Steve Barclay
Main Page: Steve Barclay (Conservative - North East Cambridgeshire)Department Debates - View all Steve Barclay's debates with the HM Treasury
Oral Answers to Questions
Steve Barclay Excerpts(4 years, 1 month ago)
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Mrs Maria Miller (Basingstoke) (Con)
What fiscal steps his Department is taking to support businesses affected by the covid-19 outbreak. [907783]
The Chief Secretary to the Treasury (Steve Barclay)
The Government recognise that the pandemic has caused extreme disruption to the economy. That is why we have delivered one of the most comprehensive and generous support packages anywhere in the world, worth over £190 billion.
Dr Mullan
I recognise the enormous amount of support that has been given to businesses in Crewe and Nantwich. I have spoken to many that would not have survived without it, and I know the pressure on public finances. But hospitality businesses such as the one I visited, Giovanni’s in Crewe, will really struggle with the 10 pm curfew and the ban on household mixing. Can the Government look again at what we can do for businesses that might technically be allowed to open but will struggle under those circumstances?
Steve Barclay
My hon. Friend is right that there has been disruption to businesses in tier 2 areas. That is why my right hon. Friend the Chancellor has cut VAT from 20% to 5% and extended that to 31 March and also introduced a 12-month business rates holiday.
Antony Higginbotham
Over the last few days, businesses across Burnley and Padiham, from bookkeepers to bars and pubs, have had to close as the county of Lancashire has entered tier 3 restrictions. While it is welcome that those businesses are getting Government support through the extension of furlough and business grants, there are many more in the supply chain that will be equally impacted because their end suppliers are not there. Could my right hon. Friend set out what measures are available to support them over the next couple of months?
Steve Barclay
As a Lancastrian myself, I am acutely aware of the impact on the county of Lancashire, which is why my right hon. Friend the Secretary of State for Housing, Communities and Local Government negotiated the additional business support. That builds on the measures set out by the Chancellor to support businesses not just through the job support scheme, but through the furlough bonus.
Caroline Nokes
It is not just businesses in tiers 2 and 3 that have been impacted; in tier 1, some sectors are still unable to trade, suffering from a total loss of business. Does my right hon. Friend agree with the head of the IMF that
“now is not yet the time to balance the books”,
and will he consider extending support to businesses that still cannot work in these times?
Steve Barclay
My right hon. Friend is right about the pressure on businesses in tier 1 as well. That is why, in the package the Chancellor has set out, has been the extension of loan facilities to help those businesses with their cash flow. In the south-east region, which my right hon. Friend represents, the total is some £0.5 billion of support.
Mrs Miller
Many thousands of small businesses have already benefited from the measures that my right hon. Friend and his colleagues have put in place. As we move forward, may I urge him to keep a small business focus, particularly for small brewers? Duty levels are a crucial part of their business viability, and may I urge him to keep small breweries’ relief in place, as it is helping to safeguard the future of many small breweries not just in Hampshire but throughout the United Kingdom?
Steve Barclay
My right hon. Friend makes an extremely valid point about the impact on that sector. That is why the Treasury is reviewing small breweries’ relief and, indeed, the Exchequer Secretary has taken forward reforms, at the industry’s request, to fix issues in the current relief design.
Joanna Cherry (Edinburgh South West) (SNP)
If the Government will take steps to ensure that victims of the Equitable Life scandal receive full compensation for their losses. [907761]
Stephen Timms (East Ham) (Lab)
What assessment he has made of the effect on the economy of removing the temporary uplift in universal credit from April 2021 while the covid-19 outbreak continues. [907766]
The Chief Secretary to the Treasury (Steve Barclay)
The £20 per week increase in the universal credit standard allowance and working tax credit basic element forms just one part of the package of support the Government have provided to protect people’s jobs and incomes, including income support schemes.
Stephen Timms
The Government were right to increase universal credit and working tax credit by £20 a week. Surely, it would now be inconceivable to remove those increases in April as planned, before the pandemic is even over. Does the Minister accept that of the indirect levers available to the Government to stimulate what is, as we have heard already, going to be a weak economy for some time, measures that raise the incomes of low-income households are the most effective, and benefit increases are a good example?
Steve Barclay
I am grateful that the right hon. Gentleman recognises the additional £9 billion of support that my right hon. Friend the Chancellor has put into welfare. That is reflected, as the right hon. Gentleman will further recognise, in the distributional analysis showing that that has protected those on the lowest incomes. That support is temporary, but it does extend to the spring, and it helps those families facing covid with the challenges over the coming months.
Allan Dorans (Ayr, Carrick and Cumnock) (SNP)
What fiscal support he is providing to mitigate the economic effects of the covid-19 outbreak. [907767]
Kate Osamor (Edmonton) (Lab/Co-op)
If he will hold discussions with the Secretary of State for Housing, Communities and Local Government on the potential merits of reopening business support grant funding schemes for allocation by local authorities. [907768]
The Chief Secretary to the Treasury (Steve Barclay)
I hold regular discussions with my right hon. Friend the Secretary of State for Housing, Communities and Local Government. The original national business grant schemes provided support to small businesses that faced fixed property-related costs during the strict lockdown period.
Kate Osamor [V]
I thank the Minister for his reply, but is he aware that in Enfield only 189 small businesses received a discretionary grant, even though 330 applied for one? In view of further restrictions in London, will the Minister commit to urgently releasing extra funding to Enfield Council to ensure that those businesses that previously missed out can reapply for financial support?
Steve Barclay
The previous grant was for businesses that had been forced to close. My right hon. Friend the Chancellor has allocated additional funding through the local restrictions support grant scheme for businesses that are forced to close, with an additional £1,500 per two-week closure period. As the hon. Lady said, the previous grant was discretionary and local authorities therefore had discretion as to how many firms benefited from it.
Andrew Lewer (Northampton South) (Con)
What steps his Department is taking to support self-employed people affected by the covid-19 outbreak. [907770]
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]
The Chief Secretary to the Treasury (Steve Barclay)
I pay tribute to my hon. Friend for her work on that important initiative. She is a champion of levelling up in Cornwall and the Government are committed to working with her, which is why among the package of measures of support is included the Cornwall social housing retrofit acceleration and the Cornwall institute for space artificial intelligence. That is part of a suite of measures that will work with the welcome initiative that my hon. Friend has championed.
Carol Monaghan (Glasgow North West) (SNP)
It is noticeable how many Members have raised today the issue of the self-employed and freelancers, such as musicians, actors and dancers, who have had little or no support throughout the pandemic. Rather than suggest that they abandon years of dedication and training, will the Chancellor now consider initiatives such as a universal basic income to protect our valuable arts sector? [907826]
Lee Anderson (Ashfield) (Con)
I stand here as a proud ex-coalminer. The mineworkers’ pension scheme has done very well over the past 25 years, with successive Governments taking more than £4.5 billion in return for guaranteed payments from the Government. Will my right hon. Friend work with me to ensure that ex-miners and their families get a fairer deal? [907829]
Steve Barclay
I know that my hon. Friend has championed this issue and I look forward to further discussions with him on it. He will also know that the Government and the mineworkers’ pension scheme have agreed to guarantee the core pension rates in the case of a deficit in the scheme, and have further agreed to protect bonus pensions that have accrued to date. Therefore, clear progress has been made, but I am happy to have further discussions with him.
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]
Mr Speaker
Order. Dr Julian Lewis, you know better than to take advantage of me; it is not fair to others. Who wants to answer the question?
Steve Barclay
It is in order to address such pressures that we have set out such a comprehensive package of support that applies universally, including to the businesses to which my right hon. Friend refers. Through his question, he points to another substantive point, which is that suppliers supply to different sectors. One of the challenges with the Opposition’s proposals to extend the furlough was that they were never clear which sector they wanted to extend it to. The fact that suppliers supply multiple sectors, including the public sector, is a good illustration of why that proposal is flawed.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
The Chancellor will be aware that wholesalers play a fundamental role in the food and drink supply chain, and, among other things, provide vital resources to our schools, hospitals and care homes; yet many are still struggling and do not have enough Government support. Bidfood, which is based in my Slough constituency, has seen an almost 50% downturn in its sales volumes, and has been forced to make 7% of its workforce redundant. Why has this company been ignored? Given the increased lockdown measures that are proposed, what measures will the Chancellor put in place to support struggling wholesalers—