Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 7th July 2020 Commons Chamber

[Rishi Sunak]

My right hon. Friend the Chief Secretary to the Treasury is in constant dialogue with his counterpart, the Finance Minister in Scotland, on these issues, but the people of Scotland are able to benefit from the strong measures that we put in place for the entire United Kingdom. Whether it be our loan schemes or, indeed, our furlough scheme, everyone in every part of this country is able to benefit.

[Mr Speaker]

I call the Chairman of the Select Committee, Mel Stride.

[Mel Stride (Central Devon) (Con) [V]]

Guidance has recently appeared on Her Majesty’s Revenue and Customs website that suggests that those who take covid-19 tests, as provided by their employer, will have to treat the cost of those tests as a taxable benefit in kind, which is very unfortunate, particularly in respect of those frontline workers who may be involved. Will the Chancellor look into this matter, please, as a matter of urgency?

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[John Glen]

My hon. Friend makes a very good point and case for her constituency. As the Prime Minister set out last week, we will double down on levelling up and give everyone growing up in this country the opportunity that they need. The Prime Minister announced the acceleration of £96 million of investment from the towns fund, including nearly £13 million on kick-start activity in the west midlands.

[Mr Speaker]

Order. May I just say that the Members not reached are pretty upset at others taking too long? They were desperate to get in, but there we are. I am sorry about that.

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[Rishi Sunak]

These young people have absolutely not been forgotten, and we remain indebted to them for their dynamism in helping to power our recovery. I am delighted that our start-up loans scheme has recently been expanded and is able to provide cash loans to those budding entrepreneurs in her constituency and others. I urge them to have a look at it to see whether it will help fund their plans.

[Mr Speaker]

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 am suspending the House for five minutes.

Economic Outlook and Furlough Scheme Changes

Lindsay Hoyle Excerpts

Tuesday 16th June 2020 Commons Chamber

[Jesse Norman]

I am very grateful to my right hon. Friend the Chairman of the Treasury Committee both for what he says today and for his report. He will know, and he took considerable evidence on, the constraints that the Government were under in bringing the different schemes into play. I am the last person to decry the energy and the effectiveness either of the businesses that have been supported by the job retention scheme or the self-employed people and businesses that have been supported by the self-employed scheme. Of course, we will take very carefully into consideration the report that he gives, and any positive and constructive suggestions that are contained in that report about how we can improve matters, and we continue to review the situation within the Treasury.

[Mr Speaker]

We now come to the SNP spokesperson, Alison Thewliss, with one minute.

[Alison Thewliss (Glasgow Central) (SNP)]

I thank the Minister for the comments he has made. While the support under the schemes, including the coronavirus job retention scheme, is welcome, many of the comments I made on 17 March and 27 April about those who have not been supported still stand. The Treasury Committee would agree that the 1 million who have been left out of this support have been left out of support because of the Government’s own choice—the Government have decided not to support these people—and further issues remain about maternity, the derisory 26p extra given to refugees and those with no recourse to public funds.

The Cabinet Secretary for Economy, Fair Work and Culture, Fiona Hyslop, has written to the Government, identifying tourism, arts and culture, oil and gas, childcare, retail, and rural and island communities as being particularly at risk, so will the Minister now accept that winding up the furlough scheme and putting the costs on to employers is a significant risk and will put people out of jobs? Will he extend it beyond October for sectors that are particularly pressed? Will he look at extending the self-employed support scheme, as many of those people will still require support on an ongoing basis because the work they did is no longer there? Will he look at VAT cuts to tourism and hospitality, which will support those sectors that have seen so much pressure and get them back on their feet at a time when they are really struggling? Lastly, does he agree with Lord Forsyth that there will be a tsunami of job losses, with 3 million people left without work?

[Richard Graham (Gloucester) (Con)]

Getting skills is the key to employment opportunities for the young. Both the Prime Minister and the Chancellor have made encouraging noises about recognising the importance of apprenticeships. I propose that the Government shoulder the entire costs of the first year of all new apprenticeships awarded this autumn—[Interruption.]

[Mr Speaker]

Order. The two Members—the hon. Member for Monmouth (David T. C. Davies) and the hon. Member for Aldershot (Leo Docherty)—cannot stand together. Richard Graham, please start again.

[Richard Graham]

I will start again. Skills are the key to employment opportunities for the young. Both the Prime Minister and the Chancellor have made encouraging noises about recognising the role that apprenticeships can play in that. My proposal is that the Government shoulder the entire first-year costs of all new apprenticeships awarded this autumn. The key point is that further education colleges, other trainers and businesses need to be able to plan ahead so that they can market those apprenticeships. Will my right hon. Friend today give some reassurance and commitment on the support the Government might give apprentices, so that bounce-back Britain’s new apprentices know there are lots of opportunities ahead?

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[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD) [V]]

[Inaudible.]

[Mr Speaker]

Unfortunately, Jamie Stone is not audible, so I call Sir Graham Brady.

[Sir Graham Brady (Altrincham and Sale West) (Con)]

As businesses get back to work, there is a cap on the number of employees who can be furloughed. Would it not make more sense to cap the number of hours or the total cost to the Treasury for each firm instead?

[Jesse Norman]

I thank my hon. Friend for his question. Let me reflect upon it.

[Mr Speaker]

We will try again with Jamie Stone.

[Jamie Stone]

Further to the previous questions, when the highlands tourism industry eventually reopens, it is likely that very few businesses will make enough money to see them through the dark winter months. In the spirit of the Minister’s previous answers, would he agree to meet me to discuss how the furlough scheme and other support schemes can be fine-tuned to make sure that those businesses survive to next year?

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[Jesse Norman]

Tech hubs in Sevenoaks are my regular reflection; I thank my hon. Friend very much for her question. Of course, she is absolutely right. As we think about a more sustainable, greener and more productive economy, we need to be thinking about how our whole industrial strategy and posture will change, and I have no doubt that it will involve continued investment and support for technology in all its manifestations across the UK.

[Mr Speaker]

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 will now suspend the House for five minutes.

Future Relationship with the EU

Lindsay Hoyle Excerpts

Tuesday 9th June 2020 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]]

World trade is forecast to decline by up to a third in 2020 due to the coronavirus pandemic, and that could encourage a move to more protectionist trade policies globally. Given that context, why does the Minister think it is a good idea to rush through major changes to the UK’s trading relationship with the EU, when businesses want more time to recover from the economic shock of coronavirus and avoid a no-deal scenario?

[Mr Speaker]

Minister, are you all right with that?

[Penny Mordaunt]

The hon. Lady was cutting out, but I think I have got the gist.

We believe in free trade and do not want protectionist practices, not just because that is in our interests, but because we believe it is in the interests of every nation on earth. I assure her that one reason why we do not want to extend the transition period and we want to conclude the negotiations swiftly is to give businesses and her constituents time to prepare before the end of the year. Our approach to that, on our borders and on many other aspects, is going to be extremely pragmatic and sensible, and once business hears more about it, I think it will be reassured.

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[Penny Mordaunt]

I can give my hon. Friend that reassurance. We want a separate fisheries framework that reflects our rights in international law. Our requests are simple, reasonable and straightforward. We want the EU to recognise those rights, recognise us as a sovereign equal, and come to the negotiating table with renewed vigour to ensure that we can get that agreement and a deal.

[Mr Speaker]

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 am now suspending the House for three minutes.

Public Health England Review: Covid-19 Disparities

Lindsay Hoyle Excerpts

Thursday 4th June 2020 Commons Chamber

[Kemi Badenoch]

Absolutely. We do welcome that. It is very heartening, as I said earlier, to see that communities all across the country are not just saying, but showing, how much we value the contribution that black and minority ethnic workers—key workers in particular—provide to our society.

[Mr Speaker]

Lloyd Russell-Moyle—not here, so I call Jane Stevenson.

[Jane Stevenson (Wolverhampton North East) (Con)]

I am a very proud Wulfrunian and I am proud that many of my fellow Wulfrunians have roots all over the world. Does the Minister agree that people are now concerned about this report, and that we need to keep pushing hand-washing and social distancing? Does she also agree that it is up to Members in this place to set an example to the BAME communities?

Covid-19: Economic Package

Lindsay Hoyle Excerpts

Tuesday 12th May 2020 Commons Chamber

[The Chancellor of the Exchequer (Rishi Sunak)]

Thank you, Mr Speaker, for your warm wishes.

This Government’s plan is one of the most comprehensive anywhere in the world. We have provided billions of pounds of cash grants, tax cuts and loans for over 1 million businesses, tens of billions of pounds of deferred taxes, income protection for millions of the self-employed, and a strengthened safety net to protect millions of our most vulnerable people. These schemes speak to my and this Conservative Government’s values. We believe in the dignity of work, and we are doing everything we can to protect people currently unable to work.

Yesterday my right hon. Friend the Prime Minister set out our plan for the next phase of the public health response, and today I can confirm the next stage of our job retention scheme. This scheme has been a world-leading economic intervention, supporting livelihoods and protecting futures. Seven and a half million jobs have been furloughed—jobs we could have lost if we had not acted—and nearly 1 million businesses supported who could have closed shop for good.

As we reopen the economy, we will need to support people back to work. We will do so in a measured way. I can announce today that the job retention scheme will be extended for four months, until the end of October. By that point, we will have provided eight months of support to British people and businesses. Until the end of July, there will be no changes whatsoever, from August to October the scheme will continue for all sectors and regions of the UK, but with greater flexibility to support the transition back to work. Employers currently using the scheme will be able to bring furloughed employees back part time. We will ask employers to start sharing with the Government the cost of paying people’s salaries.

Full details will follow by the end of May, but I want to assure people today of one thing that will not change: workers will, through the combined efforts of the Government and employers, continue to receive the same level of overall support as they do now, at 80% of their current salary, up to £2,500 a month.

I am extending the scheme because I will not give up on the people who rely on it. Our message today is simple. We stood behind Britain’s workers and businesses as we came into this crisis and we will stand behind them as we come through the other side.

[Mr Speaker]

I now call Anneliese Dodds, who is speaking virtually. I ask her to speak for no more than two minutes.

[Anneliese Dodds]

Thank you, Mr Speaker, for granting this urgent question. I would also like to wish the Chancellor many happy returns.

As a constructive Opposition, we want to work with the Government to ensure that people’s jobs and incomes are protected and the furlough scheme is a critical element of that. Many of the more than 6 million people who are currently furloughed were taken aback by comments made in the media by Government spokespeople suggesting that, for example, people needed to be weaned off an addiction to the scheme. There were many intimations that changes might have been announced to that scheme by the Chancellor, potentially in the media, without the opportunity for proper scrutiny.

I have only heard about these changes in the last few seconds. We will look at them very carefully, but there are some critical principles that the Chancellor surely must follow as he redesigns the scheme.

First, we must acknowledge that people did not want to be furloughed. It occurred through no choice of their own and through following the Government’s advice about the closure of sectors. It is critically important that they are not penalised for that choice.

I welcome the flexibility mentioned. We have asked for that repeatedly; it applies in many other countries. It has been a long time coming, but I welcome the fact that it is occurring now.

That flexibility includes an employer contribution, so the Chancellor needs to provide more information about that employer contribution now. He also surely needs to provide more information about alternatives to the scheme. Other countries have job creation, training schemes and redeployment schemes. We do not have those yet. Will the Chancellor work with me, trade unions, businesses, local authorities and further and higher education institutions to create the support that is so desperately needed?

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[Rishi Sunak]

Like my hon. Friend the Member for Bracknell (James Sunderland), my right hon. Friend the Member for Chesham and Amersham (Dame Cheryl Gillan) is right to advocate for and support her constituents employed by the airline industry, and she is right to urge employers to do the right thing at this difficult time. The Government have provided considerable support to companies to help them get through this crisis, and she knows what will benefit her constituents. I will continue to support her in those efforts to make sure that we can protect as many of those jobs as possible.

[Mr Speaker]

We cross over into Wales with Kevin Brennan.

[Kevin Brennan (Cardiff West) (Lab) [V]]

Prynhawn da, Mr Speaker. The Chancellor has said that he is doing everything he can, but has he seen the New Starter Justice campaign for people who started or were due to start a new job after 28 February and are still cut adrift from any help from the Chancellor and his schemes? Why has he thrown this particular group of hard-working British people under the bus?

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[Rishi Sunak]

I thank my hon. Friend for his advice as we looked to design and improve our lending scheme. I very much value his direct links with business and his relaying that to me. If you will allow me Mr Speaker, I can update him and the House on the number of loans that have now been approved. I am pleased to say that more than a quarter of a million bounce-back loans have been approved—267,000—with over £8 billion of capital benefiting small and medium-sized companies up and down the UK. On top of that, 35,000 CBILS loans worth more than £6 billion have now been put out. Hundreds of thousands of businesses are benefiting from the loan schemes that my hon. Friend helped to implement, ensuring that they worked well and quickly for businesses.

[Mr Speaker]

We go over to the wonder of Lancashire, with Rosie Cooper.

[Rosie Cooper (West Lancashire) (Lab) [V]]

As a result of the loss of income through both fundraising and small service charges, many small and local charities will be struggling financially despite being heavily involved and active in the covid-19 response and in supporting constituents. When will the Chancellor issue guidance to local authorities on providing grants to charities that are in receipt of local charitable rate relief but have up to now been excluded from securing the £10,000 grants from the small business grants fund?

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[David Johnston (Wantage) (Con) [V]]

I support the Chancellor’s bold move to extend the furlough scheme to October—[Inaudible.]

[Mr Speaker]

Order. Unfortunately we have to move on to the next question. I call Judith Cummins.

[Judith Cummins (Bradford South) (Lab) [V]]

Has the Treasury made an assessment of how many employers are currently topping up the wages of furloughed workers to full pay? If the Government reduce the amount they are contributing, many employers may struggle to top up wages. What will the Government do if employers cannot top up wages?

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[Rishi Sunak]

My heart goes out to the family of the hon. Gentleman’s constituent for what they have suffered. They, like many others up and down the country, are losing loved ones who are serving on the frontline. They deserve nothing but our admiration, respect and gratitude. I know that my right hon. Friend the Health Secretary has put in place a scheme to help those families who have lost loved ones during this crisis.

[Mr Speaker]

Let us head up to Staffordshire to Aaron Bell.

[Aaron Bell (Newcastle-under-Lyme) (Con) [V]]

I thank the Chancellor for all the schemes that he has introduced so far. In particular, I welcome the extension of the job retention scheme today. I wonder whether he is willing to look at a couple of aspects of the other schemes. There are two schemes in particular that would benefit from the introduction of a taper as, currently, there are cliff edges in support for both business grants and the self-employed income support scheme. It means that, in the case of two people in broadly equivalent positions, one could be entitled to support and one not. Would he be willing at least to consider the idea of a taper with these schemes?

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[Rishi Sunak]

I thank my hon. Friend for her support. I think I am safe in saying that the guidance will be issued imminently. Of course there will be some broad guidelines on whom we think that support should be targeted at, but of course local authorities will have the ultimate discretion.

[Mr Speaker]

Returning to the north-west, let us hear from Andrew Gwynne.

[Andrew Gwynne (Denton and Reddish) (Lab) [V]]

Although I welcome the announcement on furlough, the Chancellor knows that the Government’s covid response would have completely stalled without local government, yet our councils are now financially on the brink. The extra funding does not cover all the costs, which is something that Ministers promised. Will he ensure that our councils are fully reimbursed for all covid-related costs and lost income and protect the sector that has protected us?

[Rishi Sunak]

In a moment of nostalgia, let me say that the hon. Gentleman and I have a shared passion for local government and an admiration for the work that they do, and I know that he will remain an advocate of theirs. They have been provided with more than £3 billion of extra support. Of course, we are in constant dialogue with local government, whether in social care or others, to ensure that they get the financial resources that they need.

[Mr Speaker]

Let us go over to Derbyshire now to Nigel Mills.

[Nigel Mills (Amber Valley) (Con) [V]]

I thank the Chancellor for his announcement today, which is exactly what Amber Valley businesses have been asking for. Is there any way he can allow them to bring back some employees part-time, earlier than his extension, so that they can perhaps reopen their businesses next month rather than having to wait until a later date?

Covid-19

Lindsay Hoyle Excerpts

Monday 11th May 2020 Commons Chamber

[Mr Speaker]

We now come to the general debate on covid-19. I call Minister Penny Mordaunt to move the motion. I ask her to speak for no more than 12 minutes.

Finance Bill

Lindsay Hoyle Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution
Monday 27th April 2020 Commons Chamber

[The Financial Secretary to the Treasury (Jesse Norman)]

I beg to move, That the Bill be now read a Second time.

I congratulate the new shadow Chancellor and her shadow Treasury team on their appointments. Six weeks ago, on 11 March, this House assembled to hear my right hon. Friend the Chancellor deliver his Budget speech. How long ago that seems now when every day feels like a decade. A Budget statement is a central part of our democracy; indeed, it is at the very heart of a parliamentary tradition of accountability for taxation that goes back to the 13th century. It is deeply sobering to reflect that that 11 March moment might be the last great parliamentary occasion we have in this Chamber for some time to come.

Truly, we know better now. We live in a disenchanted world, a world of self-isolation, of social distancing, of shielding, of lockdown. In the Treasury and across Government as a whole we have worked around the clock since then to respond to the extraordinary challenges posed by the coronavirus to people’s lives and livelihoods. The same has been true in this Palace of Westminster. I know that I speak for all my colleagues in saying that I have the greatest respect for the work that you, Mr Speaker, and so many others, including parliamentarians across this House, have done to prevent covid-19 from becoming a threat to our democracy itself. I pay special tribute to all the Clerks and staff of this House of Commons and of the Palace of Westminster for working so quickly and creatively to adapt to this new reality and for their skill in drawing on the flexibility and resilience of our uncodified constitution to create a virtual Parliament.

When this Chamber was bombed and destroyed on the night of Saturday 10 May 1941, with the fires raging, the roof fallen in and the Lobbies and corridors gutted, it was decided that the Commons should sit immediately in Church House. Extraordinary measures were undertaken at great speed to transfer proceedings to the new location. The Commons rarely sat on Mondays, so it duly reconvened in the normal way on Tuesday 13 May, but it did so in Church House. There were oral questions to the Secretary of State for War, including on officers’ outfits and the collection of swill and vegetable waste from military units, followed by a full Order Paper of business and, at the end, a short statement from the Prime Minister in which he reported that the old Chamber was damaged beyond immediate repair and that preparations were already under way for a move to a further location, if that should be necessary. Thus the biggest and the worst raid of the blitz resulted in the loss of not one single day—indeed, not one single minute—of sitting time for Parliament. It is a moment of which this country can be intensely proud.

Why so much determination and so much speed? It was so that, as Churchill said:

“hon. Members may be reassured that the work of our Parliamentary institutions will not be interrupted by enemy action”.—[Official Report, 13 May 1941; Vol. 371, c. 1086.]

It was so British democracy should not be thought to have been destroyed amid the burning ruins of the Commons Chamber, and so that the great thread of public scrutiny and parliamentary accountability that gives legitimacy and authority to our Government should not be broken. So it is again today, Mr Speaker. For that, we are, and we will always be, profoundly grateful. I hope that we shall soon return to the close combat of political business, whether that be the intimate interrogation of the Chamber, the camaraderie of the Lobbies or the noise and clamour of a full House packed to the rafters with MPs, press and public looking on, all fully intent on our national political business; the House of Commons as the cockpit of the nation.

Here again, history can be our guide. When the Chamber was rebuilt, special care was taken to make it, as it had been, too small for the number of Members. That was at the specific insistence of Churchill. In his words, the essence of good House of Commons speaking is the “conversational style”. This requires a

“fairly small space, and there should be on great occasions a sense of crowd and urgency…a sense that great matters are being decided, there and then, by the House”.

Not for Churchill the vast, empty hall of Deputies, the amphitheatre, or what he called “Harangues from a rostrum”. Without that collective sense of crowd and urgency and the ever-shifting energy of the House in action, we lose something vital.

Mr Speaker, I ask you this: can we not also gain from this great virtual experiment? Through new forms of questioning and calmer, more dispassionate cross-examination of Government, may we not find glimmers of new possibility amid the present gloom? I believe that we can. The significance of today’s debate lies not just in this Finance Bill, important though it is; it marks a new legislative beginning for Parliament. As we go forward together, I hope that we in this House can restore not merely our old ways, but what was best in them, and use this moment to add, to develop, to reform and to make them better still.

When my right hon. Friend the Chancellor addressed the House on 11 March, he announced a Budget focused on delivering the Government’s manifesto commitments from the general election last year. He did not only that; he also set out and carefully explained the reasons for a very ambitious and wide-ranging set of measures designed to tackle the coronavirus head-on, to buttress our frontline services and to support people, families and businesses affected by the pandemic.

Since then the Government have gone much further still. Indeed, we have announced what we believe to be the most comprehensive and far-reaching economic response to covid-19 in the developed world, and Ministers and public servants across Government have worked to deliver it. Among its many different packages, that response includes a job retention scheme, which guarantees 80% of the wages of furloughed workers, and which has been conceived, developed and launched by Her Majesty’s Revenue and Customs in just a few weeks.

Alongside the job retention scheme is a similarly generous scheme aimed at supporting the self-employed for 80% of taxable trading profits up to £50,000. This covers some 95% of those who are mainly self-employed, including cleaners, taxi drivers, plumbers, musicians, journalists, electricians, childminders and many others. Businesses can also benefit from more than £300 billion-worth of Government-backed loans, numerous tax cuts and grants, with a business rates holiday for the worst-affected sectors of the economy. There has also been a further package of measures aimed at the charitable sector.

These are unprecedented measures for unprecedented times. The impact of the coronavirus falls not only on businesses, but directly on the well-being of some of the most vulnerable people in our society, whom the Government are determined to protect. For that reason, the Government have raised by £1,000 the universal credit standard allowance and working tax credit basic element for a year. Almost a billion pounds has been allocated so that the local housing allowance can cover at least 30% of market rent, and the Government have offered vouchers or meals at home for children who would otherwise be eligible for free school meals.

This Bill goes beyond the immediate response to covid-19 by delivering the Government’s manifesto commitment to make the tax system fairer and more proportionate. For example, care leavers who start apprenticeships will pay no income tax on bursary payments that they receive. I am delighted to say to recipients of payments under the Windrush compensation scheme and the troubles permanent disablement payment scheme that those payments will be exempt from income, inheritance and capital gains tax, and inheritance tax will not be collected on Kindertransport fund payments.

Taxes are rarely popular or straightforward, but they are necessary to support our public services. Now, more than ever, the Government have a duty to ensure that the rules are applied correctly. Last month, my right hon. Friend the Chief Secretary to the Treasury announced that, in the light of covid-19, the Government will delay the introduction of reforms to the off-payroll working rules in order to give businesses more time to adapt. However, he was clear that the Government remain fully committed to introducing these reforms to ensure that people working like employees but through their own limited companies pay broadly the same tax as individuals who are employed directly. That has not changed, and the Government will introduce an amendment to the Bill in due course to legislate for a new commencement date of 6 April 2021. The Government will use the additional time to commission further external research into the long-term effects of the reforms in the public sector, with the intention that that research will be available before the reforms come into effect in the private sector in April 2021.

Meanwhile, this Bill implements the recommendations of Sir Amyas Morse’s independent review of the loan charge. It will mean that the loan charge no longer applies to loans entered into before 9 December 2010, which is the point at which Sir Amyas found that the law put beyond doubt the fact that disguised remuneration schemes were a form of tax avoidance. The Bill also brings forward legislation to repay taxpayers who voluntarily settled for years that are no longer in scope, while those still able to pay will be able to spread their loan balance over three tax years to suit their finances.

The Budget also included changes to help businesses to prosper for years to come. This Bill will implement the Government’s manifesto commitment to increase the research and development expenditure credit rates from 12% to 13% in order to help drive growth and productivity across the UK, and to continue to support this country’s proud history of innovation. It also raises the structures and buildings allowance rate from 2% to 3%, which should help to stimulate long-term capital investment in the United Kingdom by strengthening the business case for investment in shops, factories and agricultural buildings. Those changes apply nationwide, underlining the fact that, even in these times of uncertainty, the Government are seeking to level up investment and opportunity right across the whole United Kingdom.

The Government have made successive cuts to the rate of corporation tax since 2010 and we now have the lowest headline rate in the G20. That has helped to create a corporate tax system that supports British businesses, boosts economic growth and strengthens the UK’s pull for inward investment.

However, the extra benefits of lowering corporation tax rates still further must be balanced against other objectives, such as funding the NHS and the public services on which we all rely. That is why the Chancellor announced that the Government will not cut the corporation tax rate further this year, but instead will maintain it at 19%, in line with their manifesto commitment.

Likewise, while the Government are committed to encouraging entrepreneurial activity, the evidence indicates that entrepreneurs’ relief in its current form is neither effective in stimulating new business growth nor good value for money. By reducing the lifetime limit from £10 million to £1 million, we are returning the relief to its original purpose while continuing to promote and reward enterprise.

Finally, following an extensive period of consultation, the Bill will implement the digital services tax. Digital businesses providing search engines, social media platforms and online marketplaces derive significant value from their UK users, but current international corporate tax rules mean that that value is not reflected in the level of UK tax they pay. Setting a tax on revenues from those digital services at a rate of 2% will make the system fairer and should raise up to £2 billion over the next five years, but the Government’s ultimate goal is to secure a long-term global solution. We are working with international partners through the Organisation for Economic Co-operation and Development to agree a way forward.

Covid-19 is the most pressing challenge for the country—and, indeed, the world—at the moment, but it is by no means the only one. Notwithstanding our intense focus on tackling the pandemic, the Government have not lost sight of longer-term public concerns, notably the need for the UK to move to a greener and more sustainable economy in the years ahead. Now that we have left the European Union and as we prepare to leave the EU emissions trading system, this Bill introduces legislation for both a charging power to create a UK emissions trading system, and a carbon emissions tax.

This twin-track approach is designed to ensure that, whatever the circumstances, the UK will have an effective carbon pricing regime in place. In the Budget, the Chancellor also revealed key elements of the plastic packaging tax, which should significantly increase the use of recycled materials in packaging. This Bill allows preparatory spending ahead of its introduction.

The Bill will also encourage the uptake of zero-emission vehicles by removing them from the vehicle excise duty expensive car supplement, which will mean that employers and employees pay no tax on zero-emission company cars in 2020-21. The United Kingdom has led the world in introducing legally binding carbon emissions reduction targets; these measures underline once again how serious the Government are about meeting those targets.

My right hon. Friend the Prime Minister has made it quite clear that we will do what it takes to support our public services and key workers as they respond to this pandemic, and to safeguard jobs and businesses so that our economy can bounce back as quickly as possible. Yet we must also look to the future. The advent of a virtual Parliament is a chance to chart new territory, and this Bill is a first step on that journey.

The Bill also redeems the manifesto promises of the last election. It points the way to a fairer tax system and a greener and more sustainable future. With the support of Members from across the House, and as we look beyond lockdown, it gives us all an opportunity to cement the United Kingdom’s place as one of the most innovative, exciting and enterprising nations in the world. For all those reasons, I commend this Bill to the House.

[Mr Speaker]

I call Anneliese Dodds, who is asked to speak for no more than 15 minutes.

The Economy

Lindsay Hoyle Excerpts

Monday 27th April 2020 Commons Chamber

[The Chancellor of the Exchequer (Rishi Sunak)]

Thank you, Mr Speaker, for giving me the opportunity to update the House on our economic response to the coronavirus. Let me say at the outset that I am grateful to Members from all parts of this House, including the hon. Member for Oxford East (Anneliese Dodds), the new shadow Chancellor, for their contributions to this debate.

We should be in no doubt about the seriousness of the economic situation. The Office for Budget Responsibility has published a scenario showing that the coronavirus will have very significant impacts, both at home and in the global economy. More than 1.5 million new claims have been made to universal credit, over 4 million jobs have now been furloughed, and survey evidence suggests that a quarter of businesses have stopped trading. These are already tough times and there will be more to come.

Although our interventions have saved millions of jobs and businesses, we cannot save every job and every business. I understand and share people’s anxiety, but right now the most important thing that we can do to protect our economy is to protect the health of our people. As my right hon. Friend the Prime Minister said this morning, we are making progress. We are beginning to turn the tide but, if we lose control of the virus again, we risk seeing a second spike, which we all want to avoid. The goal of our economic strategy is to provide a bridge over what will be a sharp and significant crisis by keeping as many people as possible in their existing jobs, supporting viable businesses to stay afloat and protecting the incomes of the most vulnerable. In other words, it is to maintain the productive capacity of the British economy, so that, once we are able to refine the public health restrictions, we can as quickly as possible get people back to work, businesses reopening and the self-employed trading again.

The Office for Budget Responsibility has been clear that, if we had not taken the actions that we have, the situation would be much worse. The International Monetary Fund has said that our approach has been “aggressive” and “right”. Taken together, I believe our response has been one of the most comprehensive of any country anywhere in the world. Working closely with the Bank of England, business groups, trades unions, banks, charities and many others around the country, we have developed a plan to protect public services, people and businesses.

Let me address each of those areas in turn. Public services such as the NHS are on the frontline of the fight against coronavirus. I repeat today that, whatever resources our NHS needs, it will get. At the Budget in March, I announced a coronavirus emergency response fund, initially allocating £5 billion. We have now provided more than three times that initial amount, with the NHS and public services receiving £16 billion so far.

We are also providing extensive support for people’s jobs and incomes. Our most important and far-reaching policy is the coronavirus jobs retention scheme to keep people in employment. The scheme launched on schedule last week, and I am pleased to report that the first grants have just been paid. Around half a million employers have already applied for help to pay the wages of over 4 million furloughed jobs—jobs that might otherwise have been lost.

Her Majesty’s Revenue and Customs is also on track to deliver the self-employed income support scheme, as promised in early June, and we will publish detailed guidance this week. Alongside those new interventions, we have strengthened our existing safety net with increases to universal credit, the local housing allowance and statutory sick pay. We have reinforced our social fabric, too, with £750 million for the charity sector.

Of course, the best way to support people is to protect their jobs, and that means supporting the businesses that employ them. Our plan to help businesses means the following: almost half of all business properties in England will pay no business rates this year; almost 1 million business premises can now receive cash grants of up to £10,000 or £25,000; and more than 2 million businesses have been offered a VAT deferral, saving them an average of £30,000.

Another 2.7 million people will be able to defer their self-assessment payments; almost 60,000 people and businesses have put “time to pay” arrangements in place with HMRC; up to 2 million employers will be able to access the statutory sick pay rebate, up to £48,000 per firm; more than £14 billion of lending has been issued through the Bank of England’s financing facility and more than 20,000 coronavirus business interruption loans have now been approved. Of course, all that is on top of our furlough scheme, with payments now arriving.

Taken together, our plans are protecting millions of people and businesses across our country, through a set of interventions in the economy on a scale that we have never attempted before, and they are working. However, I know that some small businesses are still struggling to gain access to credit. They are, in many ways, the businesses most exposed to the impact of the coronavirus, and often find it harder to access credit in the first place. If we want to benefit from their dynamism and entrepreneurial spirit as we recover our economy, they will need extra support to get through this crisis. Some businesses will not want to take on more debt, which is why our focus has been on cash grants, tax cuts and tax deferrals, but for others, loans will be part of the answer.

Today we are announcing a new micro-loans scheme, providing a simple, quick, easy solution for those in need of smaller loans. Businesses will be able to apply for new bounce-back loans, for 25% of their turnover, up to a maximum of £50,000, with the Government paying the interest for the first 12 months. I and the Economic Secretary to the Treasury have been in close talks with the banks, and I am pleased to say that those loans will be available from 9 am next Monday.

There will be no forward-looking test of business liability, and no complex eligibility criteria; there will be just a simple, quick, standard form for businesses to fill in. For most firms, loans should arrive within 24 hours of approval. I have decided that, for this specific scheme, the Government will support lending by guaranteeing to the lender 100% of the loan.

Let me address that point directly. I have heard calls for the Government to underwrite all our loan schemes with 100% guarantees, but I remain unconvinced by the case for doing that universally. We should not ask ordinary taxpayers of today and tomorrow to bear the entire risk of lending almost unlimited sums to businesses that in some cases may have very little prospect of paying those loans back, and not necessarily because of the impact of the coronavirus. I do not think it is appropriate to provide 100% guarantees on all of our schemes. Instead, these new bounce-back loans carefully target that extraordinary level of state support at those who need it most. The £50,000 cap balances the risk to the taxpayer with the need to support our smallest businesses.

Right now, the most important thing for the health of our economy is the health of our people. We are making progress in our fight against the virus, but we are not there yet. Our strategy is to protect people and businesses through this crisis, by backing our public services and NHS with increased funding, strengthening our safety net to support those most in need, and supporting people to stay in work and keep their businesses going. Our response is comprehensive, coherent and co-ordinated. It is, I believe, the right approach. I hope I can continue to rely on the support and advice of all right hon. and hon. Members as I commend this statement to the House.

[Mr Speaker]

I now welcome the new shadow Chancellor, Anneliese Dodds, who has five minutes to respond.

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[Mr Speaker]

Who would have thought? I call a virtual Jim Shannon.

[Jim Shannon (Strangford) (DUP) [V]]

Thank you very much, Mr Speaker. I am here virtually, but at a distance.

I thank the Chancellor for all he has done, is doing and will do in the future. Some in the hospitality sector, in particular private bus companies, do not have premises and fall just outside the present small business support scheme. Will the Chancellor agree to extend the scheme? Similarly, the coronavirus bank loan scheme has had 36,000 applications, but only 16,000 have been approved. Will the Chancellor ramp up underwriting cover from 80% to 100%, as other countries have been doing?

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More than two hours having elapsed since the commencement of hybrid scrutiny proceedings, the Speaker brought them to a conclusion (Order, 21 April).

[Mr Speaker]

Order. That concludes scrutiny proceedings for today. I will now suspend the House for 30 minutes to allow Members to safely leave the Chamber and to allow broadcasting colleagues to make the necessary technical changes prior to the start of substantive proceedings.

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[NB: [V] denotes a Member contributing virtually.]

[Mr Speaker]

Welcome to the first substantive proceedings of the House of Commons in hybrid format. As Speaker, I announced last Wednesday that parliamentary privilege applies to all participants in proceedings and the rules and courtesies apply as far as practicable in the same way to all Members, whether participating virtually or here in the Chamber. I remind hon. Members that interventions are not possible and hon. Members present in the Chamber must not give way to other Members in the same position as that is inconsistent with the principle of equality. I advise all hon. Members speaking virtually to use their own timing device to assist them in dealing with speaking limits.

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 24th March 2020 Commons Chamber

[Duncan Baker]

Clearly, we are living through unprecedented times, and I want to say thank you to all the Treasury team for the incredible work they are doing—working throughout the night—to help businesses up and down the country. Many sectors will be hugely impacted by coronavirus, not least my home of North Norfolk. We are now seeing shops being shut on the high street—quite rightly so—and I just want the Minister to consider that they will be hit enormously. When we come out of this pandemic, a 2% or 3% VAT-style tax rise to help high streets would be very well considered and welcome. Let us just remember that our last great leader was Margaret Thatcher, who said that we are a nation of shopkeepers—let us help them.

[Mr Speaker]

Order. I think the hon. Gentleman ought not to take advantage. We are just starting. I think he has got the message.

[Jesse Norman]

I speak for all my colleagues in saying how grateful I am to my hon. Friend for his kind regards and wishes. Of course, all taxes are taken into account and monitored by the Treasury, and will be subject to consideration at future fiscal events. We are living through very unusual times. I hope my hon. Friend understands that the high street, which was under pressure years before the current outbreak, is something we have supported over a period of time, most recently with a comprehensive package of support. He will be aware of the specific measures we have taken to support eligible retail, hospitality and leisure properties.

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[John Glen]

I am very aware of the 1,700 people who work in this area in the right hon. Gentleman’s constituency and across Wales and Scotland. I am also aware that he wrote to the previous Exchequer Secretary, who moved post before he could get a reply. At the moment, renewables are five times more expensive than wind and solar, but the Government will engage in a dialogue with the industry as we look to resolve this and move forward constructively.

[Mr Speaker]

I call Andrew Rosindell. He is not here.

[Paul Bristow (Peterborough) (Con)]

14. What steps he is taking to increase wages for low-paid workers.

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[Rishi Sunak]

The detailed eligibility criteria are online and will be provided by local authorities. The grants of £10,000 are done on a per premise basis for businesses that are in receipt of small business rate relief and rural rate relief. There are larger grants for those in the retail, leisure and hospitality sector of up to £25,000. The Business Secretary has written already to local authorities, which are, as we speak, writing to businesses that are eligible for those grants to seek their bank details and start making cash payments as soon as is practically possible.

[Mr Speaker]

Before we move on to the urgent question, I should say that I am bothered that Members are rather close in some areas of the Chamber. If it is possible to spread out, I would be very grateful.

Self-employed Persons: Financial Support

Lindsay Hoyle Excerpts

Tuesday 24th March 2020 Commons Chamber

[The Chief Secretary to the Treasury (Steve Barclay)]

We know that many self-employed people are in real distress, but we are working urgently to address this problem, and I say to the self-employed: we have not forgotten you—help is coming. But the policy and delivery are complex, and we cannot and should not rush to announce a scheme that gives rise to more questions than it answers. The Chancellor has held meetings this morning with representatives of the self-employed and will continue to meet them this afternoon.

It is important to remember that covid-19 is an urgent challenge to our entire economy, affecting workers of all types. It is essential that we respond swiftly, so that people can keep their jobs and businesses can carry on. That is the basis of our coherent, co-ordinated and comprehensive plan. It is a plan that gives those on the frontline the tools they need to tackle the virus, with all the support the NHS needs, backed up by an initial £5 billion fund for public services. It is a plan that puts a shoulder behind business with a statutory sick pay relief package for small and medium-sized enterprises, business rates holidays for all retail hospitality, leisure and nursery businesses in England, and grant funding for small enterprises, as well as support through Her Majesty’s Revenue and Customs’ time to pay scheme. As of yesterday, businesses with cash-flow concerns are also able to access the coronavirus business interruption loan scheme, offering up to £5 million for SMEs through the British Business Bank. For larger firms—[Interruption.]

[Mr Speaker]

Order. It might be easier if Members pass notes down the line, rather than going round and speaking to everybody.

[Steve Barclay]

The coronavirus business interruption loan scheme, on which Members across the House have raised questions, is now available, offering up to £5 million for SMEs through the British Business Bank. For larger firms, the Bank of England is providing a new facility to help support liquidity.

I urge all Members of the House to continue speaking—as I know many are doing—to the business leaders in their constituencies and ensure they are aware that they are not alone and that help is coming. In this House, we are all standing behind business and everyone who works in it. To encourage businesses to retain staff, we are deferring VAT, and my right hon. Friend the Chancellor has announced the job retention scheme to facilitate that.

Taken together, this is a huge programme of support, and we will keep thousands of workers in jobs, but we know that there are thousands of self-employed people who have been wondering what the future holds for them. My right hon. Friend the Chancellor has already set out a range of measures in support. Sole traders and freelancers will be able to access the business interruption loan scheme as long as activity is channelled through a business account. We are also removing the minimum income floor for the self-employed workers affected by coronavirus so that they too can access universal credit in full. That is not only the standard allowance, but a wider package of support for those with children, disabilities or, indeed, housing needs. At the same time, the next self-assessment income tax payments will be deferred until January 2021, helping those who have set money aside for those payments with immediate cash flow. That means there is a package on tax, on loans and, more widely, through universal credit, to support those with that safety net.

Let me reassure everyone in this House and the self-employed people they represent that further help is indeed coming, but we have to make sure we get this right and that we target the right support to those who are most in need. The Chancellor will provide a further update on support for the self-employed in the coming days.

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[Several hon. Members rose—]

[Mr Speaker]

Order. I am aiming for this to last until about 1.20 pm.

[Steve Barclay]

May I first welcome the constructive tone that the right hon. Gentleman has struck? His offer to come to the Treasury might contravene some of the recent social distancing requirements, but I appreciate the spirit in which it was made. He is right that we need to move at pace and to work together. That is why my right hon. Friend the Chancellor was involved in further meetings this morning, as he will be later today, as we work through how to take this forward.

The Chancellor was drawing attention to the complexity of the target population. I think that a number of Members would have concerns, not least as we look to the future, if we were subsidising some very wealthy self-employed people. I take the point that they are not the ones getting in touch with the right hon. Gentleman, but it is important that our approach is mindful of the target population.

The right hon. Gentleman raised the issue of reassurance, which is a legitimate concern, and one shared across the House. I draw the attention of his constituents, and those of colleagues across the House, to the Chancellor’s comments this morning. We are working at pace on this and we recognise the issue being raised. I hope that provides reassurance, certainly in terms of an announcement, although the operation of any solution may take further time, as the Chancellor set out.

Considerable work is being done, but the population is complex. We are looking at the burdens of different delivery mechanisms, whether on the Department for Work and Pensions or local authorities, which have their own staffing pressures because of the number who are ill. That is why we are exercising flexibility in lots of other areas in order to reprioritise resources, but it is important that the scheme is deliverable and mindful of the other challenges we are dealing with.

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[Several hon. Members rose—]

[Mr Speaker]

I am sorry that we have to come to an end. There will be disappointment, but if we had helped each other, nobody would have missed out.