Retail Businesses: Financial Support

Baroness Andrews Excerpts

Monday 21st September 2020 Lords Chamber

[Lord Allen of Kensington]

To ask Her Majesty’s Government what steps they are taking to provide financial support to retail businesses which have been categorised as ‘undertakings in difficulty’ under European Union state aid rules, and are unable to access support under the Coronavirus Business Interruption Loan Scheme; and what assessment they have made of the effectiveness of any financial support that they have provided to such businesses.

[Baroness Andrews (Lab) [V]]

My Lords, on behalf of my noble friend, and with his permission, I beg leave to ask the Question standing in his name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

The Government amended the CBIL scheme on 30 July to exempt smaller businesses from elements of the undertaking in difficulty test. The British Business Bank has also clarified that if an applicant was not classified as such from the application date, but was so on 31 December 2019, they would, in principle, be eligible. By 16 August more than £53 billion had been approved through the loan schemes, including 60,409 loans worth £13.68 billion through CBILS.

[Baroness Andrews (Lab) [V]]

My Lords, the changes for small businesses that the Minister mentions are very welcome. Does he agree with me, however, that it is the larger stores that face the greatest difficulties? Over 13,000 stores have closed in the year to date and 125,000 retail staff have lost their jobs. One in three of retail staff are aged under 25, and 146,000 of them have lost their jobs in the last quarter. In the light of potential further restrictions, will the Government look urgently at providing more access to finance and at extending business rates relief and the furlough scheme, in a targeted way, to stem the further collapse of retail and, indeed, the high street itself?

[Lord Callanan (Con)]

We continue to keep all these things under review. I hope that the noble Baroness will appreciate that our response so far has been tremendous. The Bounce Back Loan Scheme has supported nearly 1.2 million loans; the Coronavirus Business Interruption Loan Scheme has supported more than 60,000 loans, worth £13.7 billion. There are, of course, always additional things we could be doing but I hope she will acknowledge that we have done a lot for this sector.