Commons Sense

House of Commons · Westminster Hall

Covid-19: Small Businesses in Streatham

18 January 2022 · 3 other contributors · 4,702 words

Opened by Bell Ribeiro-Addy Lab Clapham and Brixton Hill

Responding minister: Lee Rowley

EconomyBrexitBusiness & Trade

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

Read the full transcript on Parliament.uk

At a glance

Bell Ribeiro-Addy raised concerns about covid-19: small businesses in streatham in Westminster Hall. A government minister responded.

Key points

  • Small businesses in Streatham, including corner shops and cafes, reported a 50% drop in turnover due to the pandemic.
  • The UK lost nearly 50 shops per day during the first half of 2021, with 263 businesses in Streatham at risk of closure.
  • Businesses in Streatham called for reduced VAT rates, a business rates holiday, and reforms to business taxation.

Key requests to Government

The Government needs to provide a reduction in VAT or retain the 5% VAT rate for hospitality, offer a business rates holiday until December 2022, reform business taxation, implement flexible furlough schemes throughout the pandemic, ensure decent sick pay at the real living wage, and guarantee that no one on furlough is paid less than the minimum wage.

How the debate unfolded

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

Opened the debate

Bell Ribeiro-Addy Lab Clapham and Brixton Hill

Small businesses in Streatham, including corner shops, cafes, independent retailers, and the self-employed, have seen their turnover plummet by over half due to the pandemic. The UK lost almost 50 shops a day during the first six months of 2021, with projections suggesting that 263 businesses in Streatham alone are at risk of closure. Many businesses struggled with inadequate financial support, high business rates, and supply chain issues exacerbated by Brexit. Businesses also faced delayed grants and insufficient support from the Government during the omicron surge.

Other contributors (3)
  • Florence Eshalomi Lab Co-op Vauxhall and Camberwell Green

    Agrees that many businesses in neighbouring constituencies face similar issues and highlights the unfairness of wiping away £4.3 billion of loans given to fraudsters while legitimate businesses struggle. Noted that inner London boroughs like Lambeth, including her constituency Vauxhall, have businesses with high rateable values ineligible for support. Mentioned self-employed individuals forming part of ExcludedUK who did not receive help.

  • Jim Shannon DUP Strangford

    Commends the hon. Lady for securing the debate and suggests a financial assistance scheme for businesses with fewer than five staff members if they have to close due to staff isolation. Asked the Minister to consider a scheme to help small businesses with five staff members who have to close when one member tests positive.

  • Paul Scully Con Dulwich and West Norwood

    The hon. Member for Brixton (Bell Ribeiro-Addy) made a good point about the need to rethink certain proposals that are leading to high street business closures.

Government Response

Lee Rowley

It is a pleasure to serve under your chairmanship, Ms McVey. I am grateful for the opportunity to talk about this important issue. I congratulate the hon. Member for Streatham on securing the debate and thank her neighbour, the hon. Member for Vauxhall, for her intervention. The hon. Member for Streatham is right to raise issues faced in Streatham and Lambeth due to the coronavirus pandemic; it has been difficult with businesses closing and people losing jobs. I regret the challenges but acknowledge that quick changes were necessary. We cannot wish away these problems. The Government have provided substantial support, including £400 billion over two years, which is unprecedented in our political lifetime. The minister details specific grants given to Streatham, such as 2,000 local restrictions support grants, nearly £15 million in restart grants, and £10 million of additional restrictions grants. Although there have been difficulties securing the right level of rules for all businesses, a huge amount of work was done. The minister acknowledges that while challenges remain, London businesses demonstrate resilience. Surveys and economic data show small businesses moving forward with confidence despite difficult times. The Government will review what is possible on a regular basis to support communities as we move into a new phase of living with the virus.

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