Coronavirus: Supporting Businesses and Individuals

Christian Wakeford Excerpts

Tuesday 23rd February 2021 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

We have heard from the Labour party that, rather than look at the public finances as a whole, as the Chancellor is about to do in a week’s time in his considered response to the road map, they would act ad hoc. This Government believe that we should indeed look at the economy as a whole and at the businesses that need that support.

We resolved to protect people’s jobs and livelihoods, and to support businesses and public services across the UK through the challenge of covid-19, and that is what we have done, with immediate support on a scale unmatched in recent history. To date, the Government have spent £280 billion more than that, providing certainty over the course of this pandemic, even as measures to prevent further spread of the virus have changed.

Yesterday, the Prime Minister announced our road map out of the current lockdown in England. Businesses have called for clarity and a road map to lead the country out of restrictions, and the Government have responded. The design of the road map has been informed by the latest scientific evidence. It seeks a balance between our key social and economic priorities while preserving the health and safety of the country. Every step to ease restrictions will be taken at the same time across England, in a national approach. The road map is yet another example of the support that this Government have provided, giving businesses and individuals up and down the country the clarity to plan ahead and manage everything from staff to supplies. In next week’s Budget, the Chancellor will set out the next phase in our economic support package to reflect the steps set out in the Prime Minister’s road map, including further detail on economic support to protect jobs and livelihoods across the UK. As the Prime Minister and the Chancellor have said previously, this Government are committed to doing whatever it takes to support our country throughout the covid pandemic, and that support will continue.

We have introduced an unprecedented package of support for businesses that have been severely affected by restrictions. Businesses that are legally required to close may be eligible for grants of up to £4,500 per six weeks of closure. The closed business lockdown payment has provided critical support to closed businesses during this difficult spring period, with additional grants of up to £9,000. Just for the period of national lockdown, the support for closed businesses will amount to more than £6 billion. Discretionary support has been made available to support those businesses that have not been mandated to close, but that have had their trade adversely affected by the restrictions.

[Christian Wakeford (Bury South) (Con)]

The hon. Member for Houghton and Sunderland South (Bridget Phillipson) talked about the excluded. Does my hon. Friend agree that the discretionary grant is a fine example of how we can get funding to those who have fallen through the gaps? Does he also agree that councils should be urged to consider all businesses, including those that are home-based?

[Paul Scully]

The discretionary grant is there to show flexibility. Local authorities have been charged to come up with their own plans to reflect their own local economies and their own needs in order to capture as many people and businesses as possible.

In January, the Chancellor announced that a further £500 million of discretionary funding was being made available to local authorities. That is in addition to £1.1 billion already allocated back in November 2020. That business grant scheme has continued to provide business with vital funding during both the national and local restrictions.

--- Later in debate ---

[Christian Wakeford (Bury South) (Con)]

This is a debate of two halves: we have the doom, gloom and naysaying from those on the Opposition Benches, and on the Government Benches we have optimism. We have a route map out of these restrictions. We have light at the end of the tunnel, and now we know how long that tunnel is. We have the additional restrictions grants, business and hospitality support grants, self-employed support schemes, business rates relief and discretionary funding. We should be immensely proud of all those measures. As my hon. Friend the Member for Bury North (James Daly) said, roughly £280 billion has been invested to support businesses and individuals, and we should rightly be proud of that.

There are the excluded, and as I said earlier to the Minister, the discretionary funding that has been brought forward is a prime example of how to tackle that. I say again to the Opposition, to the Mayor of Greater Manchester and to my local council that if they are serious about tackling these cohorts, they should speak to their councils and tell them to open up that discretionary funding for these businesses. [Interruption.] The discretionary funding is available for all. We are hearing, “We want action now,” but it is not right to take these decisions in isolation; we should be taking them in a wider context, as part of the Budget. It will give the Opposition their attack ads today and the ability to create a story that is almost non-existent, but we will see a truly all-encompassing approach next week in the Budget, and that is the right thing to do. It will give the Opposition another week to see which Conservative policies they like and want to try to adopt as their own for another week.

As we come out of these restrictions, we have the ability to build back better, build back fairer and build back greener. The “Skills for Jobs” White Paper has been published, and we should be proud of it. It talks about institutes of technology, which will make sure that our skills force of the future is trained for the jobs that are coming. Businesses—and in particular those in the hospitality supply chain, weddings and events—not only need a date for when they can reopen, but they need to know whether they will be opening with covid-secure measures or no restrictions whatsoever. They need to know that early, so that they can plan for all eventualities. While most businesses in the travel industry will be able to reopen and hopefully reopen fully, the sector will be heavily dependent on global restrictions, so we may need to look at further assistance for it. I hope the Minister will be able to address that.