Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what financial support his Department plans to provide to (a) businesses and (b) the self-employed in the event that they experience financial challenges as a result of covid-19 restrictions announced on 8 December 2021.

The Government continues to provide considerable support to the economy as it has done throughout the pandemic, with around £400bn of direct support during this fiscal year and last. As he has done throughout the pandemic, the Chancellor is closely monitoring the impact of the virus on the economy.

As part of this package of support, businesses of all sizes, including the self-employed, will continue to receive considerable support into the spring of next year. Small and medium-sized businesses can access Government-guaranteed finance through the extended Recovery Loans scheme until next June. Businesses will be protected from eviction if they are behind on rent on their premises, thanks to the moratorium in place until March 2022. Where applicable, businesses can continue to apply for the Additional Restrictions Grant (ARG) scheme through their local authority, which is open until March 2022.

For the sectors who were hardest hit by previous restrictions and may need additional support, there is further support in place. Business rates relief for eligible retail, hospitality and leisure businesses in England is available until March 2022, and hospitality and tourism businesses will continue to benefit from a VAT reduction – paying only 12.5% until March 2022. The arts and culture sector can still access support from the £2 billion Culture Recovery Fund and Sports Recovery Package, and the Film and TV Production Restart Scheme in place until 30 April 2022. While the £800m Live Events Reinsurance Scheme is giving events across the country the confidence needed for organisers to plan for the future.

The Government is continuing to support small businesses through the VAT threshold, currently higher than any EU member state, which keeps over 3million of the smallest businesses out of VAT altogether. For those self-employed individuals on low incomes whose earnings continue to be affected by Covid-19 restrictions, work coaches will continue to be able to suspend the Universal Credit Minimum Income Floor on an individual basis for up to six months per claimant. Businesses can also access free and impartial advice through the Growth Hub and the Business Support Helpline.