Protection of Jobs and Businesses

Rob Butler Excerpts

Wednesday 9th September 2020 Commons Chamber

[Nickie Aiken (Cities of London and Westminster) (Con)]

The Government’s vital support for businesses and jobs across the country throughout this crisis has been unprecedented. In my constituency, we have seen 11,800 jobs protected under the job retention scheme, £9.1 million of support for the self-employed, over £440 million of bounce back loans for small businesses, £89 million of business grants and 849,000 meals discounted—I am only responsible for a couple of them—thanks to the brilliant eat out to help out scheme.

Despite that much-needed support, central London is still struggling. Pre covid, over 600,000 commuters came into Westminster every day to work, with another 500,000 in the City of London. The local economy relies on those workers spending in small shops and independent cafés and restaurants, but they are not coming back in the same numbers. Central London is the economic powerhouse of UK plc, driving forward this Government’s levelling-up agenda, and it is usually the first out of the traps following a recession or downturn. Sadly, this time, it looks like we will be one of the last. That is why I have produced a plan, which the Government may wish to consider, that could help to protect jobs and businesses not only in my constituency but across the country.

The furlough scheme has secured hundreds of thousands of jobs in the west end. I appreciate the reasons why the Government are bringing the scheme to an end next month, which we must do to sustain our public services. As the MP for theatreland, I want to ensure that we protect theatres even more. I welcome the Government’s £1.5 billion cultural support package, but I hope that we can keep theatres open when they come back in the new year, and a bit more help for them would be welcome.

[Rob Butler (Aylesbury) (Con)]

Does my hon. Friend agree that the arts and arts venues are important all over the country and that small venues such as the Queens Park Arts Centre in my constituency are also incredibly valuable and have benefited greatly from the Government’s scheme?

[Nickie Aiken]

My hon. Friend is right, and that is why I welcome this brilliant £1.5 billion package.

I welcomed the Chancellor’s announcements in March about a review of the business rates scheme, the £25,000 grant and the freezing of business rates, but I would welcome that freeze being extended for another 12 months. Another measure that the Government could introduce, which would bring in much-needed tax receipts, is an extension of the retail export scheme for EU visitors, allowing them to shop tax-free from 1 January. Such a tax reform could be worth up to £1.4 billion in additional annual sales. While 80% of tax-free shopping in the UK is done in my constituency, that would still have an impact on the UK as a whole.

Finally, adding two hours at the end of Sunday trading, extending it from 6 pm to 8 pm, would provide a major boost to the economy. While I appreciate that this is quite controversial for some of my colleagues, I would like to make it clear that I am only calling for this at the moment for international designated areas such as Knightsbridge and the west end. I am sure that there would be a knock-on effect for bars and restaurants as people decide to travel to central London later and enjoy a meal and drinks once the shops close.

We must ensure that London is seen to be open to the world so that it can continue to compete with other global cities such as New York, Paris and Tokyo. I ask the Government to consider the measures that I have suggested, to protect both London’s position as a global cultural hub and the UK’s standing as a major business and visitor destination, safeguarding millions of jobs and livelihoods across the nation. I look forward to supporting the Government as they continue to support jobs and businesses as the situation develops.

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[Taiwo Owatemi (Coventry North West) (Lab)]

I have spoken passionately in this Chamber about the impact that the coronavirus pandemic is having on the livelihoods of my constituents. Ensuring that no one is left behind should be at the heart of the Government’s response to this economic crisis. As the MP for Coventry North West, it is my job to come to this place and secure the very best deal for my constituents, my neighbours and my community.

It is my contention that we are unprepared for the impending disaster that awaits people on the furlough scheme across the country and in Coventry North West. The scheme is masking the true extent of the unemployment crisis to come. We do not yet know what the furlough scheme has protected us and our constituents from. The Government put in place a scheme to ensure that jobs were protected, in the hope that our constituents would also be protected. However, the indiscriminate and premature severing of the furlough support scheme will leave the businesses in my constituency bereft and possibly at risk of bankruptcy.

Let me lay bare some sobering facts and statistics. Since my last speech in this place, I have learned that in my constituency the number of claimants for unemployment benefits has risen to 4,780, some 3,500 people are seeking help from the self-employed income support scheme, 17,000 people are on furlough and 7,600 jobs are in the high-risk category for unemployment. We have seen job losses at large, small and medium-sized businesses in Coventry—from Rolls-Royce to Ikea and many family businesses. The figures will hit the roof if the furlough scheme is not extended and better planning not put in place.

[Rob Butler]

The hon. Lady is telling us how she would very much like the furlough scheme to be extended; would she, by contrast to those on the Labour Front Bench, like to tell us for how long she believes the scheme should be extended?

[Taiwo Owatemi]

The furlough scheme should be extended for as long as the country and my constituents need it to be extended.

Why are this Government so comfortable with putting businesses and my constituents’ livelihoods at risk? With the threat of a second lockdown and the potential for other local lockdowns, surely it just is not worth the risk. Alternatively, rather than ending the furlough scheme completely, have the Government sought to reform it so that it continues to support jobs in the worst-hit sectors and targets aid to struggling industries—something Labour is fighting for in its five-point plan? We are also demanding that if and when people do return to work, they are in a safe environment and protected against the disease.

The Government would do well to heed our call to fight for jobs, bring back our businesses, leave no one behind, keep workers safe and drive job creation. There is no room for stubbornness in a crisis like this. The Chancellor needs to think creatively, be more flexible and target support to protect jobs in the hardest hit parts of the economy.

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

The purpose of today, and the theme of so many of the contributions that we have heard, is the need—now so desperately urgent—for the Government to change course and move away from a one-size-fits-all approach. To secure a better future for working people and businesses across our country, we need a targeted extension of the furlough arrangements for the sectors that face the biggest challenges in the months ahead. So many Labour Members have raised their constituents’ concerns. Although time constraints mean that it is not practical for me to name them all, the House will have heard their call, and Labour’s call, for the Government to change course.

We have also heard from many Government Members. Some Conservative Members have been prepared to say on the airwaves that Ministers should think again, and we heard from the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) about that today. However, with so many jobs at risk and so many sectors in trouble, I find it extraordinary to witness such a level of complacency, from so many of the Conservative Members who are here today, about so many jobs in parts of our economy that face very difficult months ahead.

We have had a lot of statistics today, but we can have some more. In Burnley, there are 3,050 jobs in sectors hard hit by the pandemic, across aviation, manufacturing, restaurants and car manufacturing; in Bury North, there are 2,420 jobs in restaurants, pubs and clubs, hospitality and tourism; in Keighley, there are 3,700 in restaurants, pubs and clubs and childcare; and there are so many more. People in all those constituencies, and people in similar sectors in constituencies across our country, will wonder why the Government simply do not seem to want to listen.

[Rob Butler]

May I ask the hon. Lady for one more statistic? How many months or years does she feel the furlough scheme should be extended for?

[Bridget Phillipson]

It is always a delight to hear from Conservative Members who think that the Opposition should make those kinds of decisions. My hon. Friend the Member for Oxford East (Anneliese Dodds), the shadow Chancellor, has set out very clearly that we will work with Government to design a scheme that can be targeted more at the sectors of our economy that are in trouble, but only Ministers have access to all the data that can best point us to how the scheme could properly work.

Internationally, we are an outlier in our response. We are far from through this crisis, and it would be a mistake to pull away support prematurely. Doing so will damage our economy in the long run and hit world-leading sectors of our economy. We should not make that mistake, and we urge Ministers to work with us and to think again.

It is not just the Labour party that is urging the Government to change course and provide for such a targeted extension; the TUC and the CBI take the same view, and we even hear from The Daily Telegraph that it is far too soon to be ending furlough. Indeed, with every passing day, it is becoming harder to find people—apart from Conservative Members—outside No. 11 Downing Street who believe that the Treasury has got this right.

Aside from the furlough extension, the Minister has again shirked the opportunity to address the gaps in the schemes. The shadow Chancellor has consistently pressed the Chancellor for support for those who, through no fault of their own, have fallen through the gaps of the schemes that were designed to provide employment support—the excluded. Perhaps they are employees who were changing jobs. Perhaps their business has a high street presence that does not qualify for rate relief. Perhaps they have only this year moved from employment to self-employment. Perhaps they are in one of those situations and their partner is in another.

We understand that these are difficult decisions to get right, but the Government have had six months. Today we heard yet again the same reply about what they mean to do for those people. They have done nothing, they are doing nothing and they propose to do precisely nothing. In the years ahead, Conservative Members may discover that many of their electors have longer memories than they would like.

None of these arguments is one to which the Opposition have come lately or had a belated conversion. Quite the contrary; inside and outside this House, we have spent months calling on the Government to fix the shortcomings in their schemes. The shadow Chancellor has been absolutely clear that we are more than willing to work with the Government, with businesses and with trade unions to get this right.

I will not be able to quote every remark, because time is limited, but I will remind the House how often, and for how long, we have urged the Government to get a grip, change course and, above all, bring in a targeted extension of furlough. On 19 April, the shadow Chancellor said: 

“Our main concern right now is that a number of those programmes are not fulfilling the promise that has been placed on them”

On 20 April, I said that the date set for the introduction of the scheme still set aside many workers. On 3 May, my right hon. Friend the Member for Doncaster North (Edward Miliband), the shadow Business Secretary, urged a second wave of support, including where necessary an extension of the furlough scheme. On 12 May, the shadow Chancellor warned again of our concerns, and again on 23 May. On 30 June, my hon. Friend the Member for Oldham West and Royton (Jim McMahon), the shadow Transport Secretary, was already drawing attention to how often we have been making this point:

“Labour has consistently called for an extension to the furlough in the most impacted industries”.

On 15 July, the Leader of the Opposition made the same points to the Prime Minister, warning that

“the decision…not to provide sector-specific support to those most at risk could end up costing thousands of jobs.”—[Official Report, 15 July 2020; Vol. 678, c. 1509.]

On 28 July, he added:

“We need a targeted extension of the furlough scheme for the hardest-hit sectors and proper support in place to help those who are unemployed back into work.”

It is not simply the Opposition who believe that a targeted scheme would be better value for money. The Government’s own civil servants required ministerial direction before pursuing the Chancellor’s poorly targeted job retention bonus. The Chancellor himself has accepted that there will be a deadweight cost that might stretch into the billions, yet the amendment in his name today suggests that any deviation from existing Government policy will cause damage to the UK economy. The self- confidence is breathtaking. Does the Chancellor really believe that his Government have got everything right? It is a pity that he has not graced us with his presence today to make that argument himself. The language of infallibility is not helpful to families who fear for their jobs. Persistence may be a virtue; obstinacy in the face of all evidence is not.

The frustration that people in this country feel at the Government’s refusal to listen, understand and engage is growing all the time. The Government amendment is clear that the man in Downing Street knows best. That is not the sense shared by many businesses and workers right across our country. People do not expect handouts, but they do expect fairness. They expect that in their hour of need the Government will not abandon them, their families or their businesses. The Chancellor has shown all summer that he is not prepared to engage with the concerns of businesses in sectors facing the toughest challenges now and in the months to come.

But what matters is not the Chancellor’s persistence in sticking to decisions made in March. What matters most is a secure future for Britain’s firms and Britain’s families. Today we have again seen the Chancellor’s stubbornness holding Britain back—holding back our people and holding back our economy. It is not too late. I urge Conservative Members, especially those who have only recently arrived in this place, to think of the conversations that they must have had, as I have, with local businesses worried about the months ahead and with families fearful for their jobs, and to back this motion.