Oral Answers to Questions

Helen Hayes Excerpts

Tuesday 15th September 2020 Commons Chamber

[Jesse Norman]

As the Chancellor has already highlighted, the Government’s intention has been to support vulnerable people, vulnerable businesses and vulnerable families across the country. As he has also pointed out, the evidence appears to be that we have been very successful, with the most targeted support being most heavily felt at the lower end of the income spectrum. If numbers in the aggregate do not please the hon. Gentleman, let me simply tell him the reaction of one chief executive of a retail business in this country, who said to me that without the furlough scheme, that company alone would have laid off 30,000 people. With the furlough scheme, it has been able to continue and recover.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

What assessment he has made of the potential effect on levels of unemployment of withdrawing the (a) coronavirus job retention and (b) self-employment income support schemes.

[Alun Cairns (Vale of Glamorgan) (Con)]

What steps his Department is taking to support self-employed people affected by the covid-19 outbreak.

--- Later in debate ---

[The Chancellor of the Exchequer (Rishi Sunak)]

The Government have put in place a broad set of policies to support businesses and individuals through this crisis. The coronavirus job retention scheme and self-employment income support scheme have supported more than 9 million and 2.7 million jobs and people respectively. As the economy reopens, we must adjust our support to ensure that people continue to get back to work, protecting the UK economy and people’s livelihoods.

[Helen Hayes]

The Institute for Employment Studies is now predicting 450,000 redundancies over the three months to September and a further 200,000 by the end of the year—more than double the levels seen in the 2008-09 recession. Many of those whose jobs are at risk work in the creative industries, performing arts and hospitality, which would be thriving without coronavirus. Why is the Chancellor persisting with a cliff-edge approach, which will inflict the hardship and misery of unemployment on so many people, instead of taking a flexible approach to furlough to save good jobs for the long term?

[Rishi Sunak]

The furlough scheme, as it is currently constructed, is flexible. It was a key demand from business groups and unions, which we responded to. As the economy is slowly reopening over the late summer and autumn, the furlough scheme has adapted to that, allowing businesses to bring back their employees in a flexible fashion, and that is exactly what they are currently doing.