Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to help ensure the economic resilience of supply chains during the covid-19 outbreak.
Answered by Paul Scully
We have put in place an unprecedented package of Government support to help with business continuity and to give businesses and their suppliers the support they need to help ensure they can get back up and running after the Covid-19 crisis.
We have also worked closely with businesses, business bodies, trade unions, Public Health England and workplace safety experts to develop “national consensus” on the safest ways of working across the economy, with specific guidance drafted for different types of workplaces.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to (a) encourage and (b) support (i) Rolls-Royce and (ii) other similar manufacturing industries to help (A) retain their workforce and (B) prevent mass redundancies in response to the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government regularly speaks with automotive companies and has worked closely with Rolls Royce in response to COVID-19.
Rolls Royce is making use of the Coronavirus Job Retention Scheme (CJRS) and has drawn £300m of short-term finance from the Coronavirus Corporate Financing Facility (CCFF).
The Coronavirus Job Retention Scheme (CJRS) has so far protected 8.9 million workers and 1.1 million businesses through this crisis (as at midnight 7th June 2020).
All UK employers can apply for a grant that covers 80% of furloughed employees’ usual monthly wage costs, up to £2500 a month, plus the associated Employer National Insurance contributions and pension contributions.
This scheme is available to support 28.5m employees paid via PAYE across the UK.
This is a temporary scheme in place for 8 months starting from 1 March and ending at the end of October.
In addition, we are supporting businesses, by offering Government-backed finance through the Covid Corporate Financing Facility, Coronavirus Large Business Interruption Loans, Coronavirus Business Interruption Loans, and the Bounce Back Loans scheme, depending on the size of the company.
Where firms make the decision that they cannot retain all of their staff over the longer run, we are ensuring that those looking for work are supported through a significant package of temporary welfare measures.
This includes: £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1bn increase in support for renters through increases to the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants. These changes will benefit all new and existing claimants.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effect of the covid-19 outbreak on domestic manufacturing capacity.
Answered by Nadhim Zahawi
Manufacturing is a critical part of our economy.?My Department?is engaging with industry trade bodies to understand the impacts of Covid-19 on the manufacturing sector, to ensure that Government support meets the needs of manufacturers?during and after the Covid-19 outbreak.
On 7 May, the Office for National Statistics published the Business Impacts of Covid-19 Survey.[1] It showed that 79% of manufacturing businesses continued to trade during between 6 and19 April 2020. However, more than half of manufacturing businesses reported a fall in turnover during this period.
Asked by: Lord Campbell of Pittenweem (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what steps they are taking to support the (1) aerospace, (2) aviation, and (3) automotive industries in the UK.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We are supporting the aerospace industry through the Aerospace Growth Partnership (AGP) with £1.95 billion of funding for research and development (R&D), matched by industry, over 13 years up to 2026. UK Research & Innovation (UKRI) is also providing £125 million to the Future Flight Challenge for research on greener ways of flying through advances in electric and autonomous flight technology, which is expected to generate an additional £175 million of match-funding from industry. We are also co-investing in aerospace productivity improvement and innovation programmes to support small and medium-sized businesses backed with over £135 million of public funding.
In addition, aerospace companies are currently drawing upon the unprecedented £330 billion package of additional COVID-19 business support measures that the Government has put in place. We are in discussion with the sector, through the AGP, about how to best support the industry to recover.
Aviation is also an important sector for the UK’s economy, and businesses across the industry will also be able to draw on our package of economic measures. This includes a Bank of England scheme for firms to raise capital, two business interruption loan guarantee schemes for businesses of all sizes, Time to Pay flexibilities with tax bills, financial support for employees, and VAT deferrals.
If businesses across these sectors face severe and urgent financial difficulties due to COVID-19 following the Government’s cross-economy wage and financial interventions, we remain open to discussions about bespoke financial support as a last resort. Any intervention would need to protect the interests of taxpayers. Requests may be made formally, in writing, to the Business Secretary.
Furthermore, the Government has a long-standing programme of support to maintain the competitiveness of the UK automotive sector. Through our landmark Automotive Sector Deal, we have secured joint investment and long-term commitments to develop world-leading battery technologies, positioning the UK as the location of choice for the development and deployment of connected and autonomous vehicle technologies.
The Government, alongside industry, has jointly committed almost £1.5 billion through the Advanced Propulsion Centre and Faraday Battery Challenge to research, develop, and commercialise low-carbon automotive innovations. In October last year, we announced up to £1 billion of new money to support R&D to support electric vehicle manufacture.
Asked by: John Spellar (Labour - Warley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to support the manufacturing sector during the covid-19 outbreak.
Answered by Nadhim Zahawi
Manufacturing is a critical part of our economy and the Government is engaging with industry to ensure that we can support our manufacturing sectors during and after the Covid-19 pandemic.
Many businesses across the aerospace, chemical, automotive, steel, aluminium, pharmaceutical, packaging, and other sectors are playing a direct role in combatting COVID-19. These businesses are producing the materials and equipment necessary, as well as enabling the services that we need to fight the spread of the virus and keep the country running.
We have put in place an unprecedented package of Government support to help with business continuity and to give manufacturers and their suppliers the support they. These measures include:
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what discussions he has had with large wholesale beverage manufacturers to encourage them to engage constructively with distributors, who are unable to sell stock due to the covid-19 lockdown.
Answered by Victoria Prentis - Attorney General
The Government has been working closely with the full spectrum of food and drink manufacturers across the country to maintain secure food and drink supply chains during COVID-19 lockdown. Regular engagement is taking place through a variety of forums, such as the weekly manufacturer calls led by Defra Secretary of State, as well as individual calls and engagement at a policy level.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to support the manufacturing sector during the covid-19 outbreak.
Answered by Nadhim Zahawi
Manufacturing is a critical part of our economy and the Government is engaging with industry to ensure that we can support our manufacturing sectors during and after the Covid-19 pandemic.
Many businesses across the aerospace, chemical, automotive, steel, aluminium, pharmaceutical, packaging, and other sectors have answered the call to action. These businesses are playing a direct role in combatting COVID-19 by producing the materials and equipment necessary, as well as enabling the services that we need to fight the spread of the virus and keep the country running.
We have put in place an unprecedented package of Government support to give manufacturers and their suppliers the support they need to ensure business continuity. These measures include:
Asked by: Richard Holden (Conservative - North West Durham)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to support original equipment manufacturers to re-shore industrial supply where viable during the covid-19 outbreak.
Answered by Nadhim Zahawi
Manufacturing is a critical part of our economy?and?we are engaging with the industry and its suppliers to ensure that we can support them?during and after the Covid-19 pandemic.
We have created an unprecedented package of Government support to help, including:
- £330 billion of Government-backed and guaranteed loans to support UK businesses.
- The Coronavirus Business Interruption Loan Scheme to help small and medium-sized businesses to access vital financial support.
- Our new Coronavirus Large Business Interruption Loan Scheme to allow more firms to benefit from Government-backed support during this difficult time.
- Deferring VAT payments for firms to the next quarter, until the end of June 2020, which represents a £30 billion injection into the economy.
- Our Coronavirus Job Retention Scheme, where small and large employers will be eligible to apply for a Government grant of 80% of workers’ salaries up to £2,500 a month, backdated to 1 March 2020 and available for at least three months.
Ensuring free trade and resilient supply chains through open markets will be crucial to the global economic recovery as the crisis passes. We are working with the Devolved Administrations to support the manufacturing industry by continuing the flow of critical freight for the whole of the UK.
The Government is also supporting industry-led research to map UK supply chain capability, which creates substantial new opportunities for UK suppliers.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to support the manufacturing sector during the covid-19 outbreak.
Answered by Nadhim Zahawi
Manufacturing is a critical part of our economy. The Department is committed to ongoing engagement with industry to ensure that our manufacturers and their workforce have the support they need, including guidance on how to maintain production safely, where possible. Many companies across the aerospace, chemical, automotive, steel, aluminium, pharmaceutical, and packaging sectors, including those providing essential services and materials, have answered the Government’s call to action. Industry is playing a direct role in our national effort by producing the material we need to fight the spread of the virus.
We have put in place an unprecedented package of Government support to help businesses, which includes providing manufacturers with the support they need to help them get back up and running. Measures include:
The Department has also issued sector-specific advice for manufacturers regarding social distancing in the workplace, which is helping employees to continue working safely during the crisis. This advice is available at:
Asked by: Preet Kaur Gill (Labour (Co-op) - Birmingham, Edgbaston)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, what steps he is taking to encourage industries to switch production to personal protection equipment for (a) the NHS and (b) social care providers.
Answered by Jo Churchill - Minister of State (Department for Work and Pensions)
The Government’s personal protection equipment (PPE) plan was published on 10 April and can be found at the following link:
As Strand 3 details, we have set up a cross-Government PPE sourcing unit to secure new supply lines from across the world and a call to industry has been issued to companies at home to manufacture and supply additional PPE at scale.
There has been limited United Kingdom manufacture of PPE to date and so new supply channels for materials to make PPE have been sourced at pace in order to enable new manufacturing to commence.