Covid-19: Economy Update

Jim Shannon Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

The hon. Lady asks for an extension of the job retention scheme. It is worth drawing her attention to the fact that the employer contribution to the job retention scheme in October is 20%, whereas under the new, more generous, job support scheme it has been reduced to 5%. That is more generous and will protect more jobs and more people’s livelihoods.

[Jim Shannon (Strangford) (DUP)]

I welcome the Chancellor’s commitment to helping the whole United Kingdom of Great Britain and Northern Ireland; we much value the money that has come forward. May I speak for the distribution sector, which daily delivers perishable foods not only to care homes, the NHS and schools, but to pubs, cafés and restaurants that are closed in tier 2 and 3 locations? The costs for distribution remain the same for jobs, vehicles and businesses. What help can those in the distribution sector access as a result of the Chancellor’s announcement?

[Rishi Sunak]

The hon. Gentleman makes an important point about the supply chains of those who serve the hospitality industry. I draw his attention to two things. The tier 2 grant programme that I announced today will contain a 5% discretionary top-up, which local authorities can use at their own discretion to support local businesses; they may choose to use some of it to address the needs that he outlines. Also, we have not targeted the enhanced generosity of the job support scheme purely at the hospitality industry, or indeed purely at businesses operating in tier 2 areas, because we recognise the complexity of the supply chains that he mentions. The very generous job support scheme will be available for all businesses in all parts of the country, regardless of sector, which I think will make an enormous difference to the businesses that he mentions.