Economic Outlook and Furlough Scheme Changes

Baroness Neville-Rolfe Excerpts

Thursday 18th June 2020 Lords Chamber

[Baroness Penn]

The noble Lord will be aware of my previous answer on the two-metre rule. In our road map for reopening the economy, we have been able to take important steps forward—for example, the reopening of non-essential retail this Monday. We encourage people across the country to be aware that, when we take such steps to reopen, it is then safe to go out and support their local high street and their local economy.

[Baroness Neville-Rolfe (Con) [V]]

Building on what my noble friend the Minister just said, does she concur with the view that we have now reached the stage—admittedly, slowly and fitfully—for normal economic life to restart? Does she agree that we should be wary of extending special schemes such as furlough for too long because of their huge cost and the inevitable disincentive and perverse effects?

[Baroness Penn]

My noble friend is right that there is a balance to be struck with such schemes. The pathway that we have set out for the gradual contribution of businesses to the costs of furloughed employees, and the ability to bring them back to work flexibly and for as many hours as they need, strikes the right balance in that scheme.