Covid-19: Economy Update

Robert Largan Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

When we outlined the original job support scheme, it was actually very warmly welcomed not only by various business groups, including the CBI, the Federation of Small Businesses and the chambers of commerce, but by the trade unions, because everyone at that moment recognised that it was a significant and generous intervention to protect the jobs and livelihoods of the British people. But the situation has changed. The health restrictions are having an impact, particularly in the hospitality sector, which the hon. Member for Oxford East (Anneliese Dodds) mentioned. That is why we have taken the steps that we have today. We are providing the certainty that she asked for, as this scheme will last for at least six months through to next spring. There is certainty over that. The grants we have outlined today will work on a monthly basis for as long as businesses are either in tier 2 restrictions or are closed under tier 3. Businesses can plan on that basis.

With regard to the Barnett consequentials, the Government will always ensure that people will benefit from this support wherever they are living in the United Kingdom. That is why we have provided an up-front guarantee to devolved nations worth £14 billion, which will help them also to plan at what is, I understand, a difficult time for everyone.

[Robert Largan (High Peak) (Con)]

I am really pleased that the Chancellor has listened and shown that this Government will always support the north. I am delighted that these tier 2 retrospective measures, such as the expansion of the job support scheme and the business grants, will make a massive difference to people living in Glossopdale in my constituency who have been under tier 2. On the business grants, may I urge the Chancellor to make certain that the money and the guidance on how that money can be used is made available to councils as soon as possible so that the businesses who need it can get it urgently and help to save jobs?

[Rishi Sunak]

My hon. Friend has been right to champion the situation for his local businesses. I know that they will warmly welcome this. I can give him the assurance that we will work as quickly as possible to provide the guidance. As I said, the grant value will be calculated on the number of hospitality, leisure and accommodation business premises, scaled by their rateable value. Added to that will be a 5% discretionary top-up, and then the local authority can use its discretion to allocate the money as it sees fit for its local area.