Lockdown: Economic Support

Alison Thewliss Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Steve Barclay]

My right hon. Friend is right to point to the fact that some were not covered. In fact, that has been an area of much debate within the House. He will understand that there is a distinction to draw between employees who, because their details had not been notified to HMRC at the cut-off point last time, were excluded, and those who because of the furlough extension will be included moving forward, so some of that population cohort are covered.

In respect of the self-employed cohort, my right hon. Friend will be aware that we have so far offered over £30 billion of support to the self-employed, which is generous by international standards. He knows, however, that, within that, there are different cohorts. There is the cohort relating to company directors, where the issue remains the same: what is dividend income and what is not. He will know that another part of that group is those earning above £50,000, and we made a decision to target support below that threshold. He will know that some people are self-employed but that is not the majority of their income—less than 50% is through their being self-employed—and that we targeted funding at those for whom self-employment was their main provision. So there are different cohorts within the excluded population, but those who were employed will be covered by the furlough extension.

[Alison Thewliss (Glasgow Central) (SNP)]

The UK Government continue to lurch around in absolute chaos, with a Prime Minister forced, due to the leak of his plans, to come on TV and, after hours of delay, squeezing in before “Strictly” to announce an English lockdown and the extension of furlough just before it was due to expire. We have been telling them for months that it would need to be extended. While I welcome the action, this late extension will be of absolutely no comfort to those who have already lost their jobs due to the Government’s incompetence, or to the businesses in my constituency who have done their utmost to support their staff and now have no idea where they stand. It is no comfort either to those who continue to be ignored. Those excluded from the initial support schemes face a bleak winter ahead. Will the Chief Secretary ensure that they do not lose out again? There are still many sectors of the economy that cannot go back to normal.

The overwhelming sense, for many of us, is that this is not a Union of equals. When Wales, Northern Ireland, Scotland and parts of the north-east of England asked for furlough to be extended this autumn, they were told that the Chancellor’s magic money tree had lost all its leaves. Yet, when the Prime Minister decided that England needed to go into urgent lockdown, it turned out that the magic money tree was in fact an evergreen.

Yesterday, the Prime Minister gamed his answers on furlough in the House in a pathetic and transparent attempt to make the hon. Member for Moray (Douglas Ross) look good, but he was contradicted on Sky News this morning by the Secretary of State for Housing, Communities and Local Government who said it would be up to the Chancellor to decide if furlough would be available to the devolved nations after 2 December. In an act of further disrespect, the Chancellor is not even here to answer this question. Will the Chief Secretary therefore be clear and honest about whether the Treasury will make furlough and SEISS available at 80% to any part of these islands that requires that after 2 December?

[Steve Barclay]

The hon. Lady started by saying that we were disrespecting parts of the United Kingdom. I was on a call yesterday with the Chancellor of the Duchy of Lancaster, the First Secretary of State and the Home Secretary and others, with the First Minister of Scotland, the First Minister of Wales and the Deputy First Minister of Northern Ireland as part of our regular dialogue. That continues across the United Kingdom and, indeed, at official level. The chief medical officers liaise extremely closely together.

Secondly, the hon. Lady’s various grievances are somewhat both surprising and disappointing when the Government have listened and introduced, for the first time, an up-front Barnett guarantee that has provided the Scottish Government with £7.2 billion of funding at an earlier point than would traditionally be the case, recognising the volatility of the situation with covid. It would be good for her to recognise that that is unprecedented and different. Again, on the call yesterday, I signalled to the First Minister that this week we would update with a further uplift—following our unprecedented action—to give more clarity on the Barnett guarantee and the consequentials flowing from that.

Thirdly—[Interruption.] The hon. Lady keeps chuntering. Many of the schemes are UK-wide ones: we have extended the loans, the coronavirus job retention scheme and the self-employed income support scheme. Those can be delivered through the broad shoulders that the United Kingdom offers. It is true that, through that capacity to act as one United Kingdom, we have been able to protect up to 1 million jobs in Scotland. It is important that we work together. That is why we were engaging with the Scottish Government yesterday. More can be achieved if the Scottish Government and the UK Government work together. That is how, to date, we have protected up to 1 million jobs, and that is the best way forward.