Lockdown: Economic Support

David Mundell Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Steve Barclay]

The hon. Lady started by saying that we were disrespecting parts of the United Kingdom. I was on a call yesterday with the Chancellor of the Duchy of Lancaster, the First Secretary of State and the Home Secretary and others, with the First Minister of Scotland, the First Minister of Wales and the Deputy First Minister of Northern Ireland as part of our regular dialogue. That continues across the United Kingdom and, indeed, at official level. The chief medical officers liaise extremely closely together.

Secondly, the hon. Lady’s various grievances are somewhat both surprising and disappointing when the Government have listened and introduced, for the first time, an up-front Barnett guarantee that has provided the Scottish Government with £7.2 billion of funding at an earlier point than would traditionally be the case, recognising the volatility of the situation with covid. It would be good for her to recognise that that is unprecedented and different. Again, on the call yesterday, I signalled to the First Minister that this week we would update with a further uplift—following our unprecedented action—to give more clarity on the Barnett guarantee and the consequentials flowing from that.

Thirdly—[Interruption.] The hon. Lady keeps chuntering. Many of the schemes are UK-wide ones: we have extended the loans, the coronavirus job retention scheme and the self-employed income support scheme. Those can be delivered through the broad shoulders that the United Kingdom offers. It is true that, through that capacity to act as one United Kingdom, we have been able to protect up to 1 million jobs in Scotland. It is important that we work together. That is why we were engaging with the Scottish Government yesterday. More can be achieved if the Scottish Government and the UK Government work together. That is how, to date, we have protected up to 1 million jobs, and that is the best way forward.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

As we have just seen, uncertainty in Scotland is always a basis for grievance for the SNP. My right hon. Friend can end that uncertainty simply by clarifying that, should the scientific evidence demand a further lockdown in Scotland, the furlough scheme at 80% will be available to protect jobs in Scotland.

[Steve Barclay]

My right hon. Friend is right to pick up on that grievance culture. Through our ability to act on a UK basis, we have been able to offer the unprecedented support that we have to date. Furlough has always been a UK-wide scheme and, as the Prime Minister said, the Government will always be there to provide support to all parts of the United Kingdom.

Economic Outlook and Furlough Scheme Changes

David Mundell Excerpts

Tuesday 16th June 2020 Commons Chamber

[Jesse Norman]

I am surprised that the hon. Lady should say that. As I recall, she and I have had two telephone conversations with colleagues in which we have discussed in detail the strengths and weaknesses and the potential to improve both the self-employed scheme and the job scheme. I do not recognise the view that she takes at all. It is in the nature of these schemes to seek to be as comprehensive and swift as possible, which, I think I recall, was exactly the language used by the OECD in describing the Government’s response.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

Scotland has benefited from the broad shoulders of the United Kingdom, with well over £10 billion of resources coming to Scotland to help fight this pandemic, from the furlough scheme to Barnett consequentials. Will the Minister commit to continue a UK-wide approach in tackling the pandemic, which will have to recognise that different parts of the United Kingdom will see recovery on different timescales and, of course, will see different sectors needing different levels of support?

[Jesse Norman]

My right hon. Friend is right. I defer to no one in my admiration for Scotland as a country and for its history and people. It is true that in this crisis, as in the crisis of 2007-08, there has been enormous benefit to Scotland from being embedded within a wider Union, where the collective security and financial strength of all can be drawn on. In the case of Scotland, the self-employment scheme alone has 146,000 claims and the job scheme some 628,000 claims, and that amounts to an enormous package of UK Government support for the people in Scotland, and I am very proud of that.

Finance Bill

David Mundell Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution
Monday 27th April 2020 Commons Chamber

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con) [V]]

It is a real pleasure to be able to connect to you and to the House of Commons today, Madam Deputy Speaker, and to take part in the Second Reading debate on the Finance Bill. I wish to begin by echoing comments made by the Chair of the Treasury Committee in relation, first, to those who receive a significant part of their income through dividends. I believe that there must be the possibility for the furlough scheme to accommodate a calculation of income that is based on those dividend receipts—that is used for many other income calculations. The second point is that we need to ensure that the banks are playing their part. I receive a lot of emails from the banks telling me what a great job they are doing, but I receive even more emails from constituents about the bureaucracy and difficulty that the banks are putting their way in respect of securing not just the loan guarantees, but wider loans.

I wish to raise two specific points, one of which is access to cash. I raised that in my contribution to the Budget debate on 16 March, which seems like a lifetime ago. The second relates to the Roadchef employee benefits scheme, which the hon. Member for Glasgow Central (Alison Thewliss) mentioned and which is particularly relevant in my constituency. We are seeing during this crisis that access to cash is even more important than it would be in so-called “normal” times. People need cash, often to get others to buy their weekly shop or to get them to do other tasks, or simply to have the reassurance of having cash at home in order to meet unforeseen circumstances. That is why this remains such an important issue.

As I highlighted when I spoke previously, the average cash transaction is £10 or £20. When someone is paying £3 to get £10, that creates a huge distortion in the ability to have cash. It impacts on the most vulnerable in our communities, and that is why I welcomed the fact that the Chancellor has said that he will legislate to ensure access to cash, but that has to be on a fair basis. It has to be on the basis that there are not disproportionate charges and that cash is accessible across the whole of the United Kingdom, particularly in rural areas.

I represent one of the largest rural constituencies in the UK, so I welcome the fact that LINK has made some announcements on how it might approach the issue. I also welcome the fact that NoteMachine, the second largest provider of cash machines—it does so on a charge basis—has indicated that it would go back to free charging if the significant change of a return to the previous interchange rate was put in place. I therefore urge the Chancellor and Treasury Ministers to actively consider making that change, which would make a real and significant difference to people’s ability to access cash machines and to do so on a free basis. The crisis has shown more than ever the need for people to be able to access cash.

I will move on to the issue of the Roadchef employee benefits trust. I will not give a detailed outline of the issue, because it has a long history. I know that the Financial Secretary was able to meet the chairman of the trustees and the hon. Member for Airdrie and Shotts (Neil Gray), who has done so much to pursue the issue. I have a service station in my constituency that you may have used yourself, Madam Deputy Speaker. It is now called Annandale Water, but it was previously under the branding of Roadchef. Roadchef set up the first tax-exempt, all-employee share ownership scheme of its kind, but unfortunately the former chief executive of Roadchef plundered that trust, causing all sorts of difficulties, not least that it was not registered in—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I hope that the right hon. Gentleman is drawing to a close.

--- Later in debate ---

[David Mundell]

I am coming to a close. The trust was not registered. The funds cannot currently be distributed on a tax-free basis. I hope, either by an amendment to the Finance Bill or through the Financial Secretary’s good offices with HMRC, that issue can be satisfactorily resolved.

Economic Update

David Mundell Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

Depending on the particular circumstances of the person who is self-employed, they may well qualify for ESA, which is also available from day one now, rather than day eight.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

I was very pleased this evening when Nicola Sturgeon confirmed to me promptly that every penny of the likely £1.9 billion that the Scottish Government will receive as a result of today’s announcement will go directly to businesses and individuals. It is very important that we have that common approach across the United Kingdom from Governments, but it is also important that we have a common approach from banks. The Chancellor has referenced the banks in relation to his loan and grant schemes, but many businesses have existing loan arrangements with the banks. What confirmation does he have from the banks that they will not seek to change those arrangements or to take advantage of the situation where people may be able to get Government money to repay those loans?

[Rishi Sunak]

I can tell my right hon. Friend that we have had extensive discussions with the banks just this week, and they have outlined their forbearance measures. I very much expect them to honour those commitments. He is absolutely right with his point that we will get through this as one United Kingdom.