Covid-19: Economy Update

Lindsay Hoyle Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

The hon. Lady is right in saying that support should now be targeted at where it can make the most difference. That is why our approach has evolved through this crisis, and what was universal at the beginning and at the peak of the crisis has now evolved into a more targeted approach. To give one example, a difference between the job support scheme and the old furlough scheme is that now large businesses—precisely the kinds of businesses she mentioned—will not be able to access the job support scheme, especially with its new, more generous terms, unless that business is seeing revenue decline. That sensible change means that support is rightly targeted at smaller and medium-sized businesses that need our help at this difficult time, and not at the large businesses that are not seeing any change to their business model.

[Mr Speaker]

Let us head to Ludlow and Philip Dunne. There is no sound, so I call Naz Shah.

[Naz Shah (Bradford West) (Lab)]

I do not need to tell the Chancellor about the way we are going, with the economy plunging further into a crisis. The biggest thing that businesses in my constituency tell me is that uncertainty is their biggest enemy. We have now been under extra restrictions for more than 150 days. If we go into tier 3, and given that the Chancellor does not want a planned circuit breaker, what support will he give to businesses in my constituency of Bradford West? Importantly, how long should they be prepared for uncertainty?

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[Rishi Sunak]

Yes, I can, and I hope I did, provide that reassurance. For all areas that have been suffering essentially de facto restrictions, as the hon. Gentleman said, we will backdate the grants through to the beginning of August as required, and that will benefit many local businesses in Greater Manchester. I am grateful for the representations I had on this matter from many colleagues around the House, including many of those I mentioned in my statement.

[Mr Speaker]

Let us head up to Yorkshire with Julian Sturdy.

[Julian Sturdy (York Outer) (Con) [V]]

[Inaudible.]

[Mr Speaker]

We will go up to Scotland for the next question, from Neil Gray.

[Neil Gray (Airdrie and Shotts) (SNP) [V]]

It has taken weeks for the Chancellor to tinker with his job support scheme to get it to a better place, as if he was surprised by the impact that the necessary public health restrictions would have; it really prompts the question why he did not just keep furlough. But the big question today is why he did not do anything about making the universal credit £20 per week lifeline permanent and extending it to legacy benefits, which would have disproportionately benefited disabled people at this difficult time.

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[Rishi Sunak]

My hon. Friend is absolutely right, and that is why we have evolved our approach. Whereas earlier in this crisis, when we were facing something that was happening with enormous speed and severity, we erred on the side of being more universal in our approach and acting quickly, obviously, as time has progressed, we can be more targeted—more effective—to root out misuse of these schemes and make sure that support is targeted where it is most needed. As I said, one example of that is all the various new eligibility criteria for the job support scheme, ensuring that large businesses that are not suffering a revenue decline will not be able to access the scheme. There are also conditions around redundancy notices and the ability of large companies to make capital distributions while using the scheme. All those are sensible changes that go to the heart of what my hon. Friend said: we should target our support on those who really need it.

[Mr Speaker]

Let us return to Yorkshire with Julian Sturdy. I think he has got his voice back.

[Julian Sturdy [V]]

Thank you, Mr Speaker—take two. I thank my right hon. Friend for listening to the concerns that have been raised by York’s tourism and hospitality sector and announcing an extensive package of support for areas such as York that have been left in limbo under the tier 2 restrictions. However, does he agree that the best way to support York’s wider economy is to get us back to tier 1 as swiftly as possible? Can he assure me that the support announced today will not be used to justify prolonging additional restrictions for longer than is necessary?

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[Rishi Sunak]

If we are ending on this note, my hon. Friend has made me exceptionally hungry to hear that roll-call of great-sounding restaurants, which I hope I have a chance to visit with him. I can gladly give him that reassurance. We will be backdating the tier 2 grant support to the time that those restrictions were put in place, and I hope that will be of benefit to all the restaurants that he mentioned and many more small businesses in his constituency.

Royal Assent

[Mr Speaker]

I have to notify the House, in accordance with the Royal Assent Act 1967, that Her Majesty has signified her Royal Assent to the following Acts:

Sentencing Act 2020

Extradition (Provisional Arrest) Act 2020.

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I suspend the House for a few minutes.