Oral Answers to Questions

Rishi Sunak Excerpts

Tuesday 7th July 2020 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

What steps he is taking to support the economy during the covid-19 outbreak.

[The Chancellor of the Exchequer (Rishi Sunak)]

The Government have taken unprecedented steps to keep as many people as possible in their existing jobs, support viable businesses to stay afloat and protect the incomes of the most vulnerable. We are now carefully and safely reopening our economy.

[Dave Doogan [V]]

I have previously raised the issue of the 3 million taxpayers being excluded from Government support with the Prime Minister, the First Secretary of State and the Leader of the House, all of whom have repeated details of the Government support provided to other groups. To be clear, it is understood that 2.6 million self-employed people were supported and 9 million people were furloughed. What remains an issue, though, is the 10% of the workforce who have received no meaningful support to help navigate covid. Specifically on the 3 million excluded, will the Chancellor provide an eleventh-hour lifeline such as that provided for the arts, or is he planning to cut 3 million workers adrift? It is one or the other, and it is now or never.

[Rishi Sunak]

I have said previously that, although we have not been able to help everyone in exactly the way that they would have liked, I am confident that the breadth and scale of the interventions we have provided ensures that everyone is able to access some support. We have also strengthened our security net, with welfare through universal credit, among other things, and our self-employment scheme remains one of the most comprehensive and generous anywhere in the world.

[Margaret Ferrier [V]]

The economic impact of coronavirus has not been distributed evenly across the UK economy, yet the Scottish Government have extremely limited borrowing powers to stimulate demand and aid recovery in key sectors. A one-size-fits-all approach should no longer be the norm. Will the Chancellor bring forward the review of the fiscal framework, lift the caps on borrowing and give the Scottish Government the tools that they need to invest in Scotland’s future?

[Rishi Sunak]

My right hon. Friend the Chief Secretary to the Treasury is in constant dialogue with his counterpart, the Finance Minister in Scotland, on these issues, but the people of Scotland are able to benefit from the strong measures that we put in place for the entire United Kingdom. Whether it be our loan schemes or, indeed, our furlough scheme, everyone in every part of this country is able to benefit.

[Mr Speaker]

I call the Chairman of the Select Committee, Mel Stride.

[Mel Stride (Central Devon) (Con) [V]]

Guidance has recently appeared on Her Majesty’s Revenue and Customs website that suggests that those who take covid-19 tests, as provided by their employer, will have to treat the cost of those tests as a taxable benefit in kind, which is very unfortunate, particularly in respect of those frontline workers who may be involved. Will the Chancellor look into this matter, please, as a matter of urgency?

[Rishi Sunak]

I am delighted that my right hon. Friend has raised this issue with me, and of course we will look into it very quickly.

[Alison Thewliss (Glasgow Central) (SNP)]

To follow up on the question asked by my hon. Friend the Member for Angus (Dave Doogan), the ExcludedUK all-party group launched this morning with more than 150 Members of this House signing up as members, cheered on by the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone). Will the Chancellor tell me why he has decided that 3 million people are not worthy of support, and why will he not put something in place to protect their incomes?

[Rishi Sunak]

Everyone in this country has benefited one way or another from what we have been able to do. Although people have not been able to be helped in exactly the way they would have liked, we have been able to put in place measures unprecedented in scale and speed, and that meant we did have to make some difficult decisions to implement those policies. None the less, I do believe that, because of the measures that we have taken to strengthen our safety net, for example, everyone, no matter where they are, has access to more support than they did before this crisis began.

[Alison Thewliss]

If the Chancellor listened to the evidence from groups such as ExcludedUK, he would know that that is simply not the case. To turn to some of the rhetoric of the past few days, the Government seem to be trying to imitate the rhetoric of President Duterte of the Philippines and President Roosevelt on the new deal, but the measures do not meet the scale of either of those gentlemen’s ambitions. Does he agree with the SNP that we need a stimulus package of at least £80 billion, including a 2% cut to employers’ national insurance contributions and a reduction in VAT for the hospitality sector, as demanded by the Scottish Government? If he does not believe that those steps should be taken, will he allow the Scottish Government to have the full suite of financial powers that they require to meet that challenge?

[Rishi Sunak]

The hon. Lady talks about scale of ambition. I am proud of what this Government have put in place and the speed at which we have done so. The jobs of 9 million people have been protected through our furlough scheme; 2.7 million self-employed people have had their income supported; and millions of companies have received access to loans, grants, tax deferrals. In sum, this represents £130 billion of support—one of the most comprehensive and generous support packages available of any country anywhere in the world.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

The Chancellor knows that different sectors of our economy face very different challenges in the months ahead, so will he listen to the businesses right across our country that have called again and again for the job retention scheme to have the flexibility to meet those different challenges?

[Rishi Sunak]

On the job retention scheme, our policy is clear. We have extended the scheme all the way through to the autumn, at which point it winds down gradually and in a way that asks for very modest contributions from employers. None the less, I do recognise that different sectors have faced a different circumstances during this crisis, particularly those in the hospitality, leisure and retail sector, which is why we cut business rates for the entire year for those sectors and, indeed, provided cash grants of £10,000 or £25,000 to almost 1 million businesses up and down the country.

[Martin Vickers (Cleethorpes) (Con)]

What fiscal steps he is taking to (a) attract investment and (b) achieve economic growth in northern Lincolnshire.

--- Later in debate ---

[Rosie Cooper (West Lancashire) (Lab)]

What fiscal steps he is taking to support people unable to return to work as covid-19 lockdown restrictions are eased.

[The Chancellor of the Exchequer (Rishi Sunak)]

Through the coronavirus job retention scheme and the self-employment income support scheme, the Government have protected 9.4 million jobs and supported the incomes of 2.7 million self-employed. I remain committed to helping the unemployed return to work and supporting those who are most vulnerable to job loss. We will continue to monitor economic conditions to ensure our labour market policy response is both appropriate and effective.

[Sarah Champion [V]]

In his announcement of the self-employment income support scheme, the Chancellor told self-employed people that they have not been forgotten and no one will be left behind, but the Treasury Committee has found that more than a million people have been unable to benefit from either that scheme or the job retention scheme. That is certainly what I am finding in Rotherham. Will he commit to acting to ensure that, true to his word, no one is left to face this crisis alone?

[Rishi Sunak]

Some 95% of those who are majority self-employed are able to benefit from the self-employment scheme. In its design, its duration, the breadth of its coverage and the generosity of its support, the scheme remains the most generous and comprehensive self-employment support scheme in the world.

[Anna McMorrin]

We are facing the worst economic recession in history and a climate crisis. Despite the warm words yesterday, the green finance announcement does not go far enough. Germany is investing between £40 billion and £50 billion, France £13.5 billion and South Korea £11.5 billion, so £3 billion just does not cut it. Given that half a million 16 to 24-year-olds are currently unemployed, will the Chancellor commit to properly financing a green jobs guarantee to give our young people a future?

[Rishi Sunak]

The hon. Lady mentioned plans from other countries. It is worth bearing in mind that those plans relate to spending commitments over many years and are actually better compared with what we outlined at Budget, where we set out a £600 billion investment programme over the remainder of this Parliament, including many initiatives such as carbon capture and storage, the nature for climate fund and improvements in air quality. Conservative Members wholeheartedly believe in a green revolution, and we will provide the capital to make that happen.

[Lee Anderson]

I pay tribute to all the small business owners in Ashfield and Eastwood who have worked really hard to get ready for the reopening of their businesses last weekend in a covid-secure manner—places such as the world-famous Diamond Club, the Dog and Parrot, the Bus Stop Café, St Joseph’s Social Club and the outstanding Teversal Camping and Caravanning Club site. Although I am grateful to the Chancellor for all the financial support he has provided, does he agree that the only way to protect jobs and businesses in the long term is by safely reopening the economy?

[Rishi Sunak]

My hon. Friend is absolutely right. No support scheme can substitute for safely reopening our economy. I enjoyed seeing his Facebook page with his tour of Sutton, Eastwood and Huthwaite, and all the establishments that he mentioned—including a candle shop, I believe—and I pay tribute to all his local businesses for following the guidance and implementing safe measures so that they can welcome their local communities back with open arms.

[Bambos Charalambous]

The Government’s intervention to provide financial support to the arts is welcome, but freelance creative workers have received little or no support from the furlough scheme or the self-employment scheme for over 100 days. What specifically will the Chancellor do to correct this in the rescue package announced for the creative industries?

[Rishi Sunak]

Those in the creative arts, like others, can benefit from the self-employment scheme and other interventions that we have put in place, but it is important to know what happened yesterday: a £1.5 billion support package for our cultural institutions up and down the country, from our crown jewels—our globally recognised assets—to our local community theatres. They will all be able to benefit from the support we have put in place and preserve what is so special about our cultural heritage.

[Aaron Bell]

I thank the Chancellor for all he has done so far, and I look forward to his statement tomorrow. He mentioned unemployment, and we are aware that it is rising, so one of the most important things we can do is to get people back into work as quickly as possible. In Newcastle-under-Lyme we are benefiting from the Stoke-on-Trent and Staffordshire local enterprise partnership redundancy and recruitment triage service. Will he welcome that? There are areas where employment is growing, and if we can get people who have been made redundant into those jobs as quickly as possible, we will minimise the devastating effects of this coronavirus.

[Rishi Sunak]

My hon. Friend is absolutely right. The importance of job matching is critical and the evidence shows us that it works. I know from my time as a Local Government Minister the innovative approach that Councillor Atkins and his team on the county council and the LEP have taken to various economic initiatives. I pay tribute to them for putting this in place with such speed.

[Ms Angela Eagle]

The aerospace sector has already said that 9,000 jobs will go in the UK. The north-west is going to be specifically badly affected if the Government just sit back and allow this export-strong, high-skilled, high-wage sector to be decimated. Germany has put a big package in place. America has put a big package in place. France has put a big package in place. So what is the Chancellor going to put in place to protect and guarantee the future of the aerospace sector in the long term?

[Rishi Sunak]

The interventions in France and Germany related to specific companies, so it obviously would not be appropriate for me to comment on those in this place at this time. The support put in place in the US was primarily to support domestic connectivity. This Government have done that by subsidising considerably our bus network and our rail network to make sure that intra-Union connectivity remains through this crisis.

[Rosie Cooper [V]]

Will the Government abandon their one-size-fits-all wind-down of the furlough and self-employed schemes and adopt a targeted strategy that acknowledges that hotel workers, chefs and self-employed lighting technicians cannot and should not be treated in the same way as workers in sectors that are already back at full capacity?

[Rishi Sunak]

The most important thing for all these sectors is for them to be safely reopened. That is why I am delighted that last weekend we were able to meet the target set out in our reopening plan. The Prime Minister has spoken about reopening our remaining closed sectors in the coming weeks, which is welcome news. The hon. Lady is right that these sectors have faced hardship. That is why, as I said, they have received considerable extra support from the Government in the form of business rates holidays and cash grants.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Thousands of jobs losses have been announced in recent days, and many more are expected if the furlough scheme is withdrawn from all sectors at the same time. With young people facing the most difficult labour market conditions for a generation, and many otherwise viable businesses in trouble because of social distancing rules, does the Chancellor accept the case for employment support being aimed directly at the sectors most likely to be hit by job losses in the coming months?

[Rishi Sunak]

Those who call for a sector-specific approach are not always able to articulate exactly how they would define those sectors and also the supply chain that they serve. The most important thing is to have provided broad, generous and swift coverage to protect 9 million jobs, as this Government have done, and now to reopen these sectors so that we can get as many of those people back to work as quickly as possible to the jobs that they have.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

What fiscal steps he is taking to support landlords affected by the covid-19 outbreak. [R]

--- Later in debate ---

[Henry Smith (Crawley) (Con)]

If he will make a statement on his departmental responsibilities.

[The Chancellor of the Exchequer (Rishi Sunak)]

Four months on from the onset of coronavirus, we have slowly and carefully reopened much of our economy, and we can now begin our national recovery. Throughout this crisis, I have repeatedly made it clear that, while we cannot protect every single job, we will do all we can to make sure our businesses and people have the tools they need to get through this and emerge stronger on the other side.

[Henry Smith [V]]

To help the aviation and travel sectors recover from the negative impact of covid-19, will my right hon. Friend consider suspending air passenger duty until at least the end of summer 2021?

[Rishi Sunak]

My hon. Friend, as always, is a champion for the industry, and he knows how important it is to the UK economy. I can tell him that, at the Budget, we committed to a consultation on aviation tax reform. We remain committed to that, and will bring forward the timing in due course.

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

The Chancellor stated earlier that the job retention scheme is being wound down from the autumn. It is actually being wound down from the start of next month across all sectors at the same time, and we are already seeing the impact of that in very substantial redundancies. The Resolution Foundation called this week for a targeted continuation of the scheme for the hardest hit industries and those areas affected by additional lockdowns. The Chancellor has said he does not want to pick winners, but this health crisis has involved Governments designating losers, quite rightly, for public health reasons, so why is he persisting with the one-size-fits-all removal of the job retention scheme, when this will inevitably lead to additional redundancies?

[Rishi Sunak]

This is not about picking winners or losers. This is about protecting people’s health, and where it is incumbent on the Government to step in and make sure that we can protect people’s health through targeted intervention, that will remain the right thing to do. With regard to economic support, my right hon. Friend the Health Secretary has made it clear that support has been provided to the local council when this has been the place to do so. With regard to the furlough scheme, we are of the belief, rightly, that this is a universal scheme, it is generous, it has been extended to October and it is winding down in a gradual and temperate manner.

[Anneliese Dodds]

I have to say that it is disappointing to hear that the Chancellor is not budging from this position. As mentioned, it is already leading to additional waves of redundancies—avoidable redundancies in many cases. Labour has repeatedly called on the Government to match the ambitions of Labour’s previous future jobs fund in developing support for unemployed young people, so may I ask the Chancellor why, put together, the traineeship fund and green jobs challenge fund—just announced—amount to less than a quarter of the size of the future jobs fund? That hardly reflects a focus on jobs, jobs, jobs.

[Rishi Sunak]

I am not quite sure that is right. In reality, the future jobs fund was around £1 billion. We announced yesterday the £2 billion green home grant to provide home efficiency upgrades for hundreds of thousands of homes and create tens of thousands of jobs up and down the country. Not only will households save money on their electricity bills and save carbon, but we will create good local jobs in the process.

[Laura Farris (Newbury) (Con)]

From a health perspective covid-19 disproportionately affected the old, but from an economic perspective the risks are greatest for the young, in terms of both lost employment opportunities and potentially a future higher tax burden. What reassurances can my right hon. Friend give that the economic prospects of young people will be his priority in the future recovery?

[Rishi Sunak]

My hon. Friend is absolutely right: young people are more likely than not to work in affected sectors and more likely than others to be furloughed, and we know from all the evidence that the impact of scarring on young people is very significant, which is why they remain uppermost in my mind. I give my hon. Friend the reassurance that they will be prioritised as we think about our recovery and our labour-market interventions.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]]

The Tea Bay in Cambuslang in my constituency responsibly took out business-interruption insurance, including cover for notifiable diseases. The one time it has had to claim is during the coronavirus pandemic, but that claim has been refused because covid-19 is not on the list of notifiable diseases.Many other businesses have found themselves in the same position and understandably feel frustrated that insurers have not helped them in their time of need. What discussions is the Treasury having with the Financial Conduct Authority to remedy this situation?

--- Later in debate ---

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

We all know that there are huge problems in culture and theatre. The Hackney Empire has served residents in Hackney for 120 years and the Graeae theatre company in my constituency works with disabled artists. It is great that there has been an announcement about support, but if we do the maths, we see that quite a lot of organisations need that money. The Secretary of State for Digital, Culture, Media and Sport has talked about supporting the main gems; when will local theatre companies know how much money they are going to get, and when will they get the cash?

[Rishi Sunak]

I am glad that the announcement we made yesterday was warmly welcomed across the cultural sector, by institutions large and small. I can assure the hon. Lady that the support package is not just for large institutions; it will find its way to all our local cultural institutions that play such an important part in our local communities. The Culture Secretary and his team will be here just after Question Time to answer further questions.

[Chris Grayling (Epsom and Ewell) (Con)]

I thank the Chancellor for yesterday’s welcome announcement, but will he bear in mind the freelancers and those in other forms of employment in the sector who continue to struggle as he plans for tomorrow’s statement and beyond? We also need to move ahead with a green recovery, so will he consider providing additional incentives to develop hydrogen infrastructure in this country? I do not believe that we can achieve our emissions objectives with battery technology alone; we will need hydrogen vehicles as well. The Government really need to do a lot to encourage the development of such infrastructure

[Rishi Sunak]

I wholeheartedly agree with my right hon. Friend that we should put reaching our net zero commitments at the heart of our recovery. He will have heard our recent announcement about green homes grants, which shows our commitment in this area. I know that he has a lot of experience in hydrogen transportation, and I look forward to hearing his thoughts on that so that they can be incorporated into our future plan.

[Karin Smyth (Bristol South) (Lab)]

More young people need a college place. More young people need help with catching up. More adults need retraining. City of Bristol College and colleges such as St Brendan’s Sixth Form College in Bristol are perfectly placed and ready to help, but the Chancellor needs to help them. Will he commit to extending the covid £1 billion to post-16 catch-up, and will he commit to ensuring that every 16 to 19-year-old has a funded place at a college from September?

[Rishi Sunak]

I agree with the hon. Member about the importance of post-16 education and further education, which is why I was delighted to announce at the Budget a £400 million increase in post-16 education funding, a record increase in per-pupil funding compared to the last several years, and indeed the Prime Minister has talked about our commitment to upgrading the entire FE college estate across the United Kingdom.

[Dr Kieran Mullan (Crewe and Nantwich) (Con)]

May I, on behalf of all my constituents who have contacted me about this, thank my right hon. Friend for listening to organisations such as the Lyceum Theatre in Crewe and coming up with this vital £1.57 billion package for arts and culture? What might the timetable be for making these crucial funds available?

[Rishi Sunak]

I know that my hon. Friend is a proud champion of his local theatre, the Lyceum in Crewe, and that he has warmly welcomed our announcement. The Culture Secretary and his team will be here just after Question Time. We share his ambition to ensure that the support reaches all relevant institutions as quickly as is prudently possible.

[Kate Osamor (Edmonton) (Lab/Co-op) [V]]

Credit unions are known for offering those on low incomes alternative access to credit. However, due to covid-19, during April and May North London Credit Union in Enfield was hard hit and has seen an 87.5% fall in the number of loans issued. Will the Chancellor use his summer statement to announce financial support for credit unions, which are challenged with branch closures and possible bankruptcy?

--- Later in debate ---

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

It has been a pleasure to meet the young entrepreneurs in Hull. Many of these young people faced great adversity before setting up their own businesses, but they have had no income, no support and no grants from the Government. Have these young people been forgotten?

[Rishi Sunak]

These young people have absolutely not been forgotten, and we remain indebted to them for their dynamism in helping to power our recovery. I am delighted that our start-up loans scheme has recently been expanded and is able to provide cash loans to those budding entrepreneurs in her constituency and others. I urge them to have a look at it to see whether it will help fund their plans.

[Mr Speaker]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for five minutes.