Additional Covid-19 Restrictions: Fair Economic Support

Rachael Maskell Excerpts

Wednesday 21st October 2020 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

The reality is that whether in Lancashire, Liverpool, South Yorkshire or Manchester, there are insufficiencies in the package that the Government are putting on the table. I know from my own constituents in York Central, now in tier 2, that our economy is collapsing. We need to have the proper underpinning, and that is why we need the dialogue. Different economies across the country have different complexities and different needs, and that is what the Minister really needs to get a grip of.

[Steve Barclay]

Sure, but for much of the passage of dealing with the pandemic, Opposition Members have often cited international comparisons. Now, when we point out that the scheme we have brought forward does stand very strong comparison internationally—in fact, the furlough scheme for eight months at 80% was way above what most international comparators offered—they say, “Actually, we do not want to apply international standards anymore. We want to apply a purely bespoke approach.”

The hon. Lady is right to point to the fact that businesses are facing real pain. There is huge pressure on jobs, and that is why the Chancellor set out, in the summer economic update, the acceleration of infrastructure schemes—I think she and I would agree on them—such as the green jobs for decarbonising public sector buildings and how we will meet our net zero obligations. I suspect we share the desire to create jobs through moving that forward and the acceleration of infrastructure through Project Speed.

The Chancellor set out his plan for jobs—the doubling of work coaches, the tripling of traineeships, the £2,000 for apprenticeships—because, as the hon. Lady rightly identifies, those businesses are under significant pressure. That is why, alongside the package of measures for local authorities, we have also applied business grant support of over £11 billion, including funding of leisure and hospitality grants of between £10,000 and £25,000. Further to that, the Government have allocated discretionary business support to mayors, in the case of Liverpool and Lancashire, of a further £30 million. To help businesses with their fixed costs, such as rent and bills, we have also introduced a new business grant scheme in England, and any business legally required to close can now claim up to £3,000 depending on the rateable value of their property. They can claim grant payments of up to £1,500 per fortnight and keep claiming that as long as their businesses are required to close. That is money that does not need to be repaid.

While the grants are England-only, we are the Government for the whole United Kingdom. To address the point made by the hon. Member for Rhondda (Chris Bryant), who is no longer in his place, about what that means for the UK’s ability to support businesses in Scotland, Wales and Northern Ireland—which we are committed to doing as the United Kingdom Government —it means we have guaranteed a further £1.3 billion for Scotland, Wales and Northern Ireland should they choose to follow suit.