Tuesday 1st December 2020

(3 years, 11 months ago)

Commons Chamber
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Keir Starmer Portrait Keir Starmer
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I will come to that. I have accepted the case for restrictions—we were very clear about the need for a circuit break; we are clear that we need to go into restrictions—but we need a scheme that works, and I am explaining what the problem is with this scheme as we go through it.

Let me stay with track and trace. We know the claims the Prime Minister made about this at the beginning of the year and in the middle of the year. On tracing, which is crucial, the latest figures show 137,000 close contacts were missed by the system in one week. That is the highest weekly figure yet. This is not a figure that is going down; it is a figure that is going up. Over 500,000 close contacts have been missed by the system in the past month. That is not a statistic. That is half a million people who should have been self-isolating, but instead of self-isolating, they were with their friends, their families and their communities—half a million people in one month. That is a huge gap in the defences. I raise this issue every week, and the Prime Minister pretends it is getting better, but it never does. The Prime Minister has almost given up on it and put mass testing in its place, but again, that is blind optimism, not a plan. The idea that we can go through the next few months and successfully keep the virus under control when 500,000 people a month are wandering round when they should be self-isolating is not a sensible plan going forward.

My fourth point is the level of economic support that is provided. I have to say to the Prime Minister that it is hard to overstate the level of anger about this out there in our communities, many of which have been in restrictions for months on end. Yesterday, I did a virtual visit to local businesses in the north-west. Their emotions range from deep disappointment with the Government to raw anger that the Prime Minister and Chancellor just are not listening and do not get the impact of months of endless restrictions and the impact they have had on local communities. In March, the Chancellor vowed to do whatever it takes to support households and businesses, but there have now been six economic plans in nine months, and the level of support is still insufficient.

For these reasons, and let me spell them out—[Interruption.] The Prime Minister mumbles, but let me spell them out. First, the scheme does not fairly reflect the difficulties faced by businesses across the country. [Interruption.] I would be surprised if Government Members are not picking that up from their constituents and businesses. Let me start with the additional restrictions grant, which gives a flat figure to local areas, regardless of how long they have been in restrictions. That means Greater Manchester, which will be on its 40th day of severe restrictions when it enters tier 3 tomorrow, has received the same one-off support as the Isle of Wight, which went into restrictions far later and will emerge tomorrow into tier 1. That is unfair, and everybody knows it is unfair, and everybody in this House is being told by their constituents and by their businesses that it is unfair, so to pretend it is not just is not real, Prime Minister.

The second aspect—[Interruption.] The second aspect is that the grant does not take account of the number of businesses that need support in each area. Our great cities are being asked to spread the same sum far more thinly, and that is also clearly unfair. Our constituents know it is unfair, our businesses know it is unfair, and nothing has been done about it.

The third aspect—even allowing for today’s announcement on pubs, which is the definition of small beer—is that many businesses are now receiving less support than they did during the first wave. That is a huge strain for businesses, particularly those that have been so long under restrictions, and it makes no economic sense for the Government to allow them to go to the wall.

Putting the grant system to one side, the second major point about the economic support is that millions of self-employed people remain unfairly excluded from the Government support schemes. Again, nothing is being done about that. I have raised it so many times with the Prime Minster, as have others, and every time he chooses to talk about those who are within the scheme, ignoring those who are not in the scheme. It is eight months on, and we are facing another three or four months of this. That will mean 12 months without the support that is needed in those areas.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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I am extremely grateful to the right hon. and learned Gentleman for giving way. He talks about those people who have been excluded from support. To focus in on who those people are, they include people who set up their own businesses 18 months ago, directors of very small limited companies, taxi drivers, hairdressers and the like. These are the entrepreneurs we need to build Britain back as we recover from the economic wreckage of the coronavirus. Does he agree we should be investing in those people, not excluding them and leaving many of them in deep and dangerous debt?

Keir Starmer Portrait Keir Starmer
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I do agree, and their cry still has not been heard. I accept that in putting together a support package in a hurry back in March, there may have been reasons why certain groups were overlooked, but this is eight months on. It has been pointed out over and over again, and here we go into a tiered system and there is still that gap in the system, and it is being very strongly felt out there.

The third point about the economic package is this: the Government must remove the uncertainty about furlough and rule out changing the scheme again in January. That is crucial, because businesses are beginning to make decisions about what they do in January. The Chancellor made this mistake before. By the time the furlough was extended, many businesses had laid people off because it came too late. We know what happens in that circumstance. The uncertainty has already caused real economic damage and we cannot afford the same mistake again. So, taken together, the business and economic support just does not stack up.

I want to make a wider point about the economic damage that this pandemic and the Government have done to our economy. Last week’s autumn statement laid bare the huge and worsening economic cost of the crisis. I know there are those who say, “That is the reason to end restrictions”, but the reality is that we cannot protect the economy if we lose control of the virus—that just leads to more uncertainty, more restrictions and more long-term damage to the economy. The failure to get control of the virus or take a long-term approach to shielding our economy has left the UK with the worst economic recession of the G7 and the highest death toll in Europe.

The fifth reason for scepticism about the Government’s approach is this: managing and priorities. The past 48 hours have been a summary of the mistakes the Government have made in this crisis. The Prime Minister is fatally split between appeasing his Back Benchers and following the science, and he is ending up pleasing nobody. I think the Prime Minister knows that tough restrictions are now needed, but he pretends that the restrictions might not be in place for very long. He pretends that it is quite possible that everybody will be in a lower tier in two weeks’ time. The reality is that tough restrictions will be needed until the vaccine is rolled out, and that may be months away. The Prime Minister will doubtless be back in a few weeks with another plan, but he does not make that case today or provide the certainty or the consistency that we need. So in the past 48 hours we have had concessions, letters and promises to his MPs, not clear and reliable messaging to the public, and that is symptomatic of the problem.

Coronavirus remains a serious threat to the public’s health, our economy and our way of life. We recognise the need for continued restrictions, but it is not in the national interest to vote these restrictions down today and we will allow them to pass. But it is another wasted—