Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what his Department’s long-term strategy is on protecting jobs in the (a) hospitality, (b) leisure and (c) retail sector.

Over the course of the COVID-19 pandemic the Government has worked closely with the hospitality, leisure, and retail sector to understand the impact the pandemic has had, and how to protect jobs in these sectors.

The Coronavirus Job Retention Scheme (CJRS), which has been extended until April 2021, was introduced to help employers whose operations have been severely affected by COVID-19 retain their employees and protect the UK economy. All businesses across the UK can access the scheme, with employees receiving 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.

The wholesale and retail sector are responsible for the greatest total value of claims up to the end of October at £8 billion, supporting over 1.8 million jobs. In addition, by the end of October, the accommodation and food services sector had claimed £6.9 billion supporting over 1.6 million jobs, and the arts entertainment and recreation sector £2 billion supporting over 450,000 jobs. The Government continue to take a flexible approach and extended the CJRS to support jobs and provide businesses with certainty over the coming months.

In line with the extension to the CJRS, the Government also recently announced an extension to the Self-Employment Income Support Scheme (SEISS) until April 2021, to support self-employed individuals, across the UK, whose businesses have been adversely impacted by Covid-19, which is particularly important for the leisure sector.

The job support schemes come in addition to the wide-ranging package of business support available that will indirectly support jobs in these sectors, including protecting businesses with cash grants, Government backed finance through loan schemes, ‘Pay as You Grow’ long-term repayments options, a VAT deferral for up to 12 months, a 12-month business rates holiday; and a moratorium on evictions to protect commercial tenants.

The Government keeps all available business support under review and is continuing to collect evidence on the impact of the pandemic on these industries.