Economic Update

Greg Clark Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

I refer the hon. Lady to the measures in the Budget last week, particularly on homelessness and rough sleeping. We announced £640 million to build 6,000 more units and to provide support for substance abuse support services, once people are off the streets, to help them tackle their long-term addictions. That money will make an enormous difference and build on the good work of the Secretary of State for Housing, Communities and Local Government.

[Greg Clark (Tunbridge Wells) (Con)]

It was not possible for ordinary businesses and working people to anticipate the scale of the most severe public health crisis for 100 years, so does the Chancellor accept that for many businesses the nation has to act, not so much as a lender of last resort, but as a collective insurer of last resort, meeting their unmet operating costs if they are to keep people employed and inoculate against economic contagion?

[Rishi Sunak]

My right hon. Friend is right to highlight the need to provide support for businesses with their fixed costs, rather than their variable ones. That is what we need to help bridge through—the cash grants today related to rateable value, with reference directly to rent payments—but he is right that other fixed costs are people, which is why we are working up measures in that area.