Covid-19: Economic Package

Lord McNicol of West Kilbride Excerpts

Wednesday 13th May 2020 Lords Chamber

[Lord Agnew of Oulton]

My Lords, the newly announced Self-employed Income Support Scheme, which opened today, will be kept open as long as it is needed. That is what we have said all along: we will do what is needed. We need to see how successful it is and how many people it gets to. I am not aware of any advanced thinking on a pay freeze on the public sector or any other measures. As my right honourable friend said yesterday, it is too early for us to be looking at these measures. We need to get through this stage of the crisis. On the noble Baroness’s third question, we have been increasing the number of lenders available on all schemes since they opened. I am sure that this will continue.

[The Deputy Speaker (Lord McNicol of West Kilbride) (Lab)]

I remind all noble Lords to please ask brief questions.

[Lord Marland (Con)]

My Lords, I draw attention to my various business interests listed in the House of Lords register. I start by complimenting the Chancellor and his team. I am sure all noble Lords would like to thank my noble friend the Minister for his tireless efforts throughout this horrendous crisis. The programme of support for business has been far better than that in 2008. The pressure on banks, for example, to perform has been a very good thing and the furlough scheme has been an act of near genius. I also applaud the new scheme for the self-employed, launched today, which the Minister touched on a moment ago. Perhaps he can advise noble Lords of the applications received to date.

I urge caution, however, in announcing an extension to the furlough scheme until October. That will not only cost us £100 billion but will, I am afraid, support many businesses that were ailing before this crisis. I am also aware of a number of profitable and productive businesses that will continue to use it when they have strong enough balance sheets to support their activities without government support. Will the Minister assure us that steps are being taken to prevent malpractice?

--- Later in debate ---

[Lord Agnew of Oulton]

My Lords, my right honourable friend in his Statement yesterday extended the existing terms of the furlough scheme until the end of July. I think we will have better knowledge of the disease and our ability to contain it by then, but I take on board the noble Lord’s comments and I will take them back to my colleagues in the Treasury.

[The Deputy Speaker]

My Lords, the time allotted for the Statement is now up. Today’s Virtual Proceedings are complete and are adjourned. Good night.

Virtual Proceeding adjourned at 8.29 pm.