Oral Answers to Questions

Debate between Kwasi Kwarteng and Rehman Chishti

Monday 4th May 2020 Commons Chamber

[Rehman Chishti (Gillingham and Rainham) (Con)]

What steps his Department is taking to support businesses during the covid-19 outbreak.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

My Department is supporting businesses through the coronavirus business interruption loan schemes. In addition to those programmes, we are providing grants for small businesses linked to their business rate status, and we are scrapping business rates this year for those in the hospitality, retail and leisure sectors. We have also set up a package of support that will offer £1.25 billion for high-growth firms, and today we are launching a scheme providing bounce-back loans of up to £50,000 to small businesses.

--- Later in debate ---

[Kwasi Kwarteng]

We have recognised that there are businesses, particularly in shared workspaces, with relatively high fixed costs related to rent payments, for example, and that they have not been able to benefit directly from the grants. I know that my hon. Friend has raised the issue with my Department; as a result of his lobbying, on Friday my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy announced additional funding to local authorities administering the two grant funds, which will help to support businesses that are currently out of scope. I strongly commend my hon. Friend’s input. Local authorities can now provide grants to small businesses in a variety of shared workspaces.

[Rehman Chishti [V]]

Local businesses in Gillingham and Rainham have asked me to ask the Minister to clarify what help is being given to those self-employed business owners and partners who earn over the £50,000 threshold. Some of those businesses cannot furlough any or some of their staff, and business interruption loans still need to be paid at a later date. Will the Minister clarify what support is available to those who fall into that category?

[Kwasi Kwarteng]

First, I would like to clarify our current position: we have prioritised helping the greatest number of people as quickly as possible, and in order to target that support at those most in need, the Government have chosen to cap the self-employment income support scheme. Those who are not able to access the scheme may be able to access other wide-ranging measures that the Government are providing, which are designed to support businesses across all sectors during these difficult times. I am very happy for my hon. Friend to engage with the Department and me on the issue.