Economic Update

Sarah Olney Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

Of course, we take the advice of the chief medical officer in this regard and we will continue to do so. We have been absolutely clear that the NHS will get whatever support financially it needs from the Government to help get us through what will be a very challenging time. We are considering all measures to increase the capacity of the NHS to respond to this, and indeed provide the support to those on the frontline who are going to deal with a very difficult few months.

[Sarah Olney (Richmond Park) (LD)]

I obviously welcome the Chancellor’s commitment to making sure that jobs are saved and that people can stay in work, but I wonder whether he agrees that by structuring his package around loans rather than grants, he actually loses some control over what the money is spent on. Therefore, he cannot be certain that the money is going to be spent most effectively in pursuit of this objective.

[Rishi Sunak]

It is not just loans; it is loans and grants and tax relief on business rates, as well as deferral of tax payments through time to pay and reimbursement for statutory sick pay. Across the piece, it is a series of different interventions, all of which will be effective at doing one fundamental thing: improving the cash flow in the short term of businesses to help them bridge through what will be a temporary dislocation, so that they can emerge on the other side and we do not lose for the long term that productive capacity and lose those jobs.