Lockdown: Economic Support Debate

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Department: HM Treasury

Lockdown: Economic Support

Martin Vickers Excerpts
Tuesday 3rd November 2020

(3 years, 8 months ago)

Commons Chamber
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Steve Barclay Portrait Steve Barclay
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Such has been the number of times that the matter has been raised in the House and through the campaign, we have looked at it. Some of those issues have not changed—for example, the difficulty of determining what is dividend income as opposed to earned income, as I referred to in my answer to my right hon. Friend the Member for Wokingham (John Redwood). We took a decision to target those below the £50,000 threshold. Some of those issues have not changed from the previous period.

The hon. Gentleman is right that the furlough allows some of those who were excluded to come within scope, but I draw the House’s attention to the fact that, even within the House, there is a degree of conflict here. The Treasury Committee has said that we should be more willing to bring the cohort of the self-employed into scope, yet the Public Accounts Committee has expressed concern that we need to have much stricter operational controls because of the risks, for example, of fraud. We see that difference even between the two Select Committees in this House. Of the different cohorts within what is known as the ExcludedUK campaign, some of those on furlough will be able to come back into scope, but much of the rationale has not changed. Of course, we will continue to look at it.

Martin Vickers Portrait Martin Vickers (Cleethorpes) (Con)
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May I seek further clarification on the previous answer and on the point raised by my right hon. Friend the Member for Wokingham (John Redwood)? Self-employed people who have in effect created a limited company and draw dividends are being prevented by the Government from trading. Rather than just outlining the difficulties, will the Chief Secretary commit to saying we will find a way around that, so we can actually tell our constituents what support they will receive over the next few weeks?

Steve Barclay Portrait Steve Barclay
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For reasons I set out some time ago to the Treasury Committee, and for the reasons set out by the Chancellor, operationally the concern is that while there will of course be many legitimate circumstances where people wish to make a claim, unfortunately there will also be significant risk of fraud. I pointed to the fact that within the House itself part of the challenge is how we ensure we have the right balance between the speed of delivery—we move quickly to get schemes to people—with the operational controls we put in place. That is why we have taken the position we have.