Economy: Update

Baroness McIntosh of Pickering Excerpts

Tuesday 28th April 2020 Lords Chamber

[The Deputy Speaker]

Yes. As the Minister was not able to hear, the noble Lord should indeed ask his question again.

[Baroness McIntosh of Pickering (Con)]

Will the noble Baroness be able to stop the clock, if questions are being repeated?

[The Deputy Speaker]

I will seek clarification on that point, but I anticipate that we will be able to do that. Now we have the noble Lord, Lord Agnew, again—splendid. Would you kindly say a few words so that we can be sure that everyone can hear you?

--- Later in debate ---

[Lord Agnew of Oulton]

The noble Baroness is right to say that universities play an extremely important part both in our society and in our economy, but it is worth reassuring her that they are eligible in aggregate, as business in their own right, for some £700 million-worth of coronavirus support. That support is available to them now. Very active discussions are going on, particularly about the loss of foreign students, because of course they pay a higher tariff and thus have in the past provided good cash flow for universities. It is worth making the point that universities have always been jealous of their independence, and if they need government support now, I hope that there will be a bit of humility on the part of those vice-chancellors who take very large salaries from their organisations. I would expect there to be some conversation about that if there is to be any support.

[Baroness McIntosh of Pickering]

Perhaps I may I impress upon my noble friend the Minister the plight of small and medium-sized businesses, particularly those in the tourism, hospitality and retail sectors. My noble friend will appreciate that many in the hotel and tourism sectors have already lost what is the main part of their season, from Easter, and in addition they have a great number of staff who are on zero-hour contracts. Many have chosen to take council tax payments in lieu of business rates but are also faced with commercial mortgages, on which they cannot get any form of mortgage payment holiday. Will my noble friend ensure that the Treasury directs some support particularly to those in the hospitality, tourism and retail sectors whose cash flow is at rock bottom?

[Lord Agnew of Oulton]

I share my noble friend’s concern for these particular sectors, and I understand absolutely where she is coming from. It is worth reiterating the specific support which has already been made available. I refer to the 100% holiday for business rates which is estimated to be worth £11 billion just to English businesses, as well as the grant system. Some 203,000 properties are eligible for a £10,000 grant and 120,000 properties are eligible for a £25,000 grant which in aggregate comes to around £5 billion. I also refer to the bounce-back loans which were announced yesterday since they will be some which these businesses can take advantage of. However, I repeat that I share my noble friend’s concerns.