Economic Update

Baroness Laing of Elderslie Excerpts

Monday 11th January 2021 Commons Chamber

[Rishi Sunak]

My hon. Friend makes an excellent and insightful point. This is about resilience in the public finances—he used the word well. We have faced two supposedly once-in-a-generation shocks in the space of 10 years and we do not know what the future holds. What we do know is that we want to encounter the next shock that comes along in as strong a position as possible, because ultimately that will enable us to respond in as comprehensive and generous a way as we have here. That is why, over time, we must rebuild our public finances to that position of, as he said, resilience and strength.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I wonder if hon. Members really do believe in being fair to everyone. If they do, I implore them to ask short questions—do not make statements and do not make speeches. This is a statement by the Chancellor. It is an occasion for a quick question. I have 36 people to get in and 25 minutes in which to do it. Shall we see whether Members really do want to be fair to everybody else?

[Daniel Zeichner (Cambridge) (Lab) [V]]

Behavioural scientists are clear that to get people to self-isolate requires that they have the capacity, motivation and opportunity to do so. So far, frankly, the £500 on offer is not achieving that. What assessment has the Chancellor made of that scheme, and what is he planning to do to improve it?

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[Rishi Sunak]

My hon. Friend is right about the supply chain. He will know that much of the supply chain also supplies the on-premises trade as well as the off-premises, so those businesses will have some trade during this period, but he is right that we must ensure that it is there for the recovery. The supply chain will, of course, benefit from our furlough scheme, which is very comprehensive in its eligibility and very generous. I thank him for his points and will of course bear them in mind.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Let us see if we can go a bit faster to try to get everybody in.

[Hannah Bardell (Livingston) (SNP) [V]]

The Young Women’s Trust found that because of covid 1.5 million women are losing income; 69% are claiming benefits to the first time; half of young mums are unable to keep or find employment because of childcare costs; and a third of women will not report sexual harassment for fear of being fired. Can the Chancellor therefore tell me how his Government can possibly continue to justify the five-week wait, have statutory sick pay at a disgracefully low £94 a week, and exclude many female business owners from help? Will he take proper action for women, who are bearing the brunt of this pandemic?

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[Rishi Sunak]

The hon. Lady, for whom I have a lot of respect, mentioned two things: unemployment and child poverty. We know that the best way to ensure that children do not grow up in poverty is for them not to grow up in a workless household; indeed, the rate of poverty among children who are not in workless households is five times lower. Work—removing unemployment—is the best, surest and most sustainable way out of poverty, which is why this Government have backed with billions of pounds our various initiatives to support people into work, which I know she will support, whether that is the restart scheme, the kickstart scheme, doubling the amount of work coaches or increasing the incentive for people to take on new apprentices. Those are all the surest ways to help people out of poverty, and that is why we are committing billions of pounds to that end.

[Madam Deputy Speaker (Dame Eleanor Laing)]

We are officially out of time, but I will keep this running for a few minutes longer if Members will be decent and be quick. There are two more items of business, and it is simply not fair on other Members later in the day if this item of business takes too long.

[Caroline Nokes (Romsey and Southampton North) (Con) [V]]

Retraining opportunities will be a crucial part of our economic recovery. I have been really impressed by companies such as Openreach, which has set a promising target for more women in its employment programmes. Will my right hon. Friend the Chancellor look at making sure that women are not excluded from the economic recovery?

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[Rishi Sunak]

The Welsh Government have received over £5 billion of up-front funding guarantees to support their local economy. I hope they will use it to do exactly that, but also, Welsh businesses will benefit from UK-wide interventions—for example, our furlough scheme, our loan programme or, indeed, some of the VAT reductions—and I have said that all our support now extends through to the spring. We will have a Budget on 3 March, where we will set out the next stage of that economic response to coronavirus.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Between this item of business and the next statement, I will briefly suspend the House for three minutes.