Oral Answers to Questions

Derek Thomas Excerpts

Tuesday 24th March 2020 Commons Chamber

[Rishi Sunak]

We are not in favour of a universal basic income, although we have strengthened the safety net for the most vulnerable in our society, with more than £7 billion invested into improving our welfare system for this year, including improvements to universal credit, employment support allowance and, indeed, the local housing allowance. Those payments are all available more quickly, more easily and more generously than they were before, and I know that will make an enormous difference to many vulnerable people.

[Derek Thomas (St Ives) (Con)]

I am grateful for the opportunity to raise an issue that seems unique to my constituency. The Isles of Scilly sit 28 miles off Land’s End, and all people and supplies travel via large and small private companies. Those businesses rely on the tourist trade in the summer, but that has completely collapsed, and every single one of those businesses is liable to collapse if the Government cannot move quickly. Can the Chancellor look at this issue urgently, because 2,500 people are relying on urgent action from the Treasury to make sure that their transport infrastructure system is sustained and retained?

[Rishi Sunak]

I am happy to talk to my hon. Friend further about his particular constituency issue, which I know poses particular challenges. We have committed to providing local authorities—and indeed all Departments —with any funding required to support public services, including local transport infrastructure in their communities.

Contingencies Fund Bill

Derek Thomas Excerpts

Committee stage & 2nd reading & 2nd reading: House of Commons & Committee: 1st sitting & Committee: 1st sitting: House of Commons
Tuesday 24th March 2020 Commons Chamber

[Derek Thomas (St Ives) (Con)]

I rise to speak on the Contingencies Fund, not least because the Isles of Scilly transport system—I have mentioned this once already today—is desperate for a contingencies fund. I will set out why, and then how, local departments and Government Departments might help with their own contingencies fund.

The Isles of Scilly is 28 miles off Land’s End; 2,200 people live there and depend on the transport system for everything they need. The transport system is entirely run by private operators, with no help from the state—we have been working to try to address that. The community on Scilly rely on this transport for absolutely everything, including, in some cases, non-emergency medical travel.

Much of the transport serves the remote population all year round. There is aviation, freight transport and inter-island transport, which includes the school bus and transport for free bus pass holders and everybody else who needs to move between the five inhabited islands all year round. That is made possible only by the vibrant, successful tourism sector, which ordinarily starts with vigour this week. Many Members tell me, “I have just been on my holidays on the Isles of Scilly”. They will understand how remote but how precious this set of islands are.

As we expected, the demand for tourism has collapsed dramatically, and rightly so, but so far in all the measures that have been announced, very few actually help. For example, the help with wages is based on the figure for the previous month. As we start the tourism industry on Scilly now, there is no record of wages for the previous month. If we lose these people, who have the right kind of skills and tickets to operate on these boats, the boats and vessels cannot continue to work, even when we get past the coronavirus outbreak.

I listened very carefully to the Chancellor’s response to a question I raised earlier, knowing full well that the measures so far do not really help with any of the issues faced by the transport operators on Scilly. He suggested that local authorities are in a position to help, and that is welcome. This is where I get on to the issue of a contingencies fund for Government Departments. Will the Secretary of State confirm that the Council of the Isles of Scilly, Cornwall Council and the Department for Transport have a contingencies fund to underwrite the running costs of each of the operators serving Scilly so that they can survive this difficult period and be there to be part of the recovery, once we have beaten coronavirus? The truth is that if any of these operators collapse, the state will have to step in, and it is not for the state to run these essential services, in my understanding. It is far better to enable them to survive these three or four months, or however long it may be.

This is a critical issue for very many families and business owners, and more clarity is needed from a Government who have rightly said—I have supported them from the outset—that they would do whatever is needed, and whatever it takes. Will the Minister please take this to the Treasury and find out what can be done quickly to ensure that these businesses last even beyond the end of this month? The situation is critical.

Economic Update

Derek Thomas Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

I very much hope that the businesses that are looking at the range of measures outlined today will see that there is significant financial support for them, whether that is business rate holidays, direct cash grants or access to incredibly low-cost and accessible financing. The combination of all those measures, on top of the compensation we will pay to small and medium-sized businesses for statutory sick pay, is a significant direct fiscal support for businesses up and down our country to protect people’s jobs.

[Derek Thomas (St Ives) (Con)]

Life and the economy on the Isles of Scilly are particularly fragile. To give a quick example, a passenger boat operator who needs to provide a service for the whole of the islands but relies on tourism tells me that he has five weeks left in business. What can the Chancellor do to help businesses and the community on the Isles of Scilly?

[Rishi Sunak]

My hon. Friend is right to highlight the particular issues that his remote communities face. I believe the measures announced today, whether on business rates or direct cash grants, will make an enormous difference to local businesses in his constituency.

Oral Answers to Questions

Derek Thomas Excerpts

Tuesday 11th February 2020 Commons Chamber

[Rishi Sunak]

The figures the hon. Gentleman refers to are pure speculation. The formula has not been concluded yet, so it is a bit difficult to talk about the conclusions in advance of that. There will be a consultation. Regardless of the type of area that any Member in this Parliament represents—rural or urban, north or south—it will be an evidence-based formula. All the various criteria that drive local government spend, whether it is rurality or deprivation, will be taken into account. All Members can have input into that process and can have confidence that the final formula will be fair and, importantly, evidence-based.

[Derek Thomas (St Ives) (Con)]

The Treasury team will know how difficult it is to get a funding formula to operate for places like the Isles of Scilly, which are remote and sparsely populated. Good work is being done to bring health and social care together under one roof. Can the Minister shed more light on how difficult areas such as this can be funded in the future?

[Rishi Sunak]

My right hon. Friend the Chancellor met my hon. Friend and his local authority recently to discuss this issue, and I have taken representations from them in the past. My hon. Friend is right that rurality and the particular geographic challenges posed by his constituency should be taken into account in the new formula. I am sure that my right hon. Friend the Secretary of State for Housing, Communities and Local Government will do that when he looks at all the representations in the spring.