Economic Update

Debate between Maria Eagle and Rishi Sunak

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right: at this stage, that is absolutely not the policy that we should be pursuing. What we should be pursuing is policies that will get people back to work, encourage and incentivise businesses to take on new employees and new apprenticeships, and ultimately—he is right—create the wealth that funds our public services.

[Maria Eagle (Garston and Halewood) (Lab)]

Does the Chancellor agree that it makes no sense to withdraw support from businesses that are viable but cannot work at all at present, or cannot work profitably because of the ongoing effects of health restrictions, such as in aviation, aerospace manufacturing and technical production companies, all of which I have in my constituency? Furlough is going to end, but his job retention bonus will not be available to them because they cannot go back to their usual work at the moment. Will he change his one-size-fits-all approach to winding down the employment schemes that have kept many companies going in these sectors? Otherwise, he will simply have deferred a wave of mass redundancies, job losses and business failures of fundamentally sound businesses, which he could save if he makes some adjustment.

[Rishi Sunak]

There are a few remaining closed sectors, and I agree with the hon. Lady that it is absolutely right that we get those open. Indeed, the Prime Minister has said recently that that is something that he is keen to see happen, and hopefully we can make progress on that soon. With regard to the other sectors, we need to adjust to a new economy, which is why it is right that over time furlough winds down gradually and flexibly, while at the same time we reward employees generously for bringing furloughed employees back. We have also put in place a range of other interventions today to help provide hope and opportunity to young people and others across the country.