The Economy

Alison Thewliss Excerpts

Thursday 24th September 2020 Commons Chamber

[Rishi Sunak]

I thank my right hon. Friend for his comments; I am sure he will see in much of what we have announced today some of the thinking in his latest report. I thank him and his Committee members for all the input they have provided in helping us to think about the next phase of our economic response. He is right that this package focuses on employment and, indeed, on supporting businesses with their cash flow.

With regard to the self-employed, I am glad my right hon. Friend welcomes the extension of the existing support grant. Virtually no other country in the world has done that, and it comes on top of the most generous support for our self-employed of almost any country throughout the response to this crisis. Of course, I will be happy to meet him, but I know he will also be pleased to learn that the measures today to defer income tax self-assessment will be of particular importance to our self-employed small businesses.

[Alison Thewliss (Glasgow Central) (SNP)]

Scottish National party Members are glad that the Chancellor has accepted the need to extend support, but it comes very late in the day and is little comfort to those who have already lost their jobs due to the impending end of the furlough scheme. Industry, trade unions, the Treasury Committee, people across the country and hon. Members across parties in this House have been pleading with him for months now, and it feels as if it is only the latest spike that has prompted his action.

Coronavirus is not done with us yet. The furlough scheme has saved jobs and kept people paying their bills and mortgages. It has been incredibly important and it is a shame that the Chancellor is ending it at the end of next month. Hospitality, travel and tourism, aviation exhibitions, culture and performing arts, even travelling showpeople, and a host of others cannot go back to normal work because the Government have placed restrictions on their businesses.

Those jobs and those businesses are viable—it is not for the Chancellor to decide the viability of businesses. Ending the scheme put 61,000 Scottish jobs at risk. His measures on the pay-as-you-grow scheme recognise that many businesses have deferred payments and have mounting debt. However, the problem for many businesses is not income deferred, but income lost completely, so will he go further and convert those loans to grants and equity, to give companies a bit more certainty about their future? We welcome the hospitality and tourism VAT cut, but will he reassess that in March and perhaps consider keeping it in place permanently to help those businesses pick up, hopefully, through an improved situation next summer?

There is nothing here, nothing whatsoever, for those who have been excluded from existing support schemes—for freelancers, the Forgotten Ltd, the pay-as-you-earn employees, the new starters, the women on maternity and all those who have had not one penny piece from this Government for six months. The Chancellor cannot say he does not know that that is a problem, although he still refuses to meet them. How dare he say that these 3 million people should be left high and dry with nothing?

Will the Chancellor introduce further conditions to prevent unscrupulous employers from exploiting the new schemes as BAE and others have done? Will he support the fire and rehire Bill from my hon. Friend and colleague the Member for Paisley and Renfrewshire North (Gavin Newlands), which would prevent that exploitation in future?

The Chancellor did not have the courtesy to lift the phone to the Cabinet Secretary for Finance in the Scottish Government, Kate Forbes, or her counterparts in Wales and Northern Ireland, to let her know that he plans to scrap the autumn Budget. They found out on Twitter. It is not the first time this Government have had a lack of respect for the devolved institutions, because that happened last year, too. Does he appreciate the very difficult situation he has created? With no access to the fiscal levers and no clarity on the funding settlement, he has tied both of Kate Forbes’s hands behind her back. What does he intend to do about that?

[Rishi Sunak]

I think the hon. Lady is continuing to ask for an extension of the furlough scheme, but fundamentally I do not believe that that would be the right thing to do. At this stage of the economic recovery it is better that our support is targeted and focused on supporting viable jobs in our economy, and that means a new approach. Extending the furlough and allowing people to be at home full time is not the right approach in this phase of the economic crisis. Our new scheme will ensure that we provide support to those who need it most and protect as many viable jobs as possible in many of the industries she mentioned.

The hon. Lady asked about conditions. I agree with her that there should be conditions on larger companies accessing support from the Government for wage protection. There will be conditions on capital redistributions and on the ability to provide redundancy notices to employees while they are on the scheme, and, in the first place, limiting the eligibility for large companies to those that are most in need.

On dialogue with the Scottish Government, I am pleased to say that the Chief Secretary to the Treasury speaks regularly with his counterparts, as I believe he will be doing very shortly. There is a well worked process for how devolved nations’ budgets are set. There is absolutely no requirement for a UK Budget to be done beforehand. Indeed, that was not the case earlier this spring. We will have Office for Budget Responsibility forecasts later this autumn. On the basis of those forecasts, the normal work will be done with our counterparts in the devolved authorities to ensure that they can set the budgets they need.