Covid-19 Support Schemes: Ineligible People Debate
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Nick Fletcher
Main Page: Nick Fletcher (Conservative - Don Valley)Department Debates - View all Nick Fletcher's debates with the HM Treasury
Covid-19 Support Schemes: Ineligible People
Nick Fletcher Excerpts(3 years, 11 months ago)
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Nick Fletcher (Don Valley) (Con)
I thank the hon. Member for Twickenham (Munira Wilson), and declare my interest as a director of two limited companies. As I have said countless times before in the Chamber, and in Westminster Hall, the Government’s economic response to the pandemic has been unprecedented. As we promoted Small Business Saturday over the weekend, I was pleased to note that almost 1,500 businesses in my constituency have benefited from bounce back loans, and 3,500 people have kept their jobs because of the furlough scheme. As I made clear three weeks ago, it is time for the Government to provide support for directors of limited companies.
Being a limited company has some small benefits with regard to national insurance payments, although much of that is negated by the payment of corporation tax. The main reason for being a limited company is, as is indicated by the name, to limit one’s liability as an individual. To be penalised because one is a director and takes remuneration through a dividend seems harsh.
A week is a long time in politics; three weeks, it seems, is a lifetime. On 18 November I stood in the Chamber along with many of my colleagues and called for large supermarkets to return the rate relief they had received from the Government, as they had not been hit financially by covid. I am pleased to say that since then £1.8 billion has been issued back.
With this in mind, I call on the Minister to do three things: ensure that those businesses and sectors that were not in financial trouble return the moneys gained through rate relief; give businesses the option to tick an opt-out box to ensure they do not receive unneeded support in the first place; and, most importantly, listen to the concerns and recognise the plight of the self-employed directors. We are receiving funds back from supermarkets and other businesses; now is the time to use this money wisely to allow businesses to stay afloat as we begin to reach the light at the end of the tunnel.
Christina Rees (in the Chair)
I thank hon. Members for adhering to the time limit; it is much appreciated.