Covid-19: Government Support Debate

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Department: HM Treasury

Covid-19: Government Support

Rachael Maskell Excerpts
Wednesday 7th July 2021

(2 years, 9 months ago)

Westminster Hall
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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It is a pleasure to speak with you in the Chair, Mr Mundell.

Since the first covid cases in the UK were identified in York 18 months ago, we have been inundated by businesses that are challenged. Although Government relief has been welcome, those ineligible for it have struggled. As covid cases soar again, we worry. This last year, those denied help have seen their life’s work slip through their hands. Many self-employed directors are an example, as are those in the tourism, theatre, events and travel sectors, and those in the supply chains. Even when safe solutions were offered, the Government simply said that they were unwilling to build the capacity to implement them.

Often, it has been the inconsistencies in Government guidance and support that have caused confusion and hardship. For instance, caravan parks with shared showers were open but holiday flats with shared hallways were closed, and those running them were not eligible for support.

As restrictions lift, we are already seeing infection levels spike in York, meaning staff isolating and businesses closing. It is set to get worse, given the Government’s illiterate plans. The economy is being hit and loyal customers are retreating into their homes, once more feeling unsafe. Reality and Government rhetoric are far apart in communities such as mine. The Government have seriously misjudged things and once again businesses and charities are calling for help, both for now and the longer term. Ineligible for support, they cannot depend on this season either. They urgently need a bridge to carry them through, so that they can then grow again.

I will turn to charities. On 8 April, the Government provided support lasting just 12 weeks. Charities have been ineligible for much Government funding. Many have had nothing at all and have had to cut back, yet all the while demand for their services has increased. Understanding of this sector, which forms a crucial part of our social infrastructure, has been severely lacking from the Treasury, which fails to recognise the role that charities have played throughout the pandemic and will play throughout the recovery. Generic schemes simply do not work for them. Will the Minister at least meet the sector’s leaders and listen to their calls for the support they need right now?

Perhaps the most frustrating thing of all has been how impervious the Treasury team have been when they have been written to. We hold the future of local companies in our hands, but we have been given a stock response, often unrelated to the issues that we have been trying to resolve. Businesses have been ignored; support has been denied. Recovery funds for businesses and charities are needed. While the Government are trying to race on, covid infections are racing up. Businesses and charities that have worked so hard to cling on feel that the rope is being cut. We have called for help; we have offered solutions. All we need is for the Government to engage, to rebuild socially and economically. That need has never been greater than it is now.