Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of reducing Government wage subsidies from 80 per cent to 67 per cent during the covid-19 outbreak; and what assessment he has made of the effect of implementing that reduction on people on the minimum wage.
Answered by Steve Barclay
Overall levels of support have been generous by international standards, including compared to countries like Germany and France, or Ireland where eligibility criteria means many companies don’t even qualify for support.
The government has always been clear that paying 80% of normal pay through CJRS, supporting 9.6 million jobs at a level far higher than almost anywhere in the world, is simply not sustainable.
The new Job Support Scheme (JSS) will support businesses that need it most; protecting jobs in businesses facing lower demand over the winter due to Covid-19 and helping them prepare for recovery. Where the Government has had to go further on health restrictions and close business premises in some areas, the Job Support Scheme is being expanded to protect jobs and help businesses reopen more quickly once those restrictions are lifted. The scheme will cover businesses that are legally required to close their premises as a direct result of Coronavirus restrictions set by one or more of the four governments in the UK.
For low income households, Universal Credit provides further income protection. A working household on the Universal Credit taper will see their UC award increase by 63p for every £1 they lose in earnings (and for those households that also pay income tax and NICs, the impact on their overall income will be even smaller).
Companies can of course top up employees’ wages, and the JSS forms just one part of a wider package of government support for individuals, including rental support, mortgage holidays, and extra funding for the welfare safety net.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the correlation between local lockdown restrictions and (a) business survival rates and (b) unemployment in Oldham since 1 March 2020.
Answered by John Glen
No assessment can be made on the correlation between local lockdown restrictions and business survival or unemployment rates since 1 March 2020, as business count and unemployment data at a local authority level will not be published until 2021.
The government recognises that every region and community will be feeling the impact of this crisis and remains committed to helping the unemployed return to work and supporting those most vulnerable to job losses. We will continue to work closely with local areas to make sure that individuals and businesses are directed to the right support during this difficult period.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what impact assessment his Department has undertaken on the ending of the Coronavirus Job Retention Scheme at the end of October.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The CJRS has helped 1.2 million employers across the UK furlough 9.6 million jobs, protecting people’s livelihoods. Many of these employments will have already been resumed. Across the whole of the UK and all ages, the number of employments furloughed has decreased from a peak of 8.9 million on 8 May to about 4.8 million on 31 July. The CJRS must be temporary and the Government must ensure people can get back to work safely and get the UK economy up and running again.
Building on the action taken in the face of the immediate threat posed by the virus, the second phase of the Government’s response began with the targeted Plan for Jobs. The Plan places emphasis on job creation through the Kickstart scheme, a £2 billion fund to create hundreds of thousands of new, high-quality 6-month subsidised jobs for young people; as well as job protection through the Job Retention Bonus, which specifically encourages firms to keep on workers they previously furloughed. It also supports jobseekers with direct help to find work and to gain the skills they need to gain employment.
The Government is adapting its response to the changing context, evolving as restrictions have changed. On 24 September the Government introduced a Winter Economy Plan including the new Job Support Scheme, which targets support on those businesses that need it most; focusing on those that are being affected by coronavirus and can support their employees doing some work, but that need more time for demand to recover.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what economic assessment he has made of the effect of ending the Coronavirus Job Retention Scheme.
Answered by Jesse Norman - Shadow Leader of the House of Commons
After eight months of the Coronavirus Job Retention Scheme, the scheme will close at the end of October. The scheme must be temporary and the Government must ensure people can get back to work safely and get the UK economy up and running again.
The longer people are on furlough, the more likely it is their skills could fade, making it harder for them to get new opportunities. It is in no-one’s long term interests for the scheme to trap people in jobs that only exist because of the subsidy.
Building on the action taken in the face of the immediate threat posed by the virus, the Government is now proceeding with the second phase of its response with the targeted Plan for Jobs which will support the UK’s economic recovery while continuing to prioritise people’s health.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what conditions were included in financial support packages through the Birch scheme to airline operators.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Any companies seeking support must have exhausted all other options before being considered, and any support given will be on terms that protect the taxpayer, with existing lenders and shareholders expected to contribute to and share in the financial burden. Companies seeking such support would need to agree to appropriate conditions – including those relating to tax, supplier payment terms, climate change and corporate governance.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish a list of rateable values for airports and ancillary uses in England.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Rateable values (RVs) for all rateable non-domestic properties in England are published in the rating lists. The latest RVs can be found here: https://www.tax.service.gov.uk/business-rates-find.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of vehicle checks that will be required daily from (a) Great Britain to Northern Ireland and (b) Northern Ireland to Great Britain after the UK leaves the EU.
Answered by Jesse Norman - Shadow Leader of the House of Commons
No such estimate is available. The deal agreed with the EU will enable the Government to ensure that no tariffs are payable for goods moving from Northern Ireland to the rest of the United Kingdom and that there is no hard border on the island of Ireland. The deal also ensures that unfettered access for goods moving from Northern Ireland to the rest of the UK can be maintained.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to increase protection for small businesses taking out finance.
Answered by John Glen
On 1 April 2019 the Financial Conduct Authority (FCA) widened eligibility to take a complaint to the Financial Ombudsman Service (FOS) to include ‘small businesses’ who have:
an annual turnover of less than £6.5m; and
an annual balance sheet total of less than £5m; or
fewer than 50 employees.
‘Micro-enterprises’ were already eligible, and over 99% of businesses are now within the remit of the FOS. The FCA also increased the maximum FOS award limit to £350,000.
The banking industry have also committed to establishing a new Dispute Resolution Service to resolve both future complaints from businesses with a turnover between £6.5m and £10m, and unresolved historic complaints.