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[Sir Edward Leigh in the Chair]
10 November 2020
Lead MP
Elliot Colburn
Responding Minister
John Glen
Tags
EconomyTaxationBenefits & Welfare
Word Count: 14754
Other Contributors: 11
At a Glance
Elliot Colburn raised concerns about [sir edward leigh in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should review criteria for grants and extend financial support to businesses that do not pay business rates or are ineligible under current schemes. There is also a need for greater clarity on exit strategies from lockdowns and a road map for reopening.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
SMEs account for nearly all businesses in Carshalton and Wallington, employing over 16 million people nationwide with a turnover of £2.3 trillion. The coronavirus has had a devastating impact on these businesses, causing job losses and financial strain. Concerns include eligibility issues for the furlough scheme, cut-off dates preventing new hires from qualifying, business rate relief not being extended to certain sectors like wholesalers, and inadequate grant funding levels compared to earlier in the year.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Coach companies are facing a crisis due to the pandemic, with a 90% drop in income. They have seen millions of visits fall to virtually nothing. There has been no sector-specific support for coach operators like there is for bus, rail, and light rail operators. Many coaches sit idle with fixed costs that will be difficult to manage until furlough ends. Coach owners report difficulties accessing CBIL loans from banks due to perceived high risk. The industry needs help including school transport subsidies and extended finance payment holidays. Asked the Minister if they would give way.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Ms Eshalomi highlighted the devastating impact of the pandemic on small and medium-sized businesses in Vauxhall. She cited specific examples such as a grocery store owner facing unaffordable rents, a businesswoman worried about keeping her business running if she self-isolates due to a family member's illness, and another highlighting the dire consequences for the hospitality sector with EU staff facing uncertain futures. The constituency has faced challenges like high rateable values disqualifying many from support despite significant drops in footfall.
Holly Lynch
Lab
Halifax
Ms Lynch paid tribute to Elliot Colburn and discussed the challenges faced by SMEs in her constituency, particularly those under tier 2 restrictions for a long time. She highlighted that soft play centres faced significant losses due to reopening delays and additional capacity constraints. Additionally, she mentioned the financial strain on Halifax borough market traders who struggled with low footfall despite rent breaks from the council.
Huw Merriman
Con
Bexhill and Battle
He expressed concern for small and medium-sized enterprises in his constituency, noting the high proportion of workers on the living wage. He highlighted that many businesses struggled during the first lockdown and would face difficulties again due to November restrictions. Merriman suggested a national campaign encouraging people to buy local and use platforms like Bookshop.org. He also challenged the Government to meet its SME procurement target earlier than planned, advocated for small builders in house construction, proposed suspending package travel regulations to protect travel agents, and called for reducing quarantine days to boost aviation.
Imran Ahmad Khan
Con
Wakefield
The hon. Member highlighted the Conservative party's pledge to support SMEs and praised the government for continuing this commitment during the pandemic. He mentioned that between March and August, 5,640 businesses in Wakefield received funds from various schemes.
Jim Shannon
DUP
Strangford
Jim Shannon expressed concern about the impact of lockdown on small wedding venues and their associated businesses, highlighting that a single venue lost £753,900 due to cancellations. He emphasized the need for assurance in taking bookings and called for measures to safely allow weddings and gatherings after funerals.
Kevin Hollinrake
Con
Thirsk and Malton
Kevin Hollinrake highlighted the unprecedented level of support businesses have received during the current recession compared to previous ones, praising measures such as the job retention scheme, business rate grants, VAT discount, and free school meals. He emphasised the importance of allowing businesses to trade rather than closing down the economy and called for a solution to help non-bank lenders' customers access bounce back loans. Kevin Hollinrake questioned the fairness of writing off debt or providing grants when some businesses have not taken loans while others will pay them back, highlighting concerns for taxpayers. Asked the hon. Gentleman if he would give way.
Owen Thompson
SNP
North East Fife
Expressed concern over the impact of extended lockdown measures on small and medium enterprises, highlighting a decline of around 85% in the hospitality sector. Called for targeted support for businesses like those involved in live events and suggested specific measures such as government-backed insurance schemes to help organisers recover costs during lockouts.
Pat McFadden
Lab
Wolverhampton South East
Thanked the chair and all contributors for a thoughtful debate. Highlighted concerns about the impact of government interventions on local markets, family-owned coach companies, high rateable value properties in central London, leaseholders, self-employed individuals, and the wedding industry. Noted that while interventions were necessary to prevent economic carnage during the pandemic, they have become costly and confusing for businesses to follow. Emphasised the importance of good virus control as a foundation for sound economics.
Rachael Maskell
Lab Co-op
York Central
She echoed concerns about the self-employed income support scheme and asked for more HMRC staff to address exclusions. She raised issues with additional restriction grants, high rateable values impacting small businesses, and leaseholders collecting money from Government grants while not reinvesting in local economies. Maskell also highlighted economic struggles in York and called for speeding up the BioYorkshire project to create jobs sooner.
Taiwo Owatemi
Lab
Coventry North West
The MP expressed concern about the impact of the coronavirus pandemic on small businesses and high streets, highlighting that hundreds of companies have closed down and thousands of redundancies have been announced. She criticised the Government for waiting until the last possible minute to act, leading to unnecessary economic pain and uncertainty. The MP called for a long-term recovery plan for small businesses, stressing the need for clarity in guidelines to help them plan ahead.
Government Response
John Glen
Government Response
The Minister emphasised that SMEs are at the forefront of government support during the pandemic, noting a £200 billion package of measures. He detailed various schemes such as the job retention scheme (£41.4 billion paid out), self-employment income support (£13.7 billion claimed), and bounce back loans (over £50 billion worth applied for). The Minister also highlighted plans to extend these supports, including additional grants for businesses forced to close due to restrictions. He acknowledged practical challenges in verifying dividend income and access issues with non-bank lenders but stressed ongoing efforts to address concerns.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.