Rishi Sunak
Main Page: Rishi Sunak (Conservative - Richmond and Northallerton)Department Debates - View all Rishi Sunak's debates with the HM Treasury
Oral Answers to Questions
Rishi Sunak Excerpts(4 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Afzal Khan (Manchester, Gorton) (Lab)
What plans he has to provide additional economic support to areas affected by local covid-19 restrictions; and if he will make a statement. [907779]
The Chancellor of the Exchequer (Rishi Sunak)
Earlier this month, I announced that businesses forced to close as a result of local restrictions will be eligible for a grant of up to £3,000 a month. Their employees will be protected through the expanded job support programme and councils will receive extra resources to help with local track and trace, enforcement and compliance.
Andrew Gwynne [V]
All that Greater Manchester is asking for is proper financial support for our businesses, our self-employed and our lowest paid after 12 weeks of failed lockdown measures and as we face many more uncertain months ahead. When the Prime Minister is reported as struggling to live on his £150,000 a year salary, how does he think the lowest paid in Greater Manchester will cope on two thirds of national minimum wage? Last night, the Secretary of State for Housing, Communities and Local Government offered just £22 million for a city region of 2.8 million people. That is less than the £25 million he granted to his own town centre. Why do this Government hate Greater Manchester?
Rishi Sunak
It is disappointing to hear the hon. Gentleman’s tone. It is obviously a very difficult time for many people in this country as we evolve our response to this virus, but what we need is people acting in a constructive spirit, and that is what my right hon. Friend the Communities Secretary is actively offering to do. I hope those conversations are happening as we speak.
Greater Manchester is being treated exactly the same as every part of our United Kingdom. These are national support schemes that have been put in place that help the most vulnerable in our society. The hon. Gentleman raised a number of questions. As he will know, there are national schemes to protect businesses, to protect employees and to provide support to his local authority.
Mrs Lewell-Buck
Repeated local lockdowns with no end in sight are killing our economy in South Shields. In the past lockdown, we received £26 million of support. I have been advised that the financial package offered to us this time, should we end up in tier 3, would be just over £1 million. Can the Chancellor confirm or deny that insulting amount?
Rishi Sunak
I am glad the hon. Lady recognises the economic damage that lockdowns do, which is why, when we had this debate last week, I did pose the question as to why the Opposition were suggesting a national lockdown with no end in sight without commenting on the damage that would do to people’s jobs and livelihoods. With respect to support for local authorities entering tier 3, as I have set out there is a national funding formula that provides a per capita amount to the local authority of up to £8 per head at the highest tier to provide support for local enforcement, compliance and track and trace. On top of that, there is support that the national Government provide for businesses that are closed. Their employees can be put on the job support scheme, and, in addition, my right hon. Friend the Communities Secretary can talk to local authorities about providing bespoke extra support as required.
Afzal Khan [V]
People and businesses in my constituency and across Greater Manchester are suffering. They are facing an uncertain winter with insufficient support. Last night, the Government offered just £22 million to the 2.8 million people in Greater Manchester. That comes to just £8 a head to support local people and businesses during the months ahead. Other areas were given double that amount, despite having just half the population. Does the Minister seriously believe this is a fair deal for Greater Manchester, and, if so, would he like to take this opportunity to apologise to those Mancunians who will lose or have already lost their livelihoods?
Rishi Sunak
With the greatest respect, the hon. Gentleman is mistaken in his characterisation of the support provided and confusing two different things. He is absolutely right: the support is £8 a head. That is the national funding formula that is provided to all local authorities entering tier 3. That is the same as is provided in Lancashire and indeed, in the Liverpool city region, and that is the amount that he refers to, which is done on an equitable basis for all local authorities. The additional amounts he talks about were reached in negotiation with my right hon. Friend the Communities Secretary and representatives of the Government. That offer remains available to Greater Manchester, and that is why I hope they engage in these negotiations constructively.
Mel Stride (Central Devon) (Con) [V]
My right hon. Friend has done a great deal to support jobs in our country, but he will know that lockdowns destroy jobs and lead to increased mental illness and a smaller economy that for many years will be less able to look after our most vulnerable. Does he agree that the Government should come forward urgently with a comprehensive review of the impact of lockdowns, not just in terms of epidemiology and the effect on the NHS, important though that is, but in terms of the economy, businesses, jobs and the country’s social wellbeing?
Rishi Sunak
As ever, my right hon. Friend makes an excellent point. He is right about the damage to not only non-covid health outcomes but people’s jobs and livelihoods and the long-term damage that that will cause to all our health outcomes. With regard to projections, he will know that both the Office for Budget Responsibility and the International Monetary Fund project 3% scarring, which will mean our economy potentially being £70 billion to £80 billion smaller in the future than it otherwise would have been. As he rightly says, that will obviously have an impact on our ability to fund public services and protect people’s jobs and livelihoods.
Anneliese Dodds (Oxford East) (Lab/Co-op)
Last week, when the Prime Minister was asked whether a circuit breaker is likely, he said, “I rule out nothing”. Does the Chancellor rule it out—yes or no?
Anneliese Dodds
That appears to be slightly different from the message we received from the Chancellor last week. This morning, a member of the Monetary Policy Committee stated that
“the bulk of spending reductions are due to restrictions that people voluntarily impose on themselves”,
and that
“higher virus prevalence is associated with weaker economic performance.”
Research suggests that not undertaking a circuit breaker now could cost our economy an additional £110 billion—that is based on IMF figures, by the way—due to changes in behaviour that people make to avoid contracting the virus and the knock-on impact of those on economic output. What is the Chancellor’s estimate of the cost of not undertaking a circuit breaker and continuing with this rolling programme of regional restrictions?
Rishi Sunak
The hon. Lady talks about rolling programmes. It is clear that the Labour party believes that we should have a rolling programme of national lockdowns. That would be enormously damaging for people’s jobs and livelihoods, causing unnecessary pain and suffering in parts of the country where virus prevalence is low. A localised approach is the best approach.
Alison Thewliss (Glasgow Central) (SNP) [V]
We are not in a significantly different public health position now from when the Chancellor announced furlough on 20 March. Pubs and restaurants and hospitality venues are being asked to close, but this time, he is leaving people with significantly less support. Will he take action today to extend the furlough scheme, to ensure that people are protected and that those who have lost out and been excluded from support can be included this time?
Rishi Sunak
We have announced the job support scheme, which will take effect on 1 November, following the closure of the coronavirus job retention scheme. Those who are working in closed businesses can be placed on that scheme and receive 67% of their wages—an amount comparable with all our European peers—at very little, if no, expense to the employer, helping them to protect those jobs.
Alison Thewliss
Sixty-seven per cent. of wages for people who are on minimum wage jobs—the lowest paid in our society—is simply not good enough and gives them absolutely no incentive to self-isolate and stick to the rules. The Scottish Government have announced a grant of £500 for the lowest paid, but the UK Government may swipe that back and pick the pockets of the poorest in taxation. Will the Chancellor go further than he has so far and exempt that £500 grant to the poorest in our society from taxation?
Rishi Sunak
The hon. Lady talks about the Scottish Government introducing a £500 grant. It was the UK Government who introduced a £500 grant and provided Barnett funding for the Scottish Government to do the same. She is right that the grant payment is there to help those who are most vulnerable, so that they can isolate, and it provides an incentive for them to do so.
Dr Kieran Mullan (Crewe and Nantwich) (Con)
What fiscal steps his Department is taking to support businesses affected by the covid-19 outbreak. [907760]
Naz Shah (Bradford West) (Lab)
What proportion of jobs his Department estimates will be supported through the Government’s Job Support Scheme. [907780]
The Chancellor of the Exchequer (Rishi Sunak)
Over the course of the coronavirus job retention scheme, more than 9 million jobs were protected through the furlough scheme. The job support scheme that replaces it will come into force on 1 November. Of course, it is impossible to predict today how many people will benefit. That will depend on the exact path of the virus and the restrictions in place.
Zarah Sultana
Since March, unemployment has doubled in Coventry South. The Government are replacing furlough with the utterly inadequate job support scheme. Research from the Institute for Public Policy Research found that, of the 2 million jobs at risk, it will save only 10%. Where it is used by businesses that are required to close, two thirds of wages is simply not enough for low-paid workers. Is the Chancellor happy to see 1.8 million jobs go? Could he live on two thirds of the minimum wage? If not, he should extend the furlough scheme for the industries that desperately need it.
Rishi Sunak
When we announced the job support scheme, it was, in fact, warmly welcomed by several business groups and trade unions, with which I was happy to work in designing the scheme. I take the issue of jobs very seriously; it remains my highest priority. Although I cannot protect every single job, we will throw absolutely everything we can at protecting, saving and creating as many jobs as possible, which is why we have a comprehensive plan for jobs. The job support scheme is just one element of that. Indeed, I am pleased to say that the kickstart scheme is shortly due to launch, which will provide hope and opportunity to hundreds of thousands of young people.
Naz Shah
A report published this week by the political consultancy WPI Strategy, commissioned by Tesco, ranked Bradford West at No. 3 in its need to be levelled up. Last week, another report found that my constituency has the highest rise in the rate of child poverty in Yorkshire and Humber. The Chancellor will be well aware that it also ranks seventh highest in the country for unemployment. With all that going on, and having been under local restrictions for almost three months, I ask the Chancellor whether he feels that Bradford West can afford any more job losses and whether he believes that it is in need of targeted support from the Treasury.
Rishi Sunak
In Bradford and elsewhere, we would not like to see any job losses, but the reality is that what is happening to our economy means that, sadly, many people—almost three quarters of a million—have already lost their job and many more will. That is why our comprehensive plan for jobs aims to protect, support and create jobs in every part of our United Kingdom. That will provide hope and opportunity to people, whether it is the kickstart scheme, as I mentioned, or the opportunity for new training and skills delivered through the Prime Minister’s announcement of a lifetime skills guarantee.
Imran Ahmad Khan (Wakefield) (Con)
What fiscal steps he is taking to support people on low incomes during the covid-19 outbreak. [907775]
Jacob Young (Redcar) (Con)
If he will make a statement on his departmental responsibilities. [907821]
The Chancellor of the Exchequer (Rishi Sunak)
This Government have put in place a £200 billion programme of support to help jobs and businesses throughout this crisis. Although we will not be able to save every job or business, we remain committed to doing what we can to protect the economy and people’s livelihoods at this difficult time.
Jacob Young
This Government have taken extraordinary steps to protect the economy and now we must take the extraordinary steps to unlock it. Uncertainty stemming from coronavirus and the volatility of the oil price is leading to delayed investment in the Tees Valley. One thing that could break the deadlock in that investment would be the announcement of a free port in Teesside. Will my right hon. Friend assure the House that he will not delay the roll-out of 10 new free ports? Does he agree that a free port in Teesside could lead to thousands of new jobs for my constituents in Redcar and Cleveland?
Rishi Sunak
My hon. Friend—like my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) and the Mayor of the Tees Valley, Ben Houchen—is a fantastic champion for the free ports agenda. They are all absolutely right: this policy can unlock investment and growth, and therefore create jobs in parts of our country that want to see that growth. I can assure my hon. Friend that I look forward to receiving the bid that, no doubt, he and his colleagues are putting together for us.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
I am sure the Chancellor will agree that confidence will not return to our economy until we are able to control the virus with an effective test, trace and isolate system, yet the current system is not working and was described by the Scientific Advisory Group for Emergencies as having a “marginal impact” on transmission. Will he explain why, although he has funded the system generously, it is failing so badly?
Rishi Sunak
I am glad that the hon. Lady recognises that we have provided substantial funding for the test and trace system. Although there have been times when we would all have wished that the response would be faster—that is indeed what is happening now—it is worth bearing in mind how far we have come since the beginning of this crisis, when 10,000 or so tests a day were being done. We are now marching towards our target of half a million daily tests. That is enormous progress and it will make a difference in our ability to suppress the spread of this virus.
Bridget Phillipson
In March, the Chancellor was clear that if people could not earn a living by going out to work, it was the Government’s job to step in, “whatever it takes”. By July, he was moving away from that belief and today he has moved so far that his employment support schemes have more holes than a Swiss cheese. Will he tell the House: was he wrong in March or is he wrong now?
Rishi Sunak
I did say we would do what it takes, and I think that £200 billion pounds later, with almost 9 million jobs protected, we see the evidence that we have done. We will continue to do what it takes to protect this economy and people’s livelihoods.
Mr John Baron (Basildon and Billericay) (Con) [V]
The Government’s economic support packages have been some of the most generous anywhere, and they have been essential sticking plasters from which many of our constituents have benefited. However, given that covid may be with us for some time and that the economy is in transition, may I encourage the Government to think more strategically and perhaps draw lessons from, for example, Margaret Thatcher’s enterprise allowance scheme, which helped hundreds of thousands of people, over some years, to transition from unemployment to self-employment? [907822]
Rishi Sunak
My hon. Friend makes an excellent point. We should have an eye on our recovery and he is absolutely right that entrepreneurship can play an important part in driving that recovery, which is why during the crisis we announced the future fund to help to provide financing for start-up entrepreneurial companies. I am also happy to have a look at the enterprise allowance scheme. My hon. Friend will be aware of the start-up loan scheme, which does something similar by providing Government-discounted and funded loans to the budding entrepreneurs of tomorrow.
Ian Byrne (Liverpool, West Derby) (Lab)
The £63 million of funding for emergency assistance grants for food and essential supplies is due to run out at the end of the month. The funding has been a vital lifeline for our community in Liverpool which, thanks to Liverpool City Council, has an effective local welfare-assistance scheme to support people who face destitution. Our region is now faced with tier 3 measures, which makes the funding even more crucial. Will the Chancellor tell the House what discussions he has had with the relevant Secretary of State about extending that essential funding? [907820]
Rishi Sunak
The hon. Gentleman will know that, as a result of Liverpool entering tier 3 restrictions, those conversations have happened with representatives from the Government and the Secretary of State for Housing, Communities and Local Government to ensure that Liverpool gets the resources it needs to provide extra compliance enforcement and, indeed, extra funding to provide support for businesses and people during what is, I appreciate, a very difficult time for his constituents.
Mrs Sheryll Murray (South East Cornwall) (Con)
Last week, I formally named the e-Voyager in my home village of Millbrook. The e-Voyager is the UK’s first seagoing electric ferry and will operate from Cremyll, near Mount Edgcumbe country park. Will my right hon. Friend look at investing further in South East Cornwall, where we have this proven expertise? [907823]
Christian Wakeford (Bury South) (Con)
The events industry and conference sector have been among the sectors hardest hit by the pandemic outbreak and have been told that they will not be assessed until March 2021. Given that they will have an anticipated 15 months with little to no income, will my right hon. Friend advise what support packages are available to support businesses such as Hirex and Exceed in Radcliffe in my constituency? [907824]
Rishi Sunak
My hon. Friend is absolutely right that there are businesses that are experiencing a difficult time, especially in the sectors he mentioned. Our comprehensive set of interventions, whether loans, grants or business-rates holidays, will all provide help in different ways, but the most important thing that we can all focus on is supressing the spread of the virus and unlocking those parts of our economy that are unable to function. That is the surest and only way, in the long run, to protect the jobs that we all care about.
Paul Holmes (Eastleigh) (Con)
The Minister or Chancellor will know that tax-free shopping is a major source of income for airports such as Southampton airport in my constituency. With the ongoing problems for the sector caused by covid, that income is even more important, so will the Chancellor or a Minister meet me and representatives from Southampton airport to discuss the continuation of tax-free shopping, which is a valuable lifeline for our struggling aviation industry? [907825]
Ruth Jones (Newport West) (Lab)
The covid-19 pandemic has had a devastating impact on the income of medical research charities, which could jeopardise progress in discovering new ways of preventing, diagnosing and treating diseases and their risk factors such as air pollution. Given this risk to medical research, what consideration has the Treasury given to the proposal of the Association of Medical Research Charities for a life science charity partnership fund? [907843]
Rishi Sunak
The hon. Lady will know that this Government remain absolutely committed to our ambitious plans to double research and development funding over the course of the next few years. We have made enormous progress on that this year, with a huge and, I think, unprecedented increase in R&D funding that goes not only to basic science research, which she talked about, but ensures that we can develop that research into actionable ideas that benefit people and create jobs. She can rest assured that that remains an important aim of this Government, to ensure that this is the best place in the world in which to research.
Aaron Bell (Newcastle-under-Lyme) (Con)
The Energy Research Accelerator brings together nine midlands research-intensive organisations, including Keele University in my constituency of Newcastle-under-Lyme. With its initial Government funding, it secured 23 new research facilities, £120 million of industrial funding and £450 million of total value added in new investment in energy research and development. Will my hon. Friend praise the work that it has done and look favourably on its submissions seeking further funding to build on those successes to deliver on this Government’s commitments both to net zero and, of course, to levelling up? [907830]
Mr Speaker
Order. Chancellor, I have cut the hon. Gentleman short. I have done you a favour; now, do not take advantage.
Rishi Sunak
Thank you, Mr Speaker. Obviously, the hon. Gentleman raises a similar point to my right hon. Friend the Member for New Forest East (Dr Lewis)—in a co-ordinated attack. Such businesses have not been ignored. I appreciate that they are treated slightly differently from the hospitality businesses which they serve, but, for the reasons that the Chief Secretary to the Treasury set out, it is tricky when there are businesses involved in the supply chain. The hon. Gentleman talked specifically about the business in his constituency facing reduced demand. The job support scheme is specifically there for businesses that are open but facing a reduced demand. That will allow them, rather than making redundancies, to receive a wage subsidy from the Government to help top up those employees’ wages. I hope that the company will look at that.
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 three minutes.