Economy Update

Debate between Lord Agnew of Oulton and Baroness Warsi

Tuesday 10th November 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

The noble Baroness knows that this Government certainly do not support a universal basic income, but we are very aware of the vulnerability of many self-employed people. We have tried to close as many of the gaps as we can. As I mentioned in my answer to the noble Lord, Lord Bird, we have clarified the criteria in the latest round. The noble Baroness will know that we have made the entitlement more generous and extended it not just to November through until January.

[Baroness Warsi (Con) [V]]

My Lords, I welcome the Government’s decision to provide clarity and stability by extending the furlough scheme to March. I also draw the House’s attention to my entry in the register of interests. Can my noble friend provide some clarity for those businesses that took out coronavirus business interruption loans and bounce-back loans, many of which were taken out around April this year and therefore will be coming up to the anniversary in April next year? Has any thinking been done in government about what will happen to those loans, such as when repayments will start, what rates of interest are likely to be incurred and whether there will be an extension of the interest-free period to enable businesses to stabilise before those payments start?

[Lord Agnew of Oulton (Con)]

No firm decisions on that have been made, other than what was announced a few weeks ago, which was to extend the payment period of the bounce-back loans to 10 years and to confirm that those businesses that took out less than their 25% eligibility up to the £50,000 cap could return to top up to the full amount. We will of course keep under close review how the economy reacts as we come out of this pandemic, as we hope, and how quickly businesses are able to recover from it.