Covid-19: Business Interruption Insurance

Debate between Baroness Barran and Baroness Kennedy of Shaws

Tuesday 17th March 2020 Lords Chamber

[Baroness Barran]

My noble friend makes a very important point. A new coronavirus business interruption loan scheme, which is being delivered by the British Business Bank, will launch in a matter of weeks—I cannot give a more precise answer than that—to support businesses to access bank lending and overdrafts. In addition, all businesses and self-employed people who are in financial distress in relation to their outstanding tax liabilities may be eligible to receive support with their tax affairs through the HMRC’s time-to-pay service.

[Baroness Kennedy of The Shaws (Lab)]

My Lords, what might be done about theatres? Only this morning Tamara Rojo, the great ballerina and the leader of English National Ballet, pointed out that unless the Government say that theatres should close, they will have no access to insurance to cover the losses they will incur in having brought companies together and so on. Their insurers are requiring that there is a direction from government that they close in order to protect public health. Is it the Government’s intention to protect our arts, which are so important and which run on very tight margins?

[Baroness Barran]

The noble Baroness makes an important point about the contribution of the arts to this country. The department is extremely aware of that and is proud of our arts and anxious to protect them. On insurance, as I said to the noble Lord, Lord Clement- Jones, the Association of British Insurers has already said that the vast majority of businesses would not be covered in this way. If that is different for theatres, I will write to the noble Baroness. There was also a question about the timeliness of receiving funds in relation to insurance, but the key point is that we are looking at all possible options to support these valued sectors.