Economy Update

Stephen Crabb Excerpts

Wednesday 16th June 2021 Commons Chamber

[Steve Barclay]

May I first echo the remembrance by the hon. Lady and colleagues across the House of Jo Cox? I also pay tribute to the hon. Lady for the work that she has done, including with my friend Seema Kennedy, through the loneliness commission.

Let me turn to the various points raised by the hon. Lady. She said that she is not calling for support forever, but suggested that the Government were withdrawing support. The package announced by my right hon. Friend the Chancellor was designed deliberately to go long, until September. Measures such as furlough were extended to anticipate the fact that there were no guarantees on the covid road map. That was very much designed into the support, so there is no question of withdrawing support; it was in the very plan announced by the Chancellor.

The hon. Lady’s question about the delta variant was addressed comprehensively by the Prime Minister during Prime Minister’s questions, where he pointed out the timing. One can look back with hindsight now, but the issue was the timing of the delta variant becoming a variant of concern. I will not repeat the points made by my right hon. Friend the Prime Minister.

I am grateful to the hon. Lady for recognising the announcement regarding commercial rents. I hope that that is appreciated across the House. I know that it speaks to a very real concern that many Members will have seen through their constituency emails and post bags, and that it will provide some extended support.

The hon. Lady questioned whether the Government are doing whatever it takes. Again, I remind the House that the Government have spent £352 billion to date. By any definition, I think that is a comprehensive package. More to the point, the plan is working. We see that in the plan for jobs, in the fact that the unemployment projections have improved and in the number of jobs there have been since November. My right hon. Friend the Chancellor’s plan is working. He has done whatever it takes to protect our NHS and public services, putting a further £63 billion into the NHS for covid support measures last year. The plan is having clear benefits.

The hon. Lady asked specifically about the furlough taper. Labour market conditions have improved substantially since the turn of the year and will continue to do so. Indeed, demand for staff has increased at the quickest rate for more than two decades. With unemployment falling in the last four releases, there is clear evidence that the labour market is beginning to recover, but we went long in the first place to anticipate any slippage in the covid road map.



The hon. Lady had a query on business rates. Again, it is worth reminding the House just how comprehensive the support on business rates has been, with 100% business rates relief last year for many businesses, and those businesses now paying 75% over the course of this year. There is a comprehensive package of support for businesses. There is no question but that many businesses will feel strain as result of the further extension, and it is not a decision that my right hon. Friend the Prime Minister took lightly, but the package of support announced by the Chancellor anticipated this scenario. It went long in order to provide support and it continues to do so in a way that the evidence and the data shows is working.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

I welcome the Minister’s statement. He is right: the latest employment and job vacancy figures do demonstrate that the UK economy is now rebounding strongly. I cannot recall a time when so many businesses in my constituency were telling me that they are struggling to hire staff, right across all sectors. Does he agree that we need to take a sober and clear-sighted look at the furlough scheme, because it is the view of a great many employers out there that there are still far too many people being paid to do nothing, which is distorting the efficient functioning of the labour market as well as costing the country tens of billions of pounds?

[Steve Barclay]

My right hon. Friend draws attention to exactly why the attack from the Opposition is misplaced and why the furlough taper is justified—because there is demand for labour from businesses. He also knows that it is part of the wider package of support. As a former Secretary of State, he has done a huge amount to champion the need to support people looking for work. That is what the doubling of the number of work coaches is doing. We announced a further £2.6 billion of additional support for the Department for Work and Pensions in the spending review, alongside further specific measures such as the restart scheme, to tackle the situation of those who have been unemployed for over a year. Over 1 million unemployed people on universal credit will have access to that scheme.

This is about a combination of the furlough, which is providing much-needed support but needs to taper, and a wider plan for jobs, including the restart scheme, the kickstart scheme, the tripling of traineeships, and the increase in the apprenticeships incentive to £3,000—a whole package alongside the doubling of the number of work coaches.