Public Health Restrictions: Government Economic Support

Mike Wood Excerpts

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

The hon. Gentleman talks about transparency for the Welsh Government. The Chancellor had a call last Friday, which I joined, with the First Minister of Wales as part of our transparency with the Welsh Government, so it is slightly odd to say that we are not being transparent. However, the hon. Gentleman is right that there are issues that need to be managed by the devolved Administrations and the concern he sets out is exactly why we provided the upfront guarantee on Barnett consequentials. We recognise that, in order that the Welsh Government can make decisions in advance of knowing what the Barnett consequentials are, it is important to give a forward-looking guarantee on that. That is why we gave the additional guarantee of £1.3 billion to the devolved Administrations, including the Welsh Government, as a response to the point that he raises.

[Mike Wood (Dudley South) (Con)]

A tenth of pubs have not reopened since lockdown in March while two thirds were already trading at a loss, even before restricted opening times, mandatory table service and the new restrictions announced yesterday. Will my right hon. Friend look at the support that is available for pubs that are not yet compelled to close, but are legally prevented from operating economically, and in particular state aid limits that threaten to prevent 10,000 pubs from receiving the support they need? Without that support, many thousands of pubs will close their doors and never reopen.

[Steve Barclay]

My hon. Friend is a champion of the pub sector and he speaks to the fact that it faces many challenges, but that is why we have been trying to strike a balance. Some would say the curfew is insufficient, but part of it is about recognising the very real pressures on the pub sector that he speaks to. Other colleagues in the House sometimes talk of the Sweden model but, as he will know, in Sweden the 2-metre rule is often more difficult for the hospitality sector and the pubs to adjust to. Ultimately, that is why the Chancellor set out the wider package of support, recognising the concerns he speaks of with the tax deferrals, the loans, the business rate support and the measures on VAT, which are targeted at the sector because of the very real concerns he correctly articulates.