Covid-19: Economy Update

Alison Thewliss Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

My right hon. Friend is absolutely right. The Opposition referenced the SAGE minutes but seemed to forget about that part of them, which rightly struck a balance between protecting jobs and protecting lives. He can rest assured that the Government will always do that. I may spare the chief economist the pleasure of attending the press conferences, but my right hon. Friend is right to say that that analysis is taking place. I have presented some of it at the press conferences, and I am happy to talk more about it at the Dispatch Box.

Fundamentally, my right hon. Friend knows, as I do, that our economy faces enormous strain. Almost three quarters of a million people have already lost their jobs, and, sadly, more will. That is why a regional, targeted approach is the right one. It allows us both to protect lives and to protect livelihoods.

[Alison Thewliss (Glasgow Central) (SNP) [V]]

This is the third statement from the Chancellor in the space of a month, but that is not a sign of good management; it is a sign of panic and chaos from this Government. None of this should be coming as a surprise to them. It is telling that the Government have put out more under embargo today than they gave out to the Opposition spokespeople—a sign of real disrespect to the other parties in this House.

We in the Opposition have called for more certainty and a plan, because the evidence is that we are not coming out of this coronavirus crisis any time soon. The Chancellor has not listened or responded, so I ask again for three things. I ask him to listen and to act; to extend furlough and the self-employment income support scheme at the rates from earlier in the year to protect jobs and livelihoods; and to fill the gaps and help those who are excluded completely from his support schemes. He knows that that is a problem, and he is choosing to ignore it.

I ask the Chancellor to keep the £20 uplift to universal credit and extend it to legacy benefits, including for those who have disabilities. Two thirds of the minimum wage is not enough to live on, and not everybody is entitled to universal credit. Huge gaps remain: carers, asylum seekers, those with disabilities and those with no recourse to public funds have all been left behind by this Government, with a cold, long winter ahead.

Significant sectors such as culture and the arts, hospitality, food and drink wholesalers, tourism, transport and aviation, and many more are not going back to normal any time soon, and they deserve Government support. Will the Chancellor align his support scheme with the Scottish Government’s public health proposals and those of the other devolved institutions?

UK Government support for Scotland does not go far enough to mitigate the local lockdowns that we have faced. The UK Government must now provide clarity on the Barnett consequentials to help us to plan and protect businesses and our people. The Scottish Government need this now—today—not in three months’ time, not eventually and not at some point in the future. We need it now, and the Chancellor should give clarity on it today so that the Scottish Government can act.

The Chancellor’s scheme has been full of holes. Time and time again, he comes here in a knee-jerk reaction, full of panic, rather than planning ahead for a situation that we told him would arise. This is nowhere near “whatever it takes”. I ask him to go further today, and to work with all the Opposition parties and the devolved institutions to get this right.

[Rishi Sunak]

When we outlined the original job support scheme, it was actually very warmly welcomed not only by various business groups, including the CBI, the Federation of Small Businesses and the chambers of commerce, but by the trade unions, because everyone at that moment recognised that it was a significant and generous intervention to protect the jobs and livelihoods of the British people. But the situation has changed. The health restrictions are having an impact, particularly in the hospitality sector, which the hon. Member for Oxford East (Anneliese Dodds) mentioned. That is why we have taken the steps that we have today. We are providing the certainty that she asked for, as this scheme will last for at least six months through to next spring. There is certainty over that. The grants we have outlined today will work on a monthly basis for as long as businesses are either in tier 2 restrictions or are closed under tier 3. Businesses can plan on that basis.

With regard to the Barnett consequentials, the Government will always ensure that people will benefit from this support wherever they are living in the United Kingdom. That is why we have provided an up-front guarantee to devolved nations worth £14 billion, which will help them also to plan at what is, I understand, a difficult time for everyone.