Oral Answers to Questions
Luke Evans Excerpts(1 year, 8 months ago)
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Victoria Atkins
If the hon. Gentleman would like to write to me about this, I will look into it, but I remind him that I issued a written ministerial statement recently, extending the deadlines precisely to help women in the situation he describes.
Dr Luke Evans (Bosworth) (Con)
The Chancellor and I sat for three years on the Health Committee hearing evidence of just how restrictive the pension rules were for the likes of doctors. The fact that he has now been able to make that change is fantastic. Will he take that approach to dealing with some of the other red tape around retention and recruitment for other professions in the health service because, as the British Medical Association said, it is making a real difference?
Jeremy Hunt
Few people know as much about this issue as my hon. Friend, given his background in the NHS. He is right, and I know that my right hon. Friend the Secretary of State for Health and Social Care is looking closely at the issue of retention, which has an equally important role to play.
Co-operatives, Mutuals and Friendly Societies Bill
Luke Evans Excerpts(2 years ago)
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Sir Mark Hendrick (Preston) (Lab/Co-op)
I beg to move, That the Bill be now read a Second time.
May I begin by thanking the former Minister, the hon. Member for North East Bedfordshire (Richard Fuller), who is in the Chamber, for his time and effort— I am also grateful to civil servants for their time and effort—and for our fruitful discussions, which have led me to introduce the Bill in the Chamber? While the Bill does not cover the whole scope of what I wanted to achieve, the fact that the Government are willing to give their support to a key part of my proposals and instruct the Law Commission to conduct a review of legislation affecting co-operatives, mutuals and friendly societies is, in my view, major progress.
I first became active in the co-operative movement 40 years ago, when I bought a £1 share in the Norwest Pioneers Co-operative Society in 1982. The society had evolved from the actions of the original Rochdale Pioneers in 1884, and set up what is generally regarded as the first successful co-operative retail venture. The society was set up in the harshest times, when 19th-century industrial capitalism was on the rise. It was an age of child labour, exploitation and poverty. Sometimes owners of cotton mills paid their workers in tokens, which could only be spent in shops owned by the mill owners. In those shops, the food was often adulterated, so those pioneers set up their first shop in Toad Lane in Rochdale. It was an explicit example of self-help, which started a movement that is now global.
Co-operative societies then mushroomed to form dozens of co-operatives in many Lancashire towns and cities until the 1930s, when the Manchester, Salford and Stockport societies amalgamated to form the North West Co-operative Society. In July 1982, what became the Norwest Co-operative Society merged with the Pioneers Co-operative Society to form the Norwest Pioneers. I bought a share later that year. I would never have dreamed that 40 years later I would have the opportunity to stand here and propose a new piece of legislation that could help to preserve and protect members’ assets accumulated, in many cases, over generations from potential predators who, in recent decades, have sought to take away those assets from members for their own personal profit and gain. That matters to me because co-operation and mutuality are about equity and fairness. The growth of co-operatives in the UK is an integral part of the levelling-up agenda; it can provide many thousands of new jobs in the economy; and it is complementary to the Government’s growth agenda.
Alongside investor-owned firms, co-operatives, mutual insurers and friendly societies have an important part to play in the biodiversity of our economy. These businesses share their origins in self-help movements that are relevant to the economic and social challenges that people face today.
Dr Luke Evans (Bosworth) (Con)
The hon. Gentleman is making a fantastic speech. In my constituency, in Hinckley and Bosworth we have several building societies spawned from the fact that we had shoe manufacturing there. Does the hon. Gentleman agree that it is fantastic to have a mix of options for people? These organisations will often pick up people who may not be able to get finance and support they need, but because they have that local community connection they are able to make that judgment and give people the support they need; that should be welcomed.
Sir Mark Hendrick
I agree and commend the hon. Gentleman for his comments. Co-operatives spring up from local communities; they are bottom-up, grassroots organisations—certainly not top-down.
As I said, alongside investor-owned firms, co-operatives, mutual insurers and friendly societies have an important part to play in the biodiversity of our economy. They need a business environment that facilitates this: Government policy that understands and supports the mutual business difference; and legislation that is up to date, flexible and permits co-operatives, mutuals and friendly societies to undertake their purpose of serving their members’ needs in the best way possible. Only by working in a modern and supportive business environment will co-operatives, mutuals and friendly societies be able to make a full contribution to the prosperity of our country by serving the interests of customers and citizens. Yet demutualisation remains a real and present threat to the mutual sector, which is, unfortunately, incentivised by the system.
My Bill is about giving mutuals the option to maintain mutual capital for the purpose it was intended. There is a fundamental distinction between the rights of members of a mutual society and members of an investor-owned company. Members of a company—shareholders—have the right both to a pro rata share of distributed profits, or dividends, based on their shareholding, and also to a pro rata share of the underlying value of the company. The more capital they own, the greater their share of the profits and of the value of the company. Members of a mutual society, by contrast, generally have neither of these rights, because in mutuals profits are generally not used as a mechanism for rewarding capital, and members of a mutual do not have any expectation of any entitlement to a share in the increased value of their society.
Since members of a mutual are not entitled to any share of its increased value, the amount by which the net asset value of a society exceeds the capital provided by members—commonly referred to as the “capital surplus on a solvent winding up”—has no specific owner. It is effectively a legacy asset, held by the society for future generations, and enables it to provide for, and invest in, its future. It is a core part of its mutual identity. It represents the trading surplus accumulated by previous generations of members participating in their society’s business, in which they were always content to have no personal share. By implication, it is held for the benefit of future generations. Societies were originally set up not to make a capital surplus to reward members, but to provide goods and services for those who need them; that was the purpose, and this was the basis upon which previous generations have taken part in the trade.
Seen through the lens of investor-ownership, a capital surplus is a tempting asset—a windfall or unearned profit —which, if mutual members were to be replaced by investor-shareholders, could be shared out among those shareholders. Capturing this asset is the usual incentive for a “demutualisation”, which is when a capital surplus or legacy asset is divided up between shareholders—when the mutual agreement between the former members, whereby they engaged in their society on the basis that they would not personally profit from its trade, is broken up. In short, it is when a mutual purpose for the common good is replaced by a profit-driven purpose for private benefit.
In UK law there is no generic or principled recognition of the value to wider society of mutuality or of the legacy asset of a mutual society. As a result, the ability to access legacy assets actively incentivises demutualisation.
Sir Mark Hendrick
I thank the hon. Member for his intervention. Actually, I will come to that later in my speech.
Provided that the relevant formal procedures are completed, including securing consent from a statutory minimum threshold of members, a demutualisation cannot be stopped. That threshold has been changed from time to time for different types of mutual societies to make demutualisation less likely, but those measures provide only partial protection. There is currently no statutory mechanism for ensuring that surpluses, which previous generations never intended to be a private reward for anybody, remain committed to that wider public purpose.
At the moment, legislation governing mutuals can incentivise demutualisation by permitting those legacy assets to be distributed. Legacy assets have often been built up over many generations of membership and can constitute a significant part of the working capital of the business. Current members typically have not contributed to that capital base but have enjoyed the benefits of previous years of successful trading. Most demutualisation attempts succeed, assisted by a significant power imbalance between the boards of mutuals and members.
The example of Liverpool Victoria last year shows that demutualisation attempts can, however, be defeated, even when proposed by a mutual’s board. We should be wary of the interests that private equity is showing in mutuals across the world, attracted by the prospect of acquiring significant assets built up by generations of members. At present, it is not possible for an existing society, or those setting up a new society, to proscribe demutualisation. That leaves mutuals vulnerable to those simply aiming to liberate those legacy assets, sharing them out among people as they choose, and converting the business into an investor-owned company. That has resulted in much of the UK building society sector being lost and their businesses either failing or transferring to non-UK ownership. That has been bad for mutuality and bad for the economy, given the damage that it has caused to corporate diversity.
Demutualised former building societies were mostly absorbed into banks that failed during the financial crisis. None of the demutualised former building societies continued for long as an independent bank. They became part of larger listed banking groups or, in the cases of Northern Rock and Bradford & Bingley, failed in the financial crisis and were later nationalised. Moreover, those demutualisations converted some of the largest building societies at the time. The argument for demutualisation has proved to be bogus. It has not delivered the strong independent businesses that it was supposed to do, and the need for more capital is soon forgotten as the newly proprietary entities are generally merged into larger firms.
Diversity of ownership types and business models creates a corresponding diversity in forms of corporate governance, risk appetite and management, incentive structures, policies and practices, and corporate behaviours and outcomes. It also offers a wider choice for consumers and enhances competition that derives in part from the juxtaposition of different business models.
Legislation is needed to help UK mutuals to preserve their legacy for the purposes for which they were intended, to maintain and encourage greater corporate diversity, and to build a more resilient economy. Mutuals need to be able to incorporate appropriate measures into their constitutions which have a statutory basis, either at the point of establishment or thereafter, with an appropriate level of member approval. This will be even more important if the legislative reforms for co-operative and community benefit societies explained above are taken forward. To optimise the successful implementation of new legislation, properly recognising legacy assets for the benefits they bring will be an important ingredient for building confidence.
Many jurisdictions have acted to preserve mutual ownership by ensuring that assets are used only for the purpose for which they were intended. That ensures they cannot be distributed to members or third parties, and thus disincentivises demutualisation. Mergers, dissolutions and transfers of business are still permitted, so this arrangement does not hamper the evolution of business in any way. Ideally, such measures will be universal, but in some legal traditions that is considered problematic as it arguably alters members’ ownership right retrospectively. It is not desirable to cut and paste legislation between different traditions, so solutions are required that respect the culture of different legal frameworks. To deal with that, simple legislation can be introduced in common law jurisdictions that would give every mutual the right to choose a constitution that preserves legacy assets for the purpose they were intended.
My Bill does that. My Bill disincentivises the raiding of legacy assets. Voluntary legislation will ensure that legacy assets are preserved for the purpose for which they were intended. It empowers mutual members to decide what should happen to assets on a solvent dissolution. It would match the best legislation that exists in many other countries. My Bill also: introduces a voluntary power to enable a mutual to choose a constitutional change, so that its legacy assets would be non-distributable; details precisely the destination of any capital surplus on a solvent winding up; outlines the procedures necessary to include such provisions in a mutual’s rules; and inserts a statutory provision for the relevant rules to be unalterable. My Bill will define the capital surplus as the amount remaining after deducting a mutual’s total liabilities from its assets, including repayment of members’ capital.
Dr Luke Evans
The hon. Gentleman is making a fantastic speech on how to protect from demutualisation, but it seems a very defensive way of looking at things. Will the Bill provide a chance for new innovations and further capital to be brought into the sector to help its members?
Sir Mark Hendrick
I thank the hon. Gentleman again for intervening. One proposal I did not take up and put to the Government was the idea of a new share for co-operatives that would allow them to develop in a way that they have not been able to before. Unfortunately, the Government are not at the moment able to do that, but it would bring in the additional capital to encourage the growth he talks about. I understand from the Government that it will be considered as part of a Law Commission review of the sector. The issue is on the agenda; it is just not included in the Bill at the moment.
My Bill will introduce new provisions to maintain the destination of the capital surplus to ensure that where a mutual’s rules make the capital surplus non-distributable, any resolution to convert it into, amalgamate with or transfer engagements to a company shall also include a provision to transfer the capital surplus, as provided by the rules in the event of a solvent winding up. With the support of the House, we will be able to incorporate sensible amendments that ensure that this legislation works for the co-operative and mutual sector, and fits in with the Government’s stated policy objectives.
In finishing, I would like to thank the Minister and his officials for their time devoted to holding discussions and their help in re-drafting parts of my Bill to our mutual satisfaction. I thank Peter Hunt and Mutuo for their help, advice and expertise throughout the time we have been working together on the Bill, and I thank the Co-operative party and the co-operative societies, mutuals and friendly societies that have engaged with me to give me the encouragement and enthusiasm to get to this stage. I look forward to working with parliamentarians from across the House to get the Bill through the forthcoming stages required to bring it into law.
Before I sit down, Mr Speaker, I would like to declare an interest as a Co-operative Member of Parliament and as a member of a co-operative society.
Dr Luke Evans (Bosworth) (Con)
Similarly to my hon. Friend the Member for Warrington South (Andy Carter), if I had walked down Hinckley high street earlier this week and told people that I would be talking about the Co-operatives, Mutuals and Friendly Societies Bill this Friday, they would have looked at me aghast or blankly and said, “What’s he talking about?” because they would have had no idea. I want to put this in perspective: what does it mean to the people of Hinckley and Bosworth? In considering that question, we can see how far these mutuals have come.
I, too, have a local Co-op card, because in my area we have multiple Co-ops, including one in Newbold Verdon, two in Desford, and one in Earl Shilton—they really are part of the fabric of Leicestershire.
Chris Clarkson
Does my hon. Friend agree that anybody putting money into the local economy in my constituency is a good thing?
Dr Evans
It is absolutely fantastic, and even better when it is just down the road if you are in your pyjamas. The main thing is not to forget the card so you can support the economy.
It goes a little further than that. I began to think about the other things that could be tied up with mutuals. I was a doctor before I came to Parliament, and had a lot of dealings—I still do, and declare an interest—with them. I have investments with the Wesleyan Assurance Society, which began in Birmingham in 1841, supporting doctors with investments and financial products. Both professionally and in the local community, we can see the effect that mutuals have. It goes further than that. In my constituency, the Hinckley & Rugby Building Society was formed in 1983 when two societies joined, but there has been a society in place since 1961. It is in the top 20 building societies, with assets of £830 million, and more than 50,000 users and customers, many of whom are based in my local area. It emerged from the need to support our local industries, particularly lacemakers and shoemakers. It is still there today, providing products for people who might not be able to secure them on the open market.
Andy Carter
My hon. Friend is generous in accepting interventions. As he knows, I grew up in his constituency. One of the first things my mum and dad did was open an account at the Earl Shilton Building Society, and I still have that account today. I think that they put in £2—today, having not put any money in, it is worth about £4,000. That is certainly a demonstration of the value of local building societies and the role they play in local communities.
Dr Evans
My hon. Friend is absolutely right. When I was young, I was given a small account with the Nationwide Building Society. It was common for previous generations to do that. We seem to have lost the sense of what building societies and mutuals can provide in our community. That is why it is good that the Bill has been introduced, so that it can provide a forward-thinking ability not only to defend them but to set them up for the future.
We can see the tangible difference that these societies can make. The Hinckley & Rugby Building Society supported a cricket match in Earl Shilton, as well as Leicestershire Cares, giving money back and investing it to make our communities better.
I will not dwell on the impact of the Bill, because what it is trying to do has already been highlighted. The provisions that would be put in place would not interfere with the ability of co-operatives to give profit to members or pay interest on share capital. I am keen to see, as I hinted in my intervention—and as has been followed up by my hon. Friend the Member for North East Bedfordshire (Richard Fuller)—how we can turn this into an industry that is fit for the future and drives innovation in the sector. The measure is a starting framework that can provide for that. If the Law Commission review is correct and forward thinking, we can restore the impact of mutuals on society that I had the pleasure of seeing as I grew up, and now have the pleasure of representing in my area. Long may they live.
Economic Responsibility and a Plan for Growth
Luke Evans Excerpts(2 years, 1 month ago)
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Andrew Griffith
No. Treasury officials will lead a review regarding the appropriate measures to support households and businesses with their energy needs beyond April, but without the taxpayer picking up an inappropriate share of the burden.
Dr Luke Evans (Bosworth) (Con)
The energy plan means that the most vulnerable get up to £1,200 in support. When it comes to the review in April, will the Minister ensure that the most vulnerable people are again at the forefront of getting that support?
Delivery of Public Services
Luke Evans Excerpts(2 years, 4 months ago)
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Mr McFadden
My hon. Friend is right. In a debate on the subject last week, the shadow Health Secretary, my hon. Friend the Member for Ilford North (Wes Streeting), outlined a horrific case.
Dr Luke Evans (Bosworth) (Con)
Is the situation not more nuanced? Healthcare is devolved in Northern Ireland, Scotland, Wales and England, with four different parties running it, but all have suffered and seen waiting times go up not only during the pandemic but in the preceding 10 years. Does that not show that there is a fundamental problem across the western world, because the likes of Germany, the Netherlands and France are all struggling and suffering the same fate?
Mr McFadden
To govern is to take responsibility, and the problem with saying that it is all about the post-pandemic situation is that waiting lists had almost doubled before the pandemic. I could give the hon. Member the figures again, but I do not want to read them out twice.
It is not just about the NHS. There are also delays at our ports. We have seen long queues of lorries—the delays are well known—and increased costs and bureaucracy for exporters.
Mr Clarke
Well, there have been many projections about Brexit, many of which have proved totally wrong. I certainly do not regret my vote to leave the European Union. We managed the fastest vaccine roll-out in Europe; we are able to create our new freeports; we are free of the European Court of Justice; and we are not sending huge sums to Brussels, and can instead deploy that money for the public good. Frankly, those are all reasons why this Government were returned with a thumping majority in 2019. Crucially, it is a settled question, and it would be well for this country to move beyond it. There are all sorts of debates to be had about how we can take advantage of our decision to leave the European Union; those would be a more productive use of this House’s time.
We have a plan to grow the economy sustainably, boost productivity and improve living standards for millions of households in the years to come. In the past two years, the Government have demonstrated our determination to lead this country through the worst crisis—indeed, crises—in living memory. We will do the same as we tackle the challenges of today. As I have mentioned, the Government have taken steps to address the cost of living challenges. We are putting £37 billion into helping households, and are targeting that support at those who need it most. The households most vulnerable to high inflation will receive an extra £1,200 this year, with the first payments coming next month. Everyone will benefit from our energy support package, which will provide £550 for 28 million households.
Dr Luke Evans
I have had the good fortune to go to Hinckley jobcentre to see how things are functioning there, given the adversity that our constituents face. One of its strongest features is the household fund, which delivers to those who are most needy. It gives the officer who sits in front of an individual the flexibility and accountability to support them at that point. Is that not exactly what we should be doing—targeting our greatest support at those who are most vulnerable?
Mr Clarke
I completely agree. That has also been my experience at my jobcentre. It is really important that across the House we emphasise that our jobcentres are a fantastic source of support and not something to be scared of. The teams in my constituency could not be more committed to helping the public; I am sure that the same is true of those in my hon. Friend’s constituency. That is a really important message, given our aim of getting as many people as possible into work.
Crucially, our package of support is more generous than what the Labour party suggests; that may be why there has been some chuntering on the Opposition Front Bench. The public, if they are in the 8 million means-tested benefit households, will receive £1,200 under our plans, compared with only £600 under Labour’s. The Institute for Fiscal Studies has said of our intervention:
“On average the poorest households will now be approximately compensated for the rising cost of living this year.”
On top of that, we have cut fuel duty, and we have set aside £1 billion to help those who are most in need with the cost of essentials such as food, clothing and utilities through the household support fund, which my hon. Friend the Member for Bosworth (Dr Evans) mentioned.
There are other ways of putting money back into people’s pockets. From next week, as the Chancellor explained in the spring statement, working people
“will be able to earn £12,570 a year without paying a single penny of income tax or national insurance…That is a £6 billion…tax cut for 30 million people across the United Kingdom”.—[Official Report, 23 March 2022; Vol. 711, c. 340.]
Mr Clarke
I want to reassure the hon. Lady and her constituents that we completely agree that there is a need to ensure that those sorts of scans happen as speedily as possible. That is why the total budget of the Department of Health and Social Care in 2024-25—that is to say, at the end of this Parliament—will stand at £188 billion a year. That is a truly colossal sum of money and it equips the NHS to bear down on precisely these backlogs in a way that will help women in her constituency.
Dr Luke Evans
I sit on the Health Committee, and we were talking this morning about some of the problems with the workforce and the interaction between primary care and secondary care. One of the responses was that the 42 new integrated care systems that have been put in place will give us the flexibility to change the system. Does the Minister agree that this is exactly the kind of planning and foresight that allows us to deliver better for the future, and to future-proof our health service to try to deal with some of the problems that we all know are affecting western world medicine?
Mr Clarke
I agree with my hon. Friend. It is crucial that the NHS continues to reform and, frankly, become more fit for a technological age, as well as for one in which we can anticipate these problems ahead of time. We should act to improve the use of all the technologies, which will mean that we get more value for taxpayers’ money. With an ageing society that is plagued by so many avoidable and preventable conditions, we need to be able to catch them in time, and that planning and foresight will be crucial for the future.
Oral Answers to Questions
Luke Evans Excerpts(3 years, 2 months ago)
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Rishi Sunak
I will be brief, Mr Speaker. When the hon. Lady was appointed shadow Chancellor, she went out of her way to say that any policies that the Labour party put forward on her watch would be “fully costed and we will explain how they are paid for”. We have heard about uplifts to welfare. We have heard about more money for public sector pay. We have heard about opposing every difficult and responsible decision that this Government have made. We have not heard once how the Labour party will pay for anything and we know what happened last time around when it did that.
Dr Luke Evans (Bosworth) (Con)
The Chief Secretary to the Treasury (Steve Barclay)
I do not know about the Chancellor, but I am sure my children would love to come and visit the zoo. I thank my hon. Friend for putting forward a bid for the levelling-up fund. As he will know, bids are currently subject to competitive assessment against objective criteria, but more generally, I think the whole House will welcome the fact that zoos are once again fully open to the public this summer. They provide a wide range of valuable benefits.
Economy Update
Luke Evans Excerpts(3 years, 5 months ago)
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Steve Barclay
I have set out the comprehensive package of support that applies to businesses with restart grants and so forth. Of course, I would draw the hon. Gentleman’s attention to the support through local authorities, including the discretionary grants that are available as well.
Dr Luke Evans (Bosworth) (Con)
I continue to meet businesses in Bosworth, most recently those from the Hinckley business improvement district. They told me they were very grateful for all the support the Government have offered during this time, but they are looking to grow for the future as they come out into the post-pandemic economy, and one of the biggest concerns they have is business rates. I know the Chancellor is committed to a review of business rates. Is the Treasury heeding that call, is the Chancellor committed to bring that forward, and is there a timeline to do so?
Steve Barclay
As my hon. Friend touched on in his question, the Government have committed to conclude the business rates review by autumn 2021. The review is considering the issues he mentions, including the fundamental changes to the administration of the business rates system and indeed the impact that has on businesses.
Spending Review 2020 and OBR Forecast
Luke Evans Excerpts(3 years, 12 months ago)
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Rishi Sunak
We want our recovery to be green and the national infrastructure strategy sets out an ambitious way to do that. Skills are at the heart of what we believe, giving people the tools they need to improve their lives and go on to better things. We are funding £375 million today to deliver our commitments on the Prime Minister’s lifetime skills guarantee and other matters. The hon. Gentleman can rest assured that that remains an area of enormous focus for this Government.
Dr Luke Evans (Bosworth) (Con) [V]
In the light of the difficulties the country faces with its finances, I was pleased to see the commitment to infrastructure. Is the Chancellor aware of Hinckley bridge on the A5, which has been awarded the status of “most bashed” bridge in Britain? It has been hit 25 times and causes a delay of six hours every time. It is a prime example of the pinch points littered up and down the A5, which strangle productivity. Will he commit to provide funds to the likes of the A5 to bring prosperity to the midlands and grow our economy out of the covid situation?
Rishi Sunak
My hon. Friend articulates well an example of local pinch points being a blight on communities, stopping people improving the quality of their life and driving growth. It seems like a very good example of the type of project that our new levelling-up fund would be interested in, and I look forward to discussing it with him further.
Covid-19: Disparate Impact
Luke Evans Excerpts(4 years, 1 month ago)
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Kemi Badenoch
The hon. Gentleman is right to raise that issue. As he will remember, I mentioned that 95% of ethnic minority workers have had risk assessments—we have spoken about that at several points during oral questions in the House. That is the issue that they have been trying to tackle. It is important that risk factors are taken into account before people are deployed in various sectors. We know that ethnic minorities are over-represented in lower-paid parts of the NHS, and we will be tackling that structural issue. But risk assessments are the key thing to ensure that people understand their risk and that is how we will deal with that.
Dr Luke Evans (Bosworth) (Con)
I welcome the Minister’s statement, and the Health and Social Care Committee is also starting to consider this area. Is she aware of the paper in The Lancet entitled, “The impact of ethnicity on clinical outcomes in COVID-19: A systematic review”, which was published in June? It broadly picked up three areas: biological, the ACE2 receptors and difference in immune responses; the medical aspects, people having different cardiovascular or diabetic risks; and the socio-economic factors around crowding and job type. The study noticed limitations with all those areas and had questions about which predominates, so will the Minister commit to a road map to get more evidence and research to better understand the factors that we can control, and those we cannot?
Kemi Badenoch
I will ask my colleagues in the Race Disparity Unit to see whether we can have a road map.
Covid-19: Economy Update
Luke Evans Excerpts(4 years, 1 month ago)
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Rishi Sunak
The hon. Lady is right to say that we did not have a wage support scheme when we entered this crisis, which is why I place on record my thanks to the fantastic team of officials at the Treasury and at HMRC for acting with unbelievable speed and decisiveness in helping me to create, design, and implement these schemes in record time, enabling us to help pay the wages and protect the jobs of more than 9 million people.
Dr Luke Evans (Bosworth) (Con)
Last night I had a meeting with the Hinckley business improvement district and met businesses that raised concerns about what would happen should they go into tier 2. At the time I told them that the Chancellor and the Treasury were listening, and I am pleased to welcome the support for businesses in tier 2, should my area move into that. In the spirit of listening, will the Chancellor consider providing a road map for businesses that are struggling the most, such as those running weddings, events and conferences and those in the travel industry, to try to provide some clarity and certainty going forward?
Rishi Sunak
I am grateful to my hon. Friend for raising this. He has raised with me the impact on businesses in his area of a potential move into tier 2, and I hope he will be reassured by the announcements today. Travel and events are interlinked. As he and I know, we must work to find a way to allow more travel to happen. The Transport Secretary has spoken to colleagues about that. He is actively engaged in working with industry and health professionals to see what more we can do to facilitate greater ease of travel, and therefore open up travel corridors and help our events industry.
Oral Answers to Questions
Luke Evans Excerpts(4 years, 4 months ago)
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Dr Luke Evans (Bosworth) (Con)
The Economic Secretary to the Treasury (John Glen)
The bounce-back loan scheme is aimed at helping the smallest businesses across different sectors of the economy to access the finance they need, and we have seen 1 million loans worth almost £31 billion approved since the scheme was launched on 4 May. We are carefully monitoring the use of this scheme by businesses and will keep all policies under review.
Dr Evans [V]
I am grateful for the Minister’s answer. Undoubtedly, bounce-back loans have been a success of this pandemic. However, I have a concern that normally viable small and medium-sized enterprises will face acute problems due to covid and may need to make redundancies. The payments associated with redundancies may, in turn, cause normally viable companies to become insolvent, thus losing all jobs and putting more pressure on the state. With that in mind, will he consider a fund or time-limited mechanism to ensure that SMEs can provide redundancy payments due to covid, thus allowing them to remain solvent, protecting them from further job losses and providing some short-term stability for them to bounce back in the future?
John Glen
I thank my hon. Friend for his question. Of course we recognise the importance of SMEs—there are 5.6 million businesses across the country with fewer than 10 employees, and we need their dynamism and entrepreneurial spirit as the economy starts to recover. The Government have said from the start that they will do whatever it takes to support business. The Chancellor has introduced a significant package of measures, which will be under review, and there will be further announcements in due course.