The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
I congratulate my right hon. Friend the Member for Bournemouth West (Conor Burns) on securing today’s important debate and want to start by noting that the Government have introduced an unprecedented package of support for businesses, including grants for those businesses that are required to close or that are severely affected by restrictions put in place to tackle covid-19 and save lives. With the new restart grant scheme available from April the Government will have allocated a total of £25 billion solely on business grants in the £352 billion total package. To put that in context, that is about two or three times greater than the NHS budget for a normal year.
The Government continue to work closely with local authorities to make sure that grant funding can get to the businesses that need it as soon as is practicable, but, as my right hon. Friend said, there are clearly businesses that we need to continue to work with to see what can be done to support them, because we want to ensure that every business, no matter what area they are trading or working in, that has the reach of language schools and the soft power that my hon. Friend the Member for Totnes (Anthony Mangnall) talked about, can continue to flourish, and indeed attract new businesses to open within that space. I pay tribute to local authority staff, who have been working hard over the course of the pandemic to get these schemes in place and money out to businesses, under extreme pressure of illness to themselves, as well as covering the additional work that local authorities have had to take up.
However, the business grants programme forms only part of the massive support package put in place throughout the course of the pandemic. Since March 2020, in addition to £20 billion in grants, we have provided £10 billion in business rates holidays and £73 billion in loans and guarantees, supporting every sector of the economy.
I recognise the long-standing support of my right hon. Friend the Member for Bournemouth West for the English language schools sector. I forget how many days ago it was, but as he noted he first raised this issue in his maiden speech, in an Adjournment debate, unusually in this place. There are many such businesses in his constituency and he is doing exactly what a constituency MP should do: standing up for businesses in his constituency and the people who benefit from them. My right hon. Friend mentioned that the sketch writer Quentin Letts described me as a “second-string punch-bag”, and it occurs to me that people can only start to pick up such idioms by coming to language schools in this country, otherwise they might be sitting scratching their heads while reading the international press.
Throughout this pandemic we have taken difficult decisions on whether and when to require some businesses to close by law, and they were not taken lightly. We recognise that many businesses have made huge sacrifices in recent months. Where closures have been required, they have been in business units where significant numbers of people are likely to come into contact: retail, hospitality, leisure, personal care, hotels and some others. But, as my right hon. Friend noted, English language schools were not mandated to close in the regulations, as it was believed that these types of businesses, along with other education providers, could access online markets, but he has eloquently outlined their ongoing situation and the pressures they face. Only those businesses that were mandated to close in the regulations were eligible for mandatory scheme support such as the local restrictions support grant (closed) and variations thereof, which includes the scheme that covered the national lockdown period from 5 January onwards.
The restart grant scheme, which launched on 1 April this year and goes hand in hand with the Prime Minister’s road map, supports businesses in the non-essential retail, hospitality, accommodation, leisure, personal care and gym sectors, to enable them to reopen to customers and get those sectors back to as close to normal as possible. Unfortunately, English language schools again find themselves not eligible, as they do not meet the sector definitions set out for the restart grant scheme.
However, a number of business sectors—English language schools among them—have clearly been severely affected by the restrictions, even though they have not been required to close; some home-based businesses and businesses outside the business rates system find themselves in the same position. That is why we have made substantial grant support available for local authorities to develop local discretionary schemes—that is, the additional restrictions grant.
Under the scheme, more than £2 billion has been allocated to local authorities since November 2020. Local authorities have the discretion to use the funding to support businesses as they see fit. The scheme is open to all businesses from all sectors that were severely impacted by restrictions, including English language schools. Crucially, it is for local authorities, which know their local economies better than we in central Government do, to make sure that the discretionary support that they put in place is proportionate and tailored to the local circumstances.
I am personally speaking to local authorities to press them to get funding out of the door as quickly as is practicable. The Chancellor gave an extra £425 million in additional restrictions grant money to local authorities, but only if they had used up their original allocation. I call on local authorities to use that extra allocation either to give more money to the businesses covered by their local policies or, as my right hon. Friend is rightly asking for, to look into expanding their local policies to encompass businesses that continue to fall between the cracks.
I hope that the sector is also making use of the remainder of the Government business support offer, including the job support scheme, which my right hon. Friend the Chancellor has confirmed will run until June 2021, and the various loan and finance-guarantee schemes that have been in place throughout the pandemic. The position for English language schools is that although they have not been required by law to close, their trade has been affected by the restrictions. I encourage the sector to explore, with the relevant local authorities, whether English language schools are eligible for a covid-19 business grant from the additional restriction grant scheme, at the local authorities’ discretion.
As my right hon. Friend will be aware, the Chancellor announced at the Budget the continuation of several business-support measures to provide a platform as the economy reopens. I am hopeful that, taken in the round, the package of support that we have put in place for businesses—the grants, loans, furloughs and others measures—is substantial and offers support both for those businesses required to close and those that have been open but have had their trade affected.
I know that my right hon. Friend will continue to be a strong advocate for the sector and look forward to continuing this conversation. I am happy to take him up on his offer to meet to converse and see what more we can do to support businesses—not just English language schools but other businesses, too—in his constituency with not only reopening but recovery and beyond. I am grateful to him for bringing this matter to the House and being such a strong champion for the sector and for the businesses in his constituency.
Question put and agreed to.