Covid-19: Economy Update

Debate between Lord Agnew of Oulton and Lord Taylor of Goss Moor

Tuesday 27th October 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, the Job Support Scheme Open is available to all small businesses experiencing difficulties in this crisis. They are eligible for the figures that I gave earlier to the noble Lord, Lord Tunnicliffe, as are large employers of more than 250 employees that can demonstrate a negative impact on their turnover from Covid.

[Lord Taylor of Goss Moor (LD) [V]]

My Lords, the Government have been pretty supportive of retail and other business tenants, with the rates holiday, VAT help, the furlough scheme and the moratorium against enforcement by landlords. I have little doubt that these will be extended for as long as coronavirus issues continue, but have the Government seriously considered how they will be unwound for tenants, in particular the moratorium on rents? As soon as it is lifted, some landlords will seek enormous backdated rents, all owed at once, which themselves would bankrupt businesses that have been unable to trade for a significant period. Either government support or some unwinding of the moratorium is needed to avoid these bankruptcies.

[Lord Agnew of Oulton (Con)]

My Lords, a great deal of thinking is going on, but this matter might be worth some pragmatism. If landlords collectively behaved in the way suggested by the noble Lord, there would be a mass exit from commercial buildings when the point comes. Doing that would surely be shooting themselves in the foot.

Unemployment

Debate between Lord Agnew of Oulton and Lord Taylor of Goss Moor

Thursday 11th June 2020 Lords Chamber

[Lord Agnew of Oulton [V]]

As the noble Lord probably is aware, we have given significant support to areas such as entertainment in the form of grants and business rates relief. For those that missed out on rates relief, we brought in the additional £600 million facility for local authorities to support those businesses that were not in the business rates relief regime. We will continue to assess the situation and we have ensured that several of these types of businesses, such as garden centres, have reopened recently. Yesterday, we announced that zoos can reopen. As we come up with a formula for businesses to reopen safely, we will continue to do that.

[Lord Taylor of Goss Moor (LD) [V]]

My Lords, millions of people depend on work in businesses that could function well if we had the one-metre rule recommended by the World Health Organization and adopted by countries such as China, which have successfully repressed the coronavirus. We still have a two-metre rule, which makes many of those jobs impossible to do. How quickly will the Government come to a conclusion to change the distance to one metre, which medical advisers have made clear is a decision for Ministers, not simply a medical one?

[Lord Agnew of Oulton [V]]

The noble Lord makes a good point and I certainly expect the debate about the distance to carry on. I share his concern about seeing the distance reduced, because it would enable a lot more businesses to open. We will see what the outcome of that debate is over the next few days and weeks.

Covid-19: Economic Package

Debate between Lord Agnew of Oulton and Lord Taylor of Goss Moor

Wednesday 13th May 2020 Lords Chamber

[Lord Agnew of Oulton]

My Lords, we have improved the terms of universal credit since this crisis began by increasing payments by £20 a week. We have seen 1.6 million claims since the beginning of the crisis, and all new and existing claimants will benefit from the increased generosity of these payments.

[Lord Taylor of Goss Moor (LD)]

Given that the Government have clearly not finalised the scheme as they cannot tell business how much they will contribute, will the Minister ensure that his colleagues take account of two figures that might cause perverse consequences? One is that individuals who need to be shielded and therefore cannot work, even if the business has work for them, are currently eligible for the furlough scheme. Clearly it is important that that continues, but it would be unreasonable and perverse if businesses found that they were financially advantaged by putting those people on statutory sick pay or even making them redundant when they cannot work. Businesses are being asked to support people in that situation, and it is important that they are fully protected on the furlough scheme cost. Similarly, there are businesses and charities that are not allowed to open by the Government and may still not be allowed to open. If they are not allowed to take people into employment, surely it is right that they should be fully covered for the cost of the furlough scheme, for the risk is that these businesses, which are bleeding money, will be forced to make people redundant.

[Lord Agnew of Oulton]

My Lords, my right honourable friend in his Statement yesterday extended the existing terms of the furlough scheme until the end of July. I think we will have better knowledge of the disease and our ability to contain it by then, but I take on board the noble Lord’s comments and I will take them back to my colleagues in the Treasury.