Covid-19: Small Businesses

Lord Haskel Excerpts

Thursday 29th October 2020 Lords Chamber

[Lord Callanan (Con)]

I totally agree with the noble Lord’s sentiments. As he is probably aware, we have launched a fundamental review of business rates, which will build on the changes that we are making to the system, worth more than £23 billion to businesses over the next five years.

[Lord Haskel (Lab) [V]]

My Lords, I welcome the job support schemes mentioned by the Minister but they are short-term solutions. They load many companies with debt, which limits their ability to invest in the skills, digitalisation, resilience and restructuring essential for our longer-term recovery. Will the Government set up a system that allows debt for equity, perhaps with progressive undertakings regarding corporate governance? Several schemes to do that have been put forward. Will the Government run with one?

[Lord Callanan (Con)]

The noble Lord is right to say that these schemes are essentially short-term but we are doing an awful lot to kick-start the economy. The Prime Minister has referred to the need to build back better and we are investing substantial sums. However, we of course keep these matters under constant review.