pm to 8 pm in international centres. She also urges the Government to work with businesses to encourage more visitors, especially high-spending ones, and to promote London globally as a place to visit and do business.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Nickie Aiken Con Cities of London and Westminster

The hon. Member is concerned about the recovery of central London businesses, particularly in Cities of London and Westminster. She highlights that these areas rely on a cultural ecosystem which has been severely impacted by the pandemic. The business rates system, she argues, is outdated and exacerbates the financial pressures faced by mid-sized chain businesses and large hotels due to its cap of £2 million. With international visitors accounting for 50% of all spending in central London, she worries about the lack of high-volume footfall from tourists and workers returning to offices.

Other contributors (2)
  • Florence Eshalomi Lab Co-op Vauxhall and Camberwell Green

    Does the hon. Member agree that major tourist attractions in her constituency and in mine, such as the London Eye, rely on visitors and tourism from across the world? She suggests the Government needs to consider business rates relief, additional employer contributions on furlough and flexible loan repayments, all of which need to be in place over the summer. Asked the Minister to provide assurance to struggling businesses in London that rely on diverse workforces, highlighting Windrush Day and the contributions of people from various backgrounds.

  • Richard Graham Con Gloucester

    The hon. Member emphasises the impact of the lack of international visitors on tourist attractions in central London, highlighting theatres' significant multiplier effect for the local economy and advocating for a Government-backed insurance scheme to help event organisers plan for risk.

Government Response

Paul Scully

It is a pleasure to serve under the chairmanship of Sir Christopher Chope. The Minister congratulates Nickie Aiken on securing this debate, highlighting London's importance in bouncing back from adversity. He discusses the challenges faced by the cultural and hospitality sectors in London, emphasizing the need for people's confidence and joy in returning to workplaces. The Minister mentions that London generates 25% of the UK's GDP and the west end generates 4% of GVA. He addresses business rates, referencing a fundamental review due in October. He discusses the challenges faced with grant systems during the pandemic, acknowledging the need for flexibility and collaboration. The total fiscal support provided is £352 billion, rising to £407 billion when including various types of fiscal support. The Minister emphasizes the importance of working constructively with the Mayor of London, highlighting the Mayor's campaign 'Let's Do London' to encourage domestic tourism. He also mentions the need to attract international visitors and students back to London. The Minister supports cautious reopening plans and praises Transport for London for its efforts in cleaning public transport networks. He acknowledges concerns over Sunday trading and VAT reduction but emphasizes the holistic approach needed.

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