Oral Answers to Questions

Debate between Lord Sharma and Steve McCabe

Tuesday 16th June 2020 Commons Chamber

[Alok Sharma]

My hon. Friend, as ever, raises an important issue. It is why both the CBILS and the bounce-back loans have a 12-month period during which interest is paid on behalf of the business. I would expect lenders to apply similar forbearance where needed in the case of existing commercial loans.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

My thoughts are also with Jo’s family. Let me acknowledge the basic decency of the furlough scheme. However, with vacancies plunging and the spectre of unemployment rising—youth unemployment in Birmingham is now at 18%—is it time for a jobs and training package, so that we avoid a return to 1980s unemployment levels for young people, when many from black and minority ethnic backgrounds simply felt written off?

[Alok Sharma]

The hon. Gentleman raises an important point. As we look to see how we can restart the economy and the whole process of recovery, we will, of course, look at skills as well.

Budget Resolutions

Debate between Lord Sharma and Steve McCabe

Thursday 12th March 2020 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

I thank the right hon. Member for Hayes and Harlington (John McDonnell) for his opening remarks. I think we can all agree that we need to demonstrate a unity of purpose across the whole House, particularly at this time. As I go through my remarks, I will address some of the points he raised, but I will just say this in candour and with the hand of friendship. When I entered the House in 2010, he had already been here for a number of years. In 2010, the economy was absolutely on its knees. [Interruption.] We had the highest, biggest deficit in peacetime at over 10% of GDP. When George Osborne delivered an emergency Budget, there were siren voices on the Labour Benches—I do not know whether the right hon. Gentleman was one of them—who said that as a result of those policies we would lose 1 million jobs and the economy would be decimated. That is not what has happened. Ten years on, we have record levels of employment and we are able to make the investments the Chancellor set out yesterday precisely because we took the right decisions in terms of fixing the public finances.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Is the Secretary of State not prepared to concede that within a year of that emergency Budget George Osborne actually had to reverse many of the capital cuts he had made, because of the damage he was doing to the economy?

[Alok Sharma]

I do not have to look back. I can look at the present, which is record levels of employment. As I go through my speech, I will highlight some of the Government’s other achievements.

Let me talk a little bit about the Budget. The Budget the Chancellor set out yesterday delivers security today and lays the foundation for prosperity tomorrow. The right hon. Gentleman said that all commentators were somehow against the Budget. That is not the case, as he knows full well. The Federation of Small Businesses called it a “pro-small business Budget”. The CBI said:

“It’s a bold Budget at scale…which will help people and business through tough times.”

The British Chambers of Commerce said:

“There’s much to welcome in this Budget for business communities across the UK.”

This is, of course, a Budget delivered in challenging times. I am grateful to the right hon. Gentleman for acknowledging that point and for supporting many of the measures the Chancellor put forward yesterday. I know that many people are concerned about the impact on investment, cashflow and the future of their businesses as a result of covid-19. The Government, as the House knows, announced a £12 billion package for public services, individuals and businesses whose finances are being affected. Support for businesses includes a £1 billion coronavirus business interruption loan scheme, delivered by the British Business Bank, which is already supporting over £7.2 billion of finance to over 93,000 SMEs.