Covid-19: Economy

Baroness Verma Excerpts

Thursday 4th June 2020 Lords Chamber

[Baroness Verma (Con)]

My Lords, I join all noble Lords in thanking the noble Lord, Lord Eatwell, for securing this debate and I refer to my interests in the register.

People across the globe are coming to terms with a new normal. As our markets are so interconnected, it will remain in all our interests to ensure that we strengthen our partnerships, as well as building resilience in those areas that have been identified as needing much more internal investment.

The Government’s decision to put in measures to protect jobs and support businesses has been very welcome. They have received global recognition for the enormous intervention that the Treasury has made to ensure, as far as possible, that the economy stays afloat. However, in welcoming these measures, I know that the critical work will be over the next several months, as employers work to build consumer confidence and workplaces adjust to the new norms.

Businesses that I have helped to navigate access to the Government’s support packages are now asking for support to see them over the new challenges that they will inevitably face. Will my noble friend say what plans they are looking at in fiscal terms, especially for the SME sector, to cut back on immediate burdens? That could include possible VAT holidays or reducing the VAT burden. Does he agree that in order to reinvigorate many of our city and town centres, measures to give businesses rates holidays or other incentives, for at least nine to 12 months, will greatly assist in supporting smaller businesses?

Among the lessons we have learned is the importance of ensuring that we still maintain critical manufacturing in our country, including the obvious protective medical wear that we so desperately needed. My city of Leicester was once at the heart of manufacturing clothing, but factories lay closed, with more than 10,000 workers at home. Will my noble friend therefore look at how, in the future, local businesses can help to support government responses and be included in all contingency planning?

Income Equality and Sustainability

Baroness Verma Excerpts

Wednesday 6th May 2020 Lords Chamber

[Baroness Verma (Con)]

My Lords, we are grateful to the most reverend Primate the Archbishop of York for this debate. This crisis has demonstrated why it is more critical than ever to work with policymakers, educators and employers to make sure that we put the sustainable building blocks in place to enable economic mobility as well as ensure that the safety nets required for those who need the state to intervene are properly protected.

Many are facing incredibly difficult and uncertain times. The lives of poor working families were already stretched to provide and they were just managing before the crisis. They are now incredibly bleak. There is plenty of evidence available showing that life outcomes are hugely dependent on the tools that enable you to develop, the environment in which you are born, and access to nutrition and education.

These past weeks have seen the best in communities stepping up and helping others, and I hope that will not be lost in the months that follow when we slowly return to a form of normal. However, the solutions must go beyond depending on communities stepping up. Policymakers must work on how the cycles of long-term poverty can be broken. This deeply complex question requires not just short-term financial interventions but a rethink of what community and society mean. How do local businesses once again step up to work with educational institutions, and how do local authorities, with the extra funding that they have received during the crisis, demonstrate sustainable co-ordinated neighbourhoods?

During the last few weeks we have seen price hikes on many products, and no doubt we will see many more. What work is being done with companies, banks and retailers to ensure that already indebted people do not face further financial uncertainty as they try to manage a return to normality? Will my noble friend ensure that help and support is available that is accessible to everyone?