Rishi Sunak
Main Page: Rishi Sunak (Conservative - Richmond and Northallerton)Department Debates - View all Rishi Sunak's debates with the HM Treasury
(4 years, 1 month ago)
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Rachel Hopkins (Luton South) (Lab)
The Chancellor of the Exchequer (Rishi Sunak)
Before I start, I know that Members from around the House will join me in commemorating World AIDS Day and the many organisations that make this day happen. As we remember those we have lost to HIV and AIDS, we also remind ourselves of the need for further action. I am proud that this Conservative Government’s policy is to end new HIV transmission by 2030—a commitment reaffirmed today at the launch of the HIV commission.
Throughout this crisis, the Government’s economic priority has been to protect jobs, livelihoods, businesses and public services, and we have spent more than £280 billion in doing so.
Jessica Morden [V]
Given that the Chancellor has accepted that the job retention scheme and the self-employed income support scheme need to be in place until March, does he think it is right that those who have fallen through the gaps in those schemes—highlighted by the Federation of Small Businesses—will have been without support for an entire year by then? Why have Ministers not had the decency to meet groups such as ExcludedUK?
Rishi Sunak
My right hon. Friend the Financial Secretary is meeting that group and other Members, and I and other members of my team have met various representatives of the self-employed and other employed people who would like to make representations. It is fair to say that I do not agree with the idea that those people have been excluded: the Government have provided support in many different ways to many people in different circumstances. We remain committed to that support throughout this crisis.
Chris Elmore
Surely the Chancellor can understand that these people do not have any money—they have not benefited from the Government schemes that Members from all parties welcome. How can it be that the Musicians’ Union, ExcludedUK, the FSB and various other organisations and trade unions can be wrong, and that the people who have not benefited from the schemes can be wrong, and the Chancellor can be right? Why does he not accept that he has made a mistake and introduce additional funding to support those people who have been excluded from the schemes?
Rishi Sunak
I am not making the point that every single person can access every single scheme that the Government have put in place. That is not what I am saying; everyone will have different circumstances. What I am saying is that across the suite there is a range of support—a sum total of £280 billion-worth—designed to protect businesses, the employed, the self-employed and public services. Indeed, councils have been given large amounts of funding—billions of pounds—to help those in their communities who need it most, and they are well placed to make those decisions.
Paul Blomfield [V]
In the summer, one of my constituents opened a new bar in a previously thriving area, but she shut it on 23 October as we went into tier 3. She paid her workers for that week, but she could not get furlough support until 1 November because, as hers was a new business, her staff were not eligible for registration with the previous scheme. She is just one of many who the Chancellor will know have fallen through the gaps in his support schemes. Will he recognise the problem, act to close the loopholes and provide the support that is needed, particularly in the hospitality sector and its supply chain?
Rishi Sunak
The hon. Gentleman mentioned support for the hospitality sector and bars; he will of course know that support has been provided through initiatives such as the business rates holiday, which I am sure his constituent benefited from for this entire year up until the point she was struggling, as well as the cash grants for businesses earlier in the crisis, the VAT discount, eat out to help out and the further support provided to local authorities to support the supply chain. There is a significant amount of resource to help businesses like that of the hon. Gentleman’s constituent, which I know have had an extremely difficult time.
Afzal Khan [V]
I was recently contacted by David and Alice, a couple with four young children. They are both directors of Around the Box Limited, but have seen their income slashed this year as a result of the pandemic. Around the Box sells boxes of puzzles and games to encourage families to laugh and connect. I trust the Chancellor will agree that such companies, which bring joy to families in times of real hardship, should be protected. Why, therefore, have my constituents, David and Alice, along with millions of people like them, been excluded from all Government support and left to fend for themselves?
Rishi Sunak
I feel very bad for David and Alice with the difficult situation that they are facing. However, I am sure that their small business, like a million other small companies across the country, has been able to benefit, I hope, from the bounce back loan programme, one of the most successful small business loan programmes that we have seen throughout this crisis. It has provided tens of billions of pounds to a million small and medium-sized businesses—up to £50,000—to help exactly those companies to get through this difficult time.
Rachel Hopkins
While the Government have provided support for creative institutions through the culture recovery fund, they are running the risk of losing our world-renowned elite west end musicians who are excluded from financial support due to being freelancers or limited companies. We risk losing these elite skills altogether and damage to the industry would have a negative impact on the ability of young musicians from working-class towns such as Luton being able to pursue a career in music.
Considering the sector provides more than £5 billion to our economy, can the Chancellor update the House on what barriers remain to getting support to musicians?
Rishi Sunak
There is no barrier to support for anyone to access any of the various things that we have put in place. I am glad that the hon. Lady mentioned the culture recovery fund. At £1.5 billion, it is something that I do not believe any other country has done at such a scale, coupled to which is our further support for the creative arts and the film and TV production industry, which my right hon. Friend the Financial Secretary to the Treasury will be talking about later. We agree that this is an important sector and we want to ensure that it can get back to work.
Alison Thewliss (Glasgow Central) (SNP)
I would never accuse the Chancellor of misleading the House, but he certainly seems to have misled “Good Morning Britain” when he told viewers that he had spoken to, and had back and forth with, representatives of excluded groups. Those groups are clear that he has not. Will he apologise for the oversight and make amends by meeting MPs and representatives of all groups that have been denied financial support?
Rishi Sunak
I know that my right hon. Friend the Financial Secretary to the Treasury is meeting with that particular group. In that interview, I was making a general point about the fact that I and my team had met with various representatives of those who are self-employed. It is something that we did right at the beginning of this crisis as we looked to design the self-employed scheme and we have continued to do so throughout.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
We all understand that it was hard back in March to get every detail right on Government support schemes, but nine months on, why does the Chancellor still have absolutely nothing new to say to those millions of people right across our country who have been shut out from support since the beginning?
Rishi Sunak
Perhaps the hon. Lady could let me know whether she thinks that it is right to target support on those who are majority self-employed. She refers to the millions of people, but, as I have explained from this Dispatch Box, 1.5 million of the 5 million people who file self-employed tax returns are not majority self-employed; they earn the majority of their income from things such as employment, which means that they can access, for example, the furlough scheme. That was a decision that was made because we are targeting support in a certain way and we do not know what individuals are doing. By the way, the principle of our decision was supported by every organisation that I spoke to as we designed the scheme. Indeed, they were all supportive of a much higher threshold—a less generous threshold—than the one that we ultimately used, which was a majority of 50%. They were all supportive of something higher— 60%. Rest assured, Mr Speaker, that those who are in that category have median self-employment earnings of between £2,000 and £3,000; it is not the primary source of their income. At that level, all the various other things that we have done will be of some help to them.
Owen Thompson (Midlothian) (SNP)
The Chancellor of the Exchequer (Rishi Sunak)
The economic impacts of coronavirus and the substantial fiscal support provided have meant a necessary increase in our deficit and debt levels this year. That is the right thing to do to combat the pandemic, but once the economic recovery begins and uncertainty recedes, we will return our public finances to a sustainable and strong position.
Mel Stride (Central Devon) (Con) [V]
There are reports that the Treasury has created an economic impact analysis, providing significant detail on the effect of coronavirus across the various sectors of the economy. For each sector, this analysis allocates red, amber and green ratings for revenue, jobs and financial stability. Given the vote tonight, may I ask my right hon. Friend why that analysis has not been published?
Rishi Sunak
My right hon. Friend will have seen the analysis we did publish, which talked specifically about sectoral impact. In the document, there were specific links to the various places that people can find GVA and employment by sector and, indeed, the financial resilience of local businesses at some stages by sector and by region. It is that analysis, as we have said, that will determine the particular economic impact in an area. That information is all provided in the report for people to look at.
Felicity Buchan (Kensington) (Con)
Andrew Griffith (Arundel and South Downs) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
This Government’s economic priority remains the protection of jobs and people’s livelihoods. It is our relentless focus. To that end, we have committed £280 billion this year.
Andrew Griffith
I thank my right hon. Friend for his answer. Many businesses in Arundel and South Downs, such as hospitality, events, beauty and wedding venues, have been hit terribly hard by the pandemic. It is no exaggeration to say that the support he has offered so far has been an absolute lifeline. But as my constituents now find themselves in tier 2, with all the uncertainty and restrictions, will he continue to do what he can to protect the very enterprises this nation will need—
Rishi Sunak
My hon. Friend is right to champion his local businesses, something he knows well from his own experience. I can give him that reassurance. I know it has been a very difficult time for his small and medium-sized companies. They have my assurance that I will keep working hard to support them. He knows, better than most, that they will drive our recovery.
Anneliese Dodds (Oxford East) (Lab/Co-op)
Last week, the Chancellor said that public sector workers on less than £24,000 would be guaranteed a pay rise, but then said that they would receive a fixed increase of £250. Will he correct the record to confirm he is delivering a real-terms pay cut for many teaching assistants, prison officers and police constables?
Rishi Sunak
I stand by what I said. Those earning less than £24,000 in the public sector, 2.1 million people, or 38% of all people working in the public sector, will receive a guaranteed fixed increase of at least £250.
Anneliese Dodds
Even if no deal is avoided, we appear to be headed for a thin-as-gruel deal with the EU. The Office for Budget Responsibility says that that would lead to a long-run loss of output of about 4%. That is on top of the slowest recovery from covid in the G7, as predicted by the OECD today. The Chancellor previously said that his Government’s deal would reduce costs for ordinary working families and promised its impact would be modelled. Will he provide that modelling and is he confident that it will show that positive impact?
Rishi Sunak
I would not want to pre-empt the outcome of the ongoing talks, which I can say are constructive and proceeding with full intensity. I am very hopeful that they can reach a positive conclusion. More broadly, regardless of the exact nature of our trading relationship with our European friends and allies, I remain very confident in the economic future of our country and the opportunities that will come our way.
Damien Moore (Southport) (Con)
Rishi Sunak
I am happy to provide that information. The new national infrastructure bank will invest in projects like transport, digital infrastructure and renewable energy through a series of loans, guarantees, equity and other hybrid products. The levelling-up fund will fund what I call the infrastructure of everyday life—projects up to £20 million that can be delivered quickly—make a tangible difference to our constituents and increase the pride we feel in the places we call home.
Alison Thewliss (Glasgow Central) (SNP)
Yesterday, Scotland’s First Minister announced her intention to award a £500 thank you payment to Scottish health and social care staff in recognition of all they have done throughout the pandemic. Powers over tax allowances, exemptions and national insurance are reserved to the UK Government, so will the Chancellor do the right thing and ensure that this festive gift of good will is not clawed back by Her Majesty’s Revenue and Customs?
Alex Cunningham (Stockton North) (Lab)
Rishi Sunak
I am sure that the hon. Gentleman will listen carefully to what the Prime Minister and the Health Secretary have to say immediately after these questions, and I believe there is hope for all parts of our country as we fight against this virus. With regard to this dashboard, I would refer him to the document published, which contains a sectoral dashboard and, as I said, links to further information that people can find about the regional composition of their local economies, sectoral business resilience and employment outcomes.
Elliot Colburn (Carshalton and Wallington) (Con)
Ruth Jones (Newport West) (Lab)
Rishi Sunak
The hon. Lady raises a good point. Obviously, the news about Arcadia and Debenhams will be deeply worrying for employees and their families, and the Government stand ready to support them. With regard to various things that are ongoing, there are negotiations between various parties in the companies at the moment, particularly with regard to pensions, and it would not be right for me to comment specifically on those, but she can rest assured that we keep an eye on the situation.
Munira Wilson (Twickenham) (LD)
Rishi Sunak
I know about the difficulties that the hospitality sector is experiencing at the moment. The hon. Lady will know that the various measures she spoke about—the business rates holiday and the VAT cut—last all the way through to next spring, so they will provide support during the winter, and we have in place a grants programme that provides grants to businesses in the hospitality sector, whether they are open in tier 2 or closed, with further support provided to local authorities for discretionary support, as they see fit.
Mark Fletcher (Bolsover) (Con)
Sir Edward Leigh (Gainsborough) (Con)
Rishi Sunak
That is music to my ears. My right hon. Friend is absolutely right: this is a Government who believe in a low-tax dynamic economy. He will also appreciate that, in the midst of the crisis that we are facing, it is incumbent on the Government to provide unprecedented support to preserve the economic capacity of our country. But as soon as we get through this, I, like him, look forward to returning to that dynamic free market economy that we both passionately believe in.
Andrea Leadsom (South Northamptonshire) (Con)