Additional Covid-19 Restrictions: Fair Economic Support

Carolyn Harris Excerpts

Wednesday 21st October 2020 Commons Chamber

[Carolyn Harris (Swansea East) (Lab)]

Covid restrictions in tiers 2 and 3 have put untold pressure on a wide range of businesses, and while some have been provided for, many have not. Our hospitality industry has taken a huge hit, but what about its supply chains? Food and drink wholesalers have seen a 70% reduction in sales, and with no financial support, many are on the brink of collapse. But it is not just hospitality venues that they serve but our schools, hospitals, prisons and care homes; and some of that is specialist food, which cannot be bought in a supermarket.

Just this weekend, I read that a Treasury spokesman had said that support for the hospitality sector “and its wider chain” was available, so I spoke to the supply sector, and they said that they certainly had not had support. Bidfood, based in my constituency, had seen an almost 50% downturn in sales, and consequently had to make redundancies. They tell me that the food supply industry has not yet been eligible for any Government financial support, despite what the Treasury says. Wholesalers such as Bidfood and Castell Howell, based in Llanelli, are fantastic supporters of community campaigns. They have helped me with my summer lunch club, the Swansea Together coronavirus response and the “Everyone Deserves a Christmas” campaign. But now they need support to help them to survive.

Food and drink wholesalers desperately need the furlough scheme to be extended, prolonged business rates relief and discretionary grants to enable them to survive the crisis. They do not know how long the uncertain times will last—we do not know and the Prime Minister and his Government do not know. But what we do know is that these areas facing additional restrictions need additional support, and they need it now.

Too many times during this pandemic, measures have been put in place too late because of this Government’s failure to be decisive. The First Minister in Wales has taken the decision to introduce a fire-break lockdown, and I have no doubt that many businesses across Wales will be disappointed to be closing their doors again. But they will understand that this has to be done. We must ensure that they get the financial support to see them through this time.

This lockdown is falling between two different Government schemes. The First Minister asked the Treasury to bring forward the job support scheme and to work with the Welsh Government—they even offered financial support to make sure that businesses in Wales would be helped. The Prime Minister constantly talks about putting his arm around the nation. Well, now is his opportunity to do that: embrace the First Minister’s suggestion and make sure that businesses in Wales can survive this pandemic and this lockdown.