Covid-19: Economic Package

Mel Stride Excerpts

Tuesday 12th May 2020 Commons Chamber

[Rishi Sunak]

I thank the shadow Chancellor for her warm wishes and for the constructive support for today’s announcement. I will address two specific points that she raised. First, the word addiction is not one that I have ever used and it is not one that I agree with. Nobody who is on the furlough scheme wants to be on the scheme. People up and down the country believe in the dignity of their work, of going to work and providing for their families. It is not their fault that their business has been asked to close. It is not their fault that they have been asked to stay at home. That is why I established the scheme to support those people and their livelihoods at this critical time. I wholeheartedly agree with the shadow Chancellor in that regard.

On the next steps, I am pleased to tell her that I have already been talking to the TUC and, indeed, the CBI about the future; helping those people to get back into work who, unfortunately, may lose their jobs through this period. That issue weighs heavily on my mind. Every person who loses their job through this difficult period is a person the Government are determined to stand behind, whether that is with new skills, new training or indeed through supporting businesses to create new jobs. We are determined to make sure that that happens. I look forward to continuing my conversations with Opposition Members and with the trade unions, the CBI and other business groups as we look forward to a brighter future. As we get through this crisis, people can come back to work and we can create the jobs and opportunities, and a brighter future for tomorrow.

[Mel Stride (Central Devon) (Con) [V]]

I broadly welcome the statement the Chancellor has made relating to furlough and, in particular, the additional flexibilities that he has outlined, most notably about part-time working. However, as we come through this crisis, many businesses will be saddled with significant debts just at the time that we are looking to those businesses to invest and to grow the economy. Does he therefore agree that it is vital that the Government come forward as soon as possible with a clear plan as to how they are going to assist those companies with that indebtedness in terms of debt forbearance and equity finance so that they can fire up the economy and grow the jobs that the country will so desperately need?

[Rishi Sunak]

As always, my right hon. Friend makes an excellent point. I agree that debt is not the answer to all businesses’ problems at this time, which is why we have provided business with unprecedented degrees of direct cash support, with cash grants of £10,000 or £25,000 for up to 1 million businesses and 750,000 businesses benefiting from a cut in their business taxes and tax deferrals. All of that will help. With regard to equity in supporting the future, I hope he will agree that the Future Fund that we have announced will be part of that solution, with the Government matching essentially quasi-equity investments in early-stage companies to ensure that they are here to power the growth and innovation we will need as we recover from this crisis.