Oral Answers to Questions

John Baron Excerpts

Tuesday 24th March 2020 Commons Chamber

[Rishi Sunak]

As we are putting in place the detailed guidance for the scheme, we are actively considering the question of how best to average the earnings of people in this situation. I very much take on board the suggestion that the right hon. Gentleman has made, and I know that my team are engaging with those unions as we speak to try to get the details right.

[Mr John Baron (Basildon and Billericay) (Con)]

T3. I commend the Chancellor and his team for the robust policy response that we have seen to this crisis so far, but may I ask them to continue to focus laser-like on the issue of cash flow, which is particularly important to smaller businesses, particularly important to the workforce, and particularly important to the vulnerable groups in society? That issue of cash flow is probably the most important when it comes to determining employment, which is important to everyone in this Chamber and to the country at large.

[Rishi Sunak]

My hon. Friend is absolutely right about the importance of cash flow, which is why we have targeted our interventions specifically at smaller businesses by providing extra cash flow support. We have done so through the £10,000 grant to every business in receipt of small business rate or rural rate relief and, indeed, through the deferral of VAT, which starts from today for the quarter. As my right hon. Friend the Financial Secretary to the Treasury said earlier, that represents more than £35 billion, or 1.5% of GDP-worth of tax deferral, providing immediate cash-flow support. We have done the same thing for self-assessment payments that are due in the coming months and have also, as of yesterday, launched a business interruption loan scheme, which my hon. Friend has done fantastic work developing. It will provide 12-month interest-free loans to small businesses, again, to help provide them with the liquidity that they need to get through this.