Oral Answers to Questions

Lucy Powell Excerpts

Tuesday 26th January 2021 Commons Chamber

[Steve Barclay]

It continued throughout; that is just a statement of fact. In terms of the wider package, I would refer the hon. Lady to the fact that the UK Government have provided £280 billion-worth of support and that bodies such as the International Monetary Fund have said that the UK’s economic response has been one of the best examples of co-ordinated action globally. We are able to do that because we are working as one United Kingdom acting together and using the broad shoulders of the UK.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

What recent assessment he has made of the adequacy of financial support schemes for businesses during the covid-19 outbreak.

[Joy Morrissey (Beaconsfield) (Con)]

What fiscal steps his Department is taking to support businesses affected by the covid-19 outbreak.

--- Later in debate ---

[The Chancellor of the Exchequer (Rishi Sunak)]

The Government recognise the significant impact of coronavirus on businesses across every region and nation of the United Kingdom, and that is why we have put in place an unprecedented series of measures to provide support, whether that is through the coronavirus job retention scheme, tax cuts, tax deferrals, Government-backed loans or cash grants.

[Lucy Powell [V]]

Business support that was originally designed for three months is now wholly inadequate for 12 or 18 months. Business debts and deferrals are mounting and now have to start being repaid, and the holidays are coming to an end, all at one big danger point in April. Cash grants are worth less and many still do not qualify for them. While the Chancellor might pat himself on the back, reports out this week show that nearly 250,000 businesses are likely to go bust this year, taking many jobs with them. Does he recognise that he cannot pull the plug all in one go in April, given that many businesses will not even have reopened at that point, and that with the effects of the vaccine around the corner, it makes no economic sense to allow businesses to go bust at this critical point, having supported them for so long?