Oral Answers to Questions

Paul Scully Excerpts

Tuesday 15th December 2020 Commons Chamber

[James Daly (Bury North) (Con)]

What steps his Department is taking to support hospitality businesses in areas under tier 3 covid-19 restrictions. [R]

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I commend my hon. Friend for his work as the voice of the hospitality sector in Bury and the surrounding area. The Government have provided an unprecedented package of support to hospitality businesses, including almost £10 billion in rates relief. Those under tier 3 may be eligible for a local restrictions support grant of up to £3,000 per month and the additional restrictions grant.

[James Daly]

Hospitality businesses in Bury, Ramsbottom and Tottington have spent thousands of pounds to make their premises covid-secure. If Bury remains in tier 3 during the Christmas period, many of those businesses will face financial ruin. Will my hon. Friend therefore work with the Treasury to ensure that adequate financial support is given to those otherwise viable businesses? If we do not act now, these important community assets will be lost forever, with the devastating loss of thousands of jobs. Please save our pubs.

[Paul Scully]

I am grateful to all the hospitality businesses across the country, including in Bury, that have done so much work to become covid-secure. I am in contact with Treasury colleagues who know that businesses need support in those higher tiers, and that is why we are giving additional support for wet-led pubs worth up to £40 million in grants.

[Wendy Chamberlain (North East Fife) (LD)]

What steps he is taking to support the self-employed during the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

The Government have already paid £13.5 billion through the self-employment income support scheme. In November, we announced an increase in the overall level of the SEISS grant, equivalent to an additional £7.3 billion of support to the self-employed through November to January alone. This scheme is among the most generous in the world.

[Wendy Chamberlain]

As the pandemic continues, the flaws of the original self-employment income support scheme have become clear. One of my constituents lost out on thousands of pounds in a potential grant because, for the best part of the year in 2019, he was injured, unable to work and therefore could not evidence his usual income. When the pandemic started, we all appreciated the fact that these schemes were put into place very quickly to provide support, but in the months since, there has not even been recognition. Does the Minister agree that now is the time to look back at schemes to ensure that those who are excluded are supported, too?

[Paul Scully]

I thank the hon. Lady for her question. We will always look for and listen to suggestions on how we can improve schemes, and I will continue to work with Treasury colleagues to reflect that.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

What assessment his Department has made of the effect of tiered covid-19 public health restrictions on businesses’ ability to trade.

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[Patrick Grady (Glasgow North) (SNP)]

What recent discussions he has had with the devolved Administrations on the United Kingdom Internal Market Bill.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

The Government have sought to engage constructively with the devolved Administrations throughout the passage of the United Kingdom Internal Market Bill. The recent fruits of that continuing commitment include several amendments tabled by the Government strengthening a role for the devolved Administrations.

[Gavin Newlands]

Of course, Rolls-Royce operates its own internal market in which plant is often set against plant, but more and more it relies on third-party suppliers rather than on in-house manufacture. Inchinnan has already seen some 700 jobs go, and despite favourable production stats, we now know that there will be further redundancies, with the aero shafts line closing and work being transferred to Derby, as well as other UK Rolls-Royce jobs being offshored to Spain. The Scottish Government’s Rolls-Royce working group was set up to protect jobs at Inchinnan. If the Government’s power-grabbing Bill is passed, will the Minister ensure that the Government will work with the Scottish Government to protect Scottish Rolls-Royce jobs?

[Paul Scully]

The hon. Gentleman talks about grabbing powers back, but Scotland will be gaining powers in more than 100 areas that are at the moment controlled by the EU. Of course we will continue to work with important industries such as the aerospace sector and with companies such as Rolls-Royce to protect jobs.

[Patrick Grady]

Those of us who are paying attention will have seen that the House of Lords has passed amendments to the UKIM Bill to try to salvage what might be left of the devolution settlement, which the Government have explicitly rejected. If Members look at the Order Paper, they will see that it states:

“The Scottish Parliament and Senedd Cymru have each decided not to approve a Legislative Consent Motion relating to this Bill.”

How is this respecting the devolution settlement? This Government legislated to protect Sewel on statute, but now they are riding roughshod all over it.

[Paul Scully]

The Sewel convention envisages situations such as this, where the UK Parliament may need to legislate without consent. We regret the fact that the Scottish Parliament has chosen to do that, but the Bill is essential for protecting businesses and citizens across Scotland, and across the whole of the UK, as the transition period ends.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Since the Scottish Parliament was reconvened in 1999, Scottish productivity has rocketed by more than a third, way above the 24% for the UK as a whole. Our Parliament has been a gift to business, whether under Scottish National party or Labour and Liberal Governments. This Bill extends Westminster’s bony hand into the control of devolved spending across health, food safety, the environment and much more. Is it too late for a festive miracle, with a Tory Minister actually listening to the wise men and women across Scottish society, industry, organisations and law and in Scotland’s democratically elected Parliament and Government, and scrapping this assault on Scotland’s democracy and business productivity?

[Paul Scully]

Spending powers in the UK internal market are in addition to the spending that the Scottish Government already make. These are issues that have up to now been dealt with by the EU, and we will continue to work with the devolved Administrations throughout this process.

[Drew Hendry]

The Minister talks about spending powers. This Bill allows UK Ministers to control spending in the devolved areas of economic development, infrastructure, cultural activities, regional development, education, water, power, gas, telecoms, railways, health, housing and justice. Given the track record of the Tories, for Scotland this really is the nightmare before Christmas. Can he see why, after 16 opinion polls in a row, Scottish people do not want his rotten gifts but instead are looking to protect their Parliament and their rights through Scotland becoming a normal independent nation?

[Paul Scully]

I regret that the Scottish Government have not continued their discussions with the UK Government about an internal market Bill specifically, whereas they have continued them on the common frameworks. On the United Kingdom Internal Market Bill, we have made amendments in the other place that reflect conversations with the Welsh Senedd and Northern Ireland Assembly. I just wish the Scottish Government would come back with productive conversations so that we can push this through and give certainty for business.

[Harriett Baldwin (West Worcestershire) (Con)]

What steps his Department is taking to support businesses during the covid-19 outbreak.

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[Mike Amesbury (Weaver Vale) (Lab)]

What steps his Department is taking to reduce the use of dismiss and re-engage tactics by employers.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

The Government appreciate the difficulties that many people are currently facing and are sympathetic to those who are worried about their jobs. We are clear that using threats about firing and rehiring as a negotiating tactic is unacceptable. However, businesses in real financial difficulty need flexibility to offer new terms and conditions in order to save as many jobs as they can.

[Mike Amesbury]

First it was British Airways, and now British Gas/Centrica has threatened thousands of employees with fire and rehire tactics, including a number of my constituents, such as Wayne and Paul. These people have many decades of experience working for these British companies and our society. Will the Minister join me in condemning the company’s actions? What action is the Department taking to ensure that these deplorable approaches are dealt with? Write to them.

[Paul Scully]

It is not acceptable for employers to use unacceptable negotiating tactics, including fire and rehire. I understand that it is a difficult situation for employees to find themselves in. There are commercial matters between employers and employees, but we expect employers to treat their staff in the spirit of partnership. In the vast majority of cases—unlike the ones that have just been outlined—employers do want to do the right thing, and there are processes in place to prevent abuse.

[Andy McDonald (Middlesbrough) (Lab)]

Heathrow, British Airways and British Gas—all flagship companies—have used abusive fire and rehire tactics to cut the pay and conditions of their loyal work forces. Rolls-Royce in Barnoldswick is home of the jet engine and the battle of Britain aircraft. Hundreds of staff there are being made redundant and their jobs offshored to Singapore, Spain and Japan. These iconic companies have received billions of pounds of taxpayers’ cash, so why did the Government not make retaining jobs a condition of this financial help? Does the Minister recognise that by providing no-strings-attached support, the Government have facilitated UK jobs being either downgraded or moved out of the country at the taxpayers’ expense?

[Paul Scully]

We have worked with and supported the aviation sector in a number of different ways. We have also made it really clear that when companies want to make redundancies, they should follow the correct consultation process. It is important that we get the balance right to protect jobs for those companies.

[Rosie Cooper (West Lancashire) (Lab)]

What assessment he has made of the effectiveness of covid-19 financial relief in supporting growth in the hospitality sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

We have engaged with businesses to understand their needs at this challenging time. We are providing an unprecedented support package, including an extension of the coronavirus job retention scheme until 31 March 2021, grants, loans, rates relief and a VAT cut.

[Rosie Cooper [V]]

Many plumbers, electricians and other self-employed people, including sole traders, have been left out of Government support. What can the Minister say to people who have worked hard all their lives and paid their taxes, and have seen their businesses collapse through no fault of their own? This includes the hospitality sector. Can the Government commit to providing further support, as local publicans in my area say that the tiny grant they got does not even get close to covering their overheads?

[Paul Scully]

I was self-employed, running companies, for most of the 25 years that I was working before I was elected to this place; there but for the grace of God go I. I will continue to reflect the views of the self-employed in conversations with the Treasury. I also speak to the hospitality sector every single week and will be doing so later today. We have allocated £40 million extra to wet-led pubs, in addition to extending the moratorium on rent evictions and legal processes facing tenants, the VAT cut and the business rates relief.

[Bill Esterson (Sefton Central) (Lab)]

What assessment he has made of the level of greenhouse gas emissions generated by (a) imports to and (b) exports from the UK.

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[Jim Shannon (Strangford) (DUP)]

What discussions he has had with the Chancellor of the Exchequer on the Government’s proposed review of alcohol duty; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

We are in regular contact with the Chancellor on measures to support hospitality businesses. The alcohol duty review aims to improve the current system to make it simpler, more economically rational, and less administratively burdensome on businesses and Her Majesty’s Revenue and Customs.

[Jim Shannon]

I thank the Minister for his response, but can he outline what steps have been taken to address the binge culture, which has been enhanced by supermarket offers, especially in these times when we all need to have our wits about us?

[Paul Scully]

We looked at the curfew, for example, when there were stories coming back to us about people coming out of pubs and going straight into supermarkets to buy more drinks. That was an unintended consequence, so it is good that we reviewed that and changed it. The alcohol duty review will take into account the balance between supermarkets and hospitality.

[Chris Loder (West Dorset) (Con)]

What steps he is taking to support small businesses in areas under tier 2 covid-19 restrictions.

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[Robert Largan (High Peak) (Con)]

In High Peak, we are lucky to have the best pubs, restaurants, hotels and small businesses anywhere in the country. However, these businesses, by their very nature, are highly seasonal and many of them depend heavily on the busy Christmas period. Unfortunately, despite having a case rate lower than the national average, High Peak is in tier 3. Can my hon. Friend make representations to his ministerial colleagues about getting High Peak out of tier 3 as fast as possible, and make certain that as much support as possible is provided to the affected businesses?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I thank my hon. Friend for that. He is a big champion for his local pubs, for which I know there will be a lot of competition. Yes, the review will be in the next couple of days, and I hope we will see a number of pubs being able to open at that point, because that is what they want. Government support has been welcomed, but customers coming back through the doors, especially in the busiest months, is what we all want to see.

[David Linden (Glasgow East) (SNP)]

  The Secretary of State will know that not all businesses need to re-furlough staff, and many that do not were counting on the £1,000 per employee job retention bonus. However, this has been scrapped, blasting a black hole in the books of countless businesses across the UK. The Treasury will not say when or how the scheme will be replaced, so can his Department perhaps give businesses some certainty over the billions in support that have been snatched away from them without warning?

[Dr Luke Evans (Bosworth) (Con)]

    The Government are focused on supporting the NHS, opening schools, getting businesses back working, and getting gyms open and leisure facilities going again, but of course the last lever is hospitality and socialising. With the advent of a vaccine, will my hon. Friend have a meeting with the Treasury to put together a pathway and a package of support for those industries most affected, such as the weddings, events, office, conference and travel industry?

[Paul Scully]

I thank my hon. Friend, who has raised the issue about weddings and events with me on a number of occasions. We continue to work with the Treasury to see what more we can do to support the hospitality sector as a whole. I am really looking forward to working with the weddings taskforce, which has been set up by the sector itself, to see what a covid-19 secure wedding looks like and how we can introduce that when the health science allows.

[Stephen Kinnock (Aberavon) (Lab) [V]]

  The GMB, Unite and Unison trade unions are fighting hard for workers who are being fired and then rehired on worse terms and conditions. What is the Secretary of State doing to ensure that companies such as British Gas are negotiating in good faith with the workforce, not imposing these completely unacceptable practices on them?

[Paul Scully]

We call out British Gas and other employers if and when they are using unfair pressure in negotiations, but we do say that we need to retain flexibility as well, so that big companies can save as many jobs as possible in difficult times.

[Julian Sturdy (York Outer) (Con) [V]]

With the imminent review of tiers, can Ministers reassure me that they are pushing firmly within Government on the fact that many businesses, especially in places such as York, where the virus is very low, are at the stage where they can no longer be subsidised for low footfall or to stay closed, but need to be able to trade as normally as possible ultimately to survive?

[Paul Scully]

I know the hospitality business in York has been affected, as it has around the country. Yes, we will continue to look at this and, when the data allows, we will move York and other areas into more forgiving tiers. For the hospitality sector—as I say, it welcomes Government support, largely, but wants customers—this is what is going to help the pubs, bars and restaurants in York and beyond to be able to survive and thrive.

[Bill Esterson (Sefton Central) (Lab) [V]]

Many freelancers and self-employed people have had little or no financial support. They do not qualify for furlough, for the self-employed scheme or for business grants. With billions of pounds being returned in tax relief for business rates by the major retailers, why are Ministers not using that money, as the retailers are suggesting, to support those hundreds of thousands of people who have had little or no financial support so far?

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[Paul Scully]

If the hon. Gentleman has specific examples, I will be very interested to hear about them, but the United Kingdom Internal Market Bill is there to provide certainty—to provide access for Northern Ireland to GB and vice versa.

[Mary Robinson (Cheadle) (Con)]

Whistleblowing is valuable to organisations and society. What steps is my right hon. Friend taking to prepare for ISO 37002, the new international standard for whistleblowing, and can he reassure my constituents that whistleblowers in the UK will enjoy enhanced protection to the same degree as, or greater than, that provided by the forthcoming EU directive?