Covid-19 Support Schemes: Ineligible People Debate

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Department: HM Treasury

Covid-19 Support Schemes: Ineligible People

Andrew Selous Excerpts
Wednesday 9th December 2020

(3 years, 4 months ago)

Westminster Hall
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Andrew Selous Portrait Andrew Selous (South West Bedfordshire) (Con)
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I think we should start by thanking the Government for what they have done to support people through a very difficult time. The Government have spent some £210 billion in dealing with the pandemic. That is an unprecedented fiscal response. We should put on record our thanks for the scale of that intervention towards people who are in more regular employment.

The scale of that generosity brings into question its allocation, when people in so many groups have not received the same scale of Government funding as people in PAYE employment. It is not just about individuals. I have spoken about the events industry before and the exhibition industry. I spoke with the British Events Industry Coalition earlier this week. In the weddings industry, I think of Eggington House in my constituency.

In terms of individuals, we are talking about people who work with a construction industry scheme card, directors who pay themselves through dividends and the newly self-employed. I had a letter today from a driving instructor. He only set up in October 2018. That was not his fault. He has done everything he has been asked and he pays what he should, but he is left out. This affects beauticians, freelance musicians and so many more.

The Office for Budget Responsibility, in its July 2019 fiscal risks report, put the tax reduction for someone on £70,000 being paid through dividends at 11.6 percentage points. That is slightly less tax, but those people are getting very much less than 11.6 percentage points lower than what people are getting through the furlough scheme. I ask the Treasury to look again—it has clever people—and to please remember these 2.9 million people who have been left out so far.