Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of introducing additional lending schemes for (a) hospitality and (b) other businesses experiencing an immediate and open-ended erosion of their business viability as a result of the covid-19 outbreak and associated restrictions.

Through the Chancellor’s Winter Economy Plan, the Government continues to protect jobs and struggling businesses across the most impacted areas of the UK. As part of this plan, the Chancellor announced that we have started work on a new, successor loan scheme, set to begin in January.

The Chancellor also announced an extension to the application deadlines for the Coronavirus Business Interruption Scheme (CBILS), the Coronavirus Large Business Interruption Scheme (CLBILS), the Bounce Back Loan Scheme (BBLS) and the Future Fund to a single date, 30 November. This provides additional time for businesses who need support to apply for government-backed finance.

The Government recognises that the necessary restrictions introduced through the Tier system have been disruptive for businesses. That is why we have set out an expanded package of support for businesses who are legally required to close, as well as for those who are not forced to close, but who face reduced demand due to additional restrictions on socialising.

The Job Support Scheme will now guarantee that most workers working a minimum of 20% of hours receive at least 73% of their usual wages, while workers whose employers have been closed by health restrictions will be guaranteed two thirds of their wages.

Hospitality, leisure and accommodation businesses in Tier 2 and Tier 3 areas will now also be eligible to receive a grant of up to £2,100 and £3,000, respectively, according to the value of their premises. Sufficient funding will be allocated to Local Authorities to distribute.