Oral Answers to Questions Debate

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Department: HM Treasury
Tuesday 20th October 2020

(4 years, 2 months ago)

Commons Chamber
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Kemi Badenoch Portrait Kemi Badenoch
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I think that it is probably a good time to remind the right hon. Gentleman that in the Budget we actually increased significantly the amount of money spent on further education. On the union learning grants, I refer him to the Department for Education Ministers who made this decision; I am sure they can write to him again on this. But the Government remain committed to investing in adult skills and retraining: in addition to the plan for jobs, at the comprehensive spending review we will be allocating our new £2.5 billion national skills fund to help more young people learn new skills and prepare for jobs for the future.

Mary Robinson Portrait Mary Robinson (Cheadle) (Con)
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What recent assessment his Department has made of the effect of the temporary changes in VAT on businesses in the tourism and hospitality sectors. [907765]

Jesse Norman Portrait The Financial Secretary to the Treasury (Jesse Norman)
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The temporary reduced rate for the tourism and hospitality sectors came into effect on 15 July 2020 and is helping to support the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs across the UK. On 24 September, the Government announced that they will extend the temporary reduced rate so that it now ends on 31 March 2021.

Mary Robinson Portrait Mary Robinson
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We all want to see a sensible solution to the debate over the covid restrictions in Greater Manchester, but a move from tier 2 will mean the hospitality sector in Cheadle faces the additional blow of tier 3 restrictions, and while reduced VAT in recent months is welcome, businesses in tier 3 will be unable to benefit from the extended scheme. Therefore, in addition to the comprehensive support package, will the Minister consider extending the reduced VAT scheme further in areas that go into tier 3, so that they can do business on that basis for as long as businesses in other parts of the country?

Jesse Norman Portrait Jesse Norman
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As my hon. Friend will know, it has already been extended and she will also be aware that we have put in place a scheme for people who have VAT debt, to allow a payment process that fits their schedule. As the Chancellor has said, to support local authorities at very high alert and to protect public health and local economies, an additional £5 a head, £8 in total, has been made available. That means we have committed up to £465 million in funding for English local authorities through the tiering scheme, and we will announce further details of the eligible expenditures under this scheme.