(3 years, 9 months ago)
Commons ChamberMy right hon. Friend asks a really good question. The truth is that there is never a good time according to the industry; there is never a perfect time. When people have a dispute, it depends on which side of the argument one listens to. This will be addressed in the technical consultation. We must remember that this measure is not coming in until 2022, so there will be time. We will publish more information about the evidence that we have received as part of our upcoming consultation, which will be towards the end of the year.
I appreciate the Minister’s point that there is never a good time to try to get consensus from the industry, but surely we can agree that the past nine months has seen quite exceptional circumstances that have had an impact on the entire industry, whether that is small breweries or the bigger ones, particularly given the uncertainty with the on-trade. Breweries such as Mantle Brewery and Penlon Brewery in my constituency of Ceredigion are also so dependent on tourism. Surely introducing these changes at a time of such uncertainty is unwise and should be reconsidered.
That point would be valid if it were proved that every single business was going to be negatively affected. If hon. Members let me get to the point, they will see that that is not actually the case. My officials could probably give me enough material to talk about this issue alone for an hour. However, I will summarise and make the key points. All the evidence points to the fact that small breweries relief does not match industry production costs. Economies of scale in brewing are rather gradual and do not match the all-or-nothing approach adopted by the current scheme. In fact, some of the evidence suggests that there is a growth trap, whereby brewers in a certain range enjoy lower production costs than brewers many times their size as a result of small breweries relief. This is not healthy for any industry.
The amount spent on the scheme has grown rapidly, from £15 million in 2002 to over £65 million in 2019, despite the fact that beer volumes were down over 30% during this period. We owe it to taxpayers to make sure that these growing sums are being used in the most effective way.
(3 years, 9 months ago)
Commons ChamberThe hon. Gentleman is absolutely right about the importance of credit unions in providing credit to those who need it. My hon. Friend the Economic Secretary recently hosted a roundtable to make sure the industry is getting the support it requires.
The announcement of a sovereign green bond is to be welcomed as an important step forward in the financing of infrastructure and industry, and is essential to achieving net zero, but what sort of access will the Welsh Government have to this important source of green finance to ensure that projects and priorities that fall within its remit are adequately supported, given that the Chancellor seems to have ruled out empowering the Welsh Government to issue their own green bond?
(3 years, 9 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My right hon. Friend makes an interesting point. She will know that in terms of the epidemiology and the guidance, that is for my right hon. Friend the Secretary of State for Health and Social Care, but she is right with these questions to point to the economic impact of the measures. That is something on which we continue to have close dialogue with colleagues in the Department of Health and Social Care to ensure that she gets the clarification she seeks.
Yesterday, the Prime Minister stated in the House:
“The furlough scheme is a UK-wide scheme and will continue to be available wherever it is needed.”—[Official Report, 2 November 2020; Vol. 683, c. 54.]
Will the Minister therefore confirm whether the Prime Minister was right and that furlough support will be available to Wales in the future, should public health priorities require restrictions to be reintroduced? A simple yes or no will suffice.
Several times now I have quoted what was said. The Prime Minister said that the Government will always be there to provide support to all parts of the United Kingdom. It is worth taking a step back and looking at the fact that the UK-wide ability to act is how we have been able to provide so much support across the UK with schemes such as the furlough scheme, the self-employed scheme, the loans, extensions and so forth. It is our ability to act across the United Kingdom that has helped many businesses to weather the storm.
(3 years, 10 months ago)
Commons ChamberI can give my hon. Friend that assurance. He mentioned some numbers, and that is ultimately what it is about. We stand in this place and talk about many billions of pounds and policy, but often it is about the people and the jobs and livelihoods that we are trying to protect. I am delighted to hear that the 20,000 people he mentioned have benefited from the support that this Government have put in place, and I can give him and them the assurance that we will continue to do exactly that.
As Wales enters a firebreak lockdown tomorrow evening, there are concerns that there will be a week-long gap in support between the end of the furlough scheme and the introduction of the new wage support scheme. It would be good if the Chancellor could consider giving Welsh businesses early access to that scheme. May I ask him to clarify the eligibility criteria, in particular whether seasonal workers will be eligible for support?
There will not be any gap in support, I am pleased to tell the hon. Gentleman, because, as he knows, the CJRS runs all the way to the end of this month and the job support scheme starts on 1 November. There will be complete coverage and no interruption. We provided Barnett funding on the grants from the moment I announced them, so that is also available to the Welsh Government. With regard to the specific treatment of seasonal workers and the computation of the reference earnings, that is set out in the guidance for the CJRS and that will remain consistent in the new job support scheme.
(3 years, 10 months ago)
Commons ChamberMy hon. Friend is absolutely right, and we debated this yesterday. Much of the debate is about tier 3, but there are businesses that are feeling the impact in tier 2, and we are acutely aware of that and we are discussing that with business leaders. The key issue there is that we have taken toggling measures, for example, the cut in VAT and the extension of the loans. |As he knows, as a senior business figure himself, cash flow is a huge issue for businesses, and the Chancellor has been very keen to work constructively with all business leaders, the trade unions and others, and to consult widely. We have been willing to listen and to extend, for example, the loans that were available in order to pick up exactly the point my hon. Friend makes in terms of businesses in tier 3.
The Minister mentioned earlier that he will meet the Finance Ministers of Wales, Scotland and Northern Ireland later this afternoon. Is he in a position to tell the House whether he expects further support packages for Wales to be announced at that meeting ahead of the two-week firebreak that will come in on Friday?
We have a long-standing and established methodology in terms of support across the United Kingdom through the Barnett process that allows the broad shoulders of the United Kingdom—[Interruption.] I suspect that the hon. Member for Glasgow North (Patrick Grady) wants to come in on that point, so I will give way. It will be done through the Barnett process, but there are some specific issues raised, such as the guarantee, which we have discussed previously.
(3 years, 10 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My hon. Friend is right that the youth investment fund is a very important allocation—£500 million was allocated in September 2019 under the fund. However, he speaks to a more fundamental point, which is that many of those most affected by covid’s economic consequences are the young, who tend to concentrate in areas such as hospitality that are most impacted. That is why the Chancellor has set out measures such as the £2 billion for the kickstart scheme, the tripling of traineeships, the £2,000 for apprentices and the doubling of work coaches. We recognise that it is not just the number of young people whose jobs go, but the length of time that they are out of the labour market that is absolutely crucial. Both of those are key areas of focus and I look forward to working with him in our response on them.
Further to the question asked by the hon. Member for High Peak (Robert Largan), what consideration have the Government given to the impact of local lockdowns on businesses and supply chains located beyond the lockdown areas? What support will be made available to businesses that are materially impacted by restrictions imposed elsewhere?
As I said to my hon. Friend the Member for High Peak (Robert Largan), it is absolutely valid for colleagues across the House to raise the wider impact. That is partly why we gave the guarantee on Barnett consequentials, which has meant that the Welsh Government have benefited to the tune of £4 billion. It is why we are engaging very closely with the Welsh Government, among others, on shaping our response, and why the Chancellor set out, through the winter plan, the package of additional measures, building on his plan for jobs—the £30 billion that was announced in July. We recognise that it is not only the areas most affected by lockdown that have pressures in terms of retaining jobs or cash flow challenges; the winter plan spoke to the issue much more widely across all parts of the United Kingdom.
(3 years, 11 months ago)
Commons ChamberI thank my hon. Friend for her comments, and she is right: the Government must respond with agility as the virus and our economy evolve over the coming weeks and months, and we will continue to do that. I very much sympathise with her and those in the events industry, given the difficulties they are experiencing. I know that conversations are ongoing with the Business Secretary about what can be done to best ensure that, at some point in the future, we can return to what we all want, which is the thriving industry her constituency wants to see.
The Chancellor mentioned that the existing self-employed support grant will be extended on similar terms and conditions to the new jobs support scheme, but can he tell the self-employed in rural areas such as Ceredigion, who represent almost 30% of the workforce, whether he has changed the terms and conditions in such a way as to ensure that those who have been excluded from support so far will now get the help they deserve?
The eligibility conditions will remain as they are, with refinements to make sure that businesses are still trading over the winter and to recognise that they have suffered and are suffering an impact on revenues through coronavirus. The reasons for those eligibility criteria are well documented and have been discussed in this House many times, so I will not recap exactly why they are there, but it is worth bearing in mind that the extension of this support means that we have provided more support to 2.5 million self-employed people, which is considerably more than any other country has and for a longer duration.
(3 years, 11 months ago)
Commons ChamberI join others in congratulating my hon. Friend the Member for Brighton, Pavilion (Caroline Lucas) on securing the debate this afternoon and on drawing attention not only to the pivotal role of self-employed people across the UK but to the need for further Government support for them in this time of crisis. This is particularly the case in Wales, where self-employed rates in rural areas such as Ceredigion are far above the UK and Welsh averages. In the previous debate, my right hon. Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts) rightly noted the need for sector-specific extensions to the furlough scheme, and I would argue that a similar targeted approach is urgently required to support self-employed and freelance workers, especially those working in the creative, tourism and hospitality sectors, and also in the events sector, which in Ceredigion has been particularly hit this summer, with the cancellation of dozens of local agricultural shows, carnivals, weddings and eisteddfodau.
In the brief amount of time I have available to me this afternoon, I want to echo others in urging the Government to look again at helping the individuals and businesses who have been unable to access any support thus far. I welcome the UK Government’s self-employed income support scheme, but, as has already been noted, almost 3 million self-employed workers were excluded from it, many of whom live in Ceredigion and work in a range of sectors and different circumstances. Composers and architects, newly employed workers and small business owners have all been excluded from support after falling foul of the scheme’s criteria, perhaps by submitting PAYE details a few weeks after the cut-off date or because they have earned too much in previous years.
Another hurdle that needs to be addressed, which has punished far too many, is the requirement to prove that at least 50% of an individual’s income comes from self-employment. That criterion especially disadvantages freelancers in the arts and creative sector, who draw their income from a range of sources. Just as devastating was the exclusion from both the coronavirus job retention scheme and the self-employed income support scheme of newly self-employed workers and those limited company directors who are paid through PAYE on an annual basis.
I am talking here about individuals and businesses who have seen their income completely disappear in recent months and who have little prospect of any work for months to come, and I therefore urge the Government to take action to address these issues, to extend the support to prevent a jobs crisis over the winter, and to look again at the rules so as to help those who have thus far been excluded through no fault of their own to get some support.
(4 years, 1 month ago)
Commons ChamberDiolch yn fawr, Madam Deputy Speaker, for calling me to speak in this important debate.
It is a pleasure to follow the hon. Member for High Peak (Robert Largan). I agree with him that some of the measures in today’s statement were bold. I would highlight the cut in VAT to 5% for the tourism and hospitality sectors. That is, of course, a long-standing Plaid Cymru policy. I never thought I would stand in this place and thank a Conservative Chancellor for the temporary implementation of Plaid Cymru policy, but there we are. I do thank him nevertheless.
I also put on the record my support for the measures on youth employment. They are particularly important for Wales, where employees under the age of 25 were almost three times as likely to be working in sectors that were shut down than those of any other age group. Of course, 18% of female employees worked in shut-down sectors, compared with 14% of male employees. In welcoming those measures, I note that the fundamental challenges facing the UK economy, including low productivity and regional inequality, have been exacerbated by the covid-19 crisis.
To address those long-term problems, I pressed the case for a review of existing tax reliefs and further innovation funding during the Finance Bill debate. Today, I fear that an opportunity has been missed to increase R&D credit, as well as to review reliefs such as the enterprise investment scheme to ensure that taxpayers’ money is adequately supporting private investment in the marginalised areas of the UK. I note only that 46% of public R&D funding is spent between London, Oxford and Cambridge.
I had hoped to see some measures to address that issue. What is more, the statement might have talked a little more about the future shape of the economy. Despite the ravages of covid-19, we have an opportunity to facilitate a green transition and to address some of the fundamental issues of the pre-covid economy that I mentioned earlier—low productivity, low wages and low growth.
What I would argue is the long overdue support for home insulation is another measure that I welcome. In doing so, I say to the Minister that I hope the measure will utilise the fantastic nature of Welsh wool, particularly given the difficulties that the British wool industry is facing.
With research showing that just 1% of the global fiscal response to covid-19 is going to green projects, today was a clear opportunity for the Government to set out their environmental credentials and to lead by example. Instead, the £3 billion promised pales in comparison with the example of Germany, where a third of its €130 billion stimulus is targeted directly at lowering emissions. I am conscious that the Chancellor suggested in his speech that a third phase to the economic response will focus on efforts to rebuild the economy, so I very much hope that such issues will be addressed at that point.
To conclude, the Chancellor explained that the current phase—the second phase, which we are addressing today—is about jobs, and measures on jobs being placed at the heart of the economic recovery. In that respect, I note that economic recovery is intertwined with the success of containing any outbreaks of the virus. As such, we need to explore ways to introduce targeted furlough schemes and business support schemes to support local lockdowns, which recent events suggest will become the norm.
My concern is that with statutory sick pay at less than £100 a week at the moment, many people will face a difficult decision if they are asked to self-isolate—a choice between doing the right thing for public health and putting enough food on the table for their family. That is an unnecessary risk, which could undermine not only the efficacy of local lockdowns but any wider economic recovery. I hope that the Minister and the Government will give further consideration to those points.
(4 years, 1 month ago)
Commons ChamberMy hon. Friend will know, of course, that we published a code of practice to encourage all parties involved in a landlord-tenant situation to work together to ensure equity and swift recovery. More widely, we have made available over £330 billion of guarantees through the coronavirus business interruption loan scheme, the large business interruption loan scheme, and the corporate financing facility. But of course I would be happy to continue to discuss this issue with him.
The Government have been carefully considering the potential issuance of a UK sovereign green bond. At present, we have no plans to do that, but we continue to monitor the case for one, and we will keep it under urgent review.
I am glad that the Government will keep this matter under consideration because, as evidenced recently by Quebec, green bonds can be effective in raising capital investment and investment for operational expenditure to further the green transition. Will the Government also consider enabling the Welsh Government to issue such a bond to help the effort for a greener economy?
Clearly, debt and the handling of it is a significant challenge for the Government at this time. The core gilt programme is the most stable and cost-effective way of dealing with our financing needs. The hon. Gentleman makes a reasonable point. We will continue to look constructively at all options and at the changing environment as a consequence of this crisis.