Oral Answers to Questions

Steve Barclay Excerpts

Tuesday 15th September 2020 Commons Chamber

[Mr Richard Holden (North West Durham) (Con)]

What estimate he has made of the level of financial support that has been provided to employees by businesses under the coronavirus job retention scheme.

[The Chief Secretary to the Treasury (Steve Barclay)]

As of 16 August, 9.6 million jobs have been protected by the coronavirus job retention scheme, helping 1.2 million businesses with a total value of £35.4 billion.

[Mr Holden]

Thousands of jobs in my constituency of North West Durham have been protected by the Government over this period, but my constituents are aware that such levels of taxpayer support cannot go on indefinitely and also want to see new jobs being created. Will my right hon. Friend enlighten me as to how many jobs we are looking at getting through the kickstart scheme, which is now coming forward to help to get new jobs into the economy?

[Steve Barclay]

The £2 billion kickstart scheme has the potential to support more than 250,000 young people and, as my hon. Friend is well aware, it is part of a comprehensive package of £30 billion of support that my right hon. Friend set out as part of his plan for jobs in the summer economic update.

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

Despite countless warnings from these Benches, the Government are pulling away the job retention scheme just at the moment when infection rates are rising again right across our country. Businesses have said it, unions have said it, and even Tory Back Benchers are saying it: the one-size-fits-all withdrawal of wage support risks a jobs crisis this autumn. Will the Minister not listen and change course before it is too late?

[Steve Barclay]

The hon. Lady is simply wrong. What she ignores is the fact that my right hon. Friend has put in place a furlough bonus as support that goes beyond October to retain that link for employees to come back. That is part of a wider package of measures that goes alongside the furlough and stands comparison with the most generous in the world.

[Bridget Phillipson]

The Chief Secretary knows full well that the jobs retention bonus risks giving all the money to companies that simply do not need it. We would happily support the Government in developing a targeted, flexible wage support scheme for hard-hit sectors central to our country’s future. We have been saying this day in, day out for months now—the Government just have not been listening. Rather than stubbornly sticking to a decision made back in July, can he not accept that the situation has changed and that the Government must also change course?

[Steve Barclay]

There seems to be some confusion because, just last week in the debate that we had in this House, the shadow Chancellor actually recognised that the Chancellor had indeed listened with regard to the design of the furlough. In fact, they claimed credit for the role, which I salute, of the trade unions and others. So we have listened, but the reality is that the furlough pays a higher rate of people’s wages than the scheme in Spain. It supports a wider range of businesses than the one in New Zealand and the scheme runs for twice as long as that in Denmark. That shows the flexibility and the willingness to listen on the part of my right hon. Friend.

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

What fiscal steps his Department is taking to protect jobs during the covid-19 outbreak.

[Mr Mark Harper (Forest of Dean) (Con)]

What fiscal steps his Department is taking to protect jobs during the covid-19 outbreak.

[The Chief Secretary to the Treasury (Steve Barclay)]

The Government have put in place a £190 billion plan to protect people’s jobs, incomes and businesses, one of the largest and most comprehensive economic responses in the world, and that includes the £30 billion made available under the plan for jobs.

[Nickie Aiken]

The Eat Out to Help Out scheme has been a phenomenal success in my constituency of the Cities of London and Westminster. More than 890,000 meals have been discounted—several eaten by myself, I hasten to add. Will my right hon. Friend comment on the amazing package of help that the Government have given to the retail and hospitality sectors? Moving forward, what policies can we hope to expect to support these vital sectors, which are responsible for hundreds of thousands of jobs in my constituency?

[Steve Barclay]

My hon. Friend is right to recognise the effectiveness of that scheme in supporting demand. It was dismissed as a gimmick when my right hon. Friend the Chancellor launched it, but it has been warmly received by the hospitality industry. As she knows from her constituency and that of others, it is part of that wider package of support, including the cutting of the rate of VAT, which again has been a huge boost to that industry.

[Mr Harper]

I thank the Treasury team for the support that they have provided so far. My experience during the summer was that there was a great deal of support from local businesses for the variety of schemes, particularly those in the hospitality and tourism sectors, which are very important in my constituency. Turning to the future though, we must make sure that we provide the job opportunities that we are going to need. In Gloucestershire, we had a lift-off event last Friday, organised by my hon. Friend the Member for Gloucester (Richard Graham) and supported by all six Gloucestershire MPs, where we focused on skills and training and brought together a range of employers. That is the kind of thing that I would like my right hon. Friends in the Treasury to think about supporting. It is the future we need to focus on, not the past.

[Steve Barclay]

I pay tribute to my right hon. Friend for that event. I saw the read out and how positive it had been. He is right to focus on that forward piece, using the package of measures that my right hon. Friend set out. That includes, for example, the payment to employers for each new apprenticeship—up to £2,000 for those over 25—the £2 billion kickstart scheme, but also other schemes such as the tripling in the number of traineeships. Events such as the one he mentioned are ones that I am sure other Members will wish to follow.

[Joy Morrissey (Beaconsfield) (Con)]

What assessment he has made of the effectiveness of the eat out to help out scheme in supporting the hospitality industry.

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[Mrs Pauline Latham (Mid Derbyshire) (Con)]

Whether he is responsible for the allocation of official development assistance to Government Departments other than the Foreign, Commonwealth and Development Office.

[The Chief Secretary to the Treasury (Steve Barclay)]

Yes, Her Majesty’s Treasury is responsible for the allocation of ODA across all Government Departments. The comprehensive spending review will determine all ODA budgets.

[Mrs Latham]

I thank my right hon. Friend for that answer, but how can we ensure that all money spent qualifies for ODA categorisation and is particularly focused on relieving poverty?

[Steve Barclay]

I know my hon. Friend takes a close and expert interest in this issue, not least through her work on the relevant Select Committee. Individual Departments are responsible for ensuring that all money spent as ODA meets the criteria of the OECD Development Assistance Committee, and that it is spent through the powers of the International Development Act 2002, which requires funding likely to contribute to a reduction in poverty.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

What fiscal steps he is taking to help families on low incomes during the covid-19 outbreak.

[The Chief Secretary to the Treasury (Steve Barclay)]

The Government are committed to all groups in society, including the most vulnerable, facing the challenges caused by covid-19. That is why we have put in place an unprecedented package of support, including the job retention scheme, the self-employed income support scheme and a package of welfare measures that the Office for Budget Responsibility estimates to be worth in excess of £9 billion.

[Stephen Crabb]

The commitment of this Government to ensuring that the most vulnerable in our society are protected through this crisis cannot be questioned. The scale of the intervention has been remarkable, but may I encourage the Chancellor and the Treasury team, as they begin making their plans for next year’s spending, to bear in mind the importance of the increase in universal credit that we made at the beginning of the pandemic, and to ensure that we keep it in place, because many more families will be relying on it in the months ahead?

[Steve Barclay]

My right hon. Friend is a passionate champion of this issue. He will have seen from the answer given earlier by my right hon. Friend the Chancellor that the distribution analysis at the time of the summer update illustrated that the measures taken by the Chancellor had protected the poorest households the most as a proportion of income. I know that he will have listened closely to my right hon. Friend’s representations.

[Afzal Khan (Manchester, Gorton) (Lab) [V]]

What recent discussions he has had with the Secretary of State for Housing, Communities and Local Government on the adequacy of funding for local authorities during the covid-19 outbreak.

[The Chief Secretary to the Treasury (Steve Barclay)]

rose—

[Afzal Khan]

Analysis undertaken by 10 Greater Manchester councils and combined authorities shows that the impact of coronavirus and the actions taken to manage the pandemic will be in the region of £732 million by the end of 2021. The Government have promised to level up the country, and it is time to make good on that promise, so will the Minister give Greater Manchester and its councils the resources they need to lead the recovery and build back better?

[Steve Barclay]

The hon. Gentleman is right to highlight the importance of levelling up across the United Kingdom. It is a key objective of this Government. That is why we are backing councils with the resources they need to meet the challenges caused by coronavirus. That includes more than £3.7 billion of grant funding so far, to address many of the pressures that they face.

[Jessica Morden (Newport East) (Lab)]

What assessment he has made of the implications for his policies of the Welsh Government’s social care workforce special payment scheme.

[The Chief Secretary to the Treasury (Steve Barclay)]

Spending on devolved matters is a matter for the Welsh Government. The UK Government do not set the levels of pay for care workers in England, but we are focused on ensuring that the social care system is funded, so that providers pay a fair wage.

[Jessica Morden]

Can the Minister tell my constituents who are care workers why, when they have worked their hearts out and been given a £500 thank you by the Welsh Labour Government, this Government see fit to deduct money from them, leaving those on universal credit with around £125? That is just mean-spirited.

[Steve Barclay]

The hon. Lady should point out to those same workers that this Government have allocated an unprecedented £4 billion of guaranteed funding to the Welsh Government to enable them to allocate funding under what is a devolved matter. If she is drawing attention to the fact that there is a shortfall in what she feels should be going to care workers in her constituency, she needs to address why more of that £4 billion is not being allocated to care workers in what is a devolved issue.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

What recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on sectoral support for manufacturers during the covid-19 outbreak.

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[Craig Whittaker (Calder Valley) (Con)]

  I recently had the pleasure of visiting Smart Display, a great Calder Valley business in the events and exhibitions sector, which supports over 28 employees. While it praises the sterling work done by my right hon. Friend to support businesses through furlough, CBILS—the coronavirus business interruption loan scheme—and rate relief, many businesses in its sector were among the first to close and will be the last to reopen, with many exhibitions not planned until next year. Can my right hon. Friend take this into serious consideration during the Budget process to see what additional measures he could take to support these businesses, which are the hardest hit financially by the pandemic?

[The Chief Secretary to the Treasury (Steve Barclay)]

My hon. Friend is right to draw attention to the particular impact on that sector. It is something we are engaging on closely with it, and I am very happy to continue to have dialogue with my hon. Friend on the issue.

[Andrew Gwynne (Denton and Reddish) (Lab) [V]]

Tackling the covid crisis relies on us all doing the right thing, but for many that is just an impossible choice financially, as we heard from the shadow Chancellor. The lowest-paid workers who self-isolate must do so on statutory sick pay of £190 in total for two weeks. Can the Chancellor even begin to imagine how impossible it is to bring up a family for a fortnight on about the same amount as the cost of his £180 high-tech coffee cup?

[Steve Barclay]

I think my right hon. Friend addressed this in his reply to the shadow Chancellor. The key issue is to look at the package of measures the Government are putting in place. First and foremost among those is retaining people’s link to employment. That is the most important issue. Alongside that, the measures on welfare, including support for businesses that are in lockdown, are part of the comprehensive response, and statutory sick pay is one of a suite of measures.

[Holly Mumby-Croft (Scunthorpe) (Con)]

  Does my right hon. Friend agree with me that the best way to stimulate our economy is through measures that create jobs and help people back into work?

[Steve Barclay]

My hon. Friend is absolutely right. That is the underlying principle behind furlough—to enable the labour market to bounce back, with jobs in businesses that were viable before the pandemic being able to recover quickly. It is also part of the three-phase strategy that my right hon. Friend the Chancellor has set out. The second phase is to concentrate on skills to create jobs, protect jobs and support jobs, and to enable those workers to come back into the economy and for the economy therefore to recover quicker.

[Daniel Zeichner (Cambridge) (Lab)]

  The Government will be aware of the significance of the sale of Cambridge-based ARM to American chip maker Nvidia. Will the Government intervene both to secure the headquartering and jobs in Cambridge, but perhaps more significantly, to get an exemption from the American CFIUS—Committee on Foreign Investment in the United States—rules, which give the American Government such leverage? Why on earth would we want to throw away such a bargaining chip in advance of trade negotiations?