The Economy

Lilian Greenwood Excerpts

Wednesday 8th July 2020 Commons Chamber

[Steve Barclay]

The hon. Lady highlights an extremely important sector, not least in terms of its profile. Many women work in that sector, and often those incomes are extremely important to their households as well. At Treasury oral questions yesterday the Chancellor expressed our desire to get those sectors up and running as quickly as possible. The hon. Lady will know that we have already taken significant steps to support them, not least through the £10,000 and £25,000 grants that were offered, which included many within the sectors that she highlights.

Today the Government made it clear that we are ready to take further action as necessary, just as we have done throughout this crisis. That is why the self-employed income support scheme will open for a second and final round of grants between 17 August and 19 October. Likewise, the job-retention scheme has been extended until the end of October, with new, more flexible terms to support people back to work. But with the best will in the world, no Government can reasonably save every single job in these circumstances; nor can the furlough scheme, successful as it has been, last indefinitely.

[Lilian Greenwood (Nottingham South) (Lab)]

Of course the Minister is right that the furlough scheme cannot continue forever. However—I listened to his response to the hon. Member for Bath (Wera Hobhouse) about the beauty sector—surely we need different approaches to the sectors that have been able to reopen and those that are currently still closed. Surely the sectors that are still unable to open, and potentially may not be able to open for quite some time, such as theatres, music venues and beauty therapists—a range of sectors—need something more flexible. Why has he not considered something more flexible with regard to the job-retention scheme?

[Steve Barclay]

We have been flexible. The hon. Lady mentioned theatres: we announced a package of £1.57 billion-worth of support as part of the flexibility of which she speaks. People also seem to ignore the fact that we are only halfway through the furlough scheme. It runs until October—we are four months in. The intention, as part of this second phase, is to reopen the economy, including these businesses. As the Chancellor set out, we do not think it is good for people to be away from the labour market for an extended period because skills atrophy, and that is not in their interests.

--- Later in debate ---

[Wes Streeting]

I strongly agree, and it will not surprise the hon. Gentleman that I will come on to make exactly that point.

For some people in secure jobs and on decent pay, the lockdown restrictions have been an opportunity to clear the credit card or build up savings, but for so many others—particularly the young and the low-paid—the labour market shock has been severe, and so has the impact on their pockets. Behind every one of these statistics are people—families and communities who have played their part in getting our country through this crisis, keeping our supermarkets stocked and essential services running; caring for us when we need it, from the brilliant staff who work in our NHS to the dedicated, often disgracefully low-paid and, this week, it seems, maligned staff who work in our care homes; and, with some notable high-profile exceptions, doing everything that was asked of them, staying home to save lives, looking out for their neighbours and volunteering in their communities. It is a truly national response, and it is not over yet. Coronavirus is the biggest crisis of most of our lifetimes. A resurgence of the virus remains the biggest threat to lives and livelihoods at the present time. And the health of our economy cannot be separated from the health of our country. That is why the Government’s failure to put in place an effective track and trace system is so concerning. The Chancellor did not mention it this afternoon, but he knows as well as we do that, without it, the risk to public health and to our economy are that much greater.

[Lilian Greenwood]

Does my hon. Friend share my concern that while the measures to protect and promote the hospitality sector were very welcome, some people might choose not to go out to restaurants and cafés for reasons that are less about being able to bear the cost of buying meals out and more about their concern as to whether they will be putting themselves and their families at risk by doing so?

[Wes Streeting]

My hon. Friend is absolutely right, because, as events in Leicester have shown, the virus has not gone away. Local lockdowns, or, God forbid, another national lockdown in the event of a second peak, would deliver a knockout blow to so many businesses struggling to get back on their feet, and as my hon. Friend has just alluded to, those businesses will continue to struggle unless the public are given the confidence they need to go out and start spending money again.

Since the start of this crisis, the Government have been too slow: too slow to take the threat of covid-19 seriously; too slow to lockdown; and too slow to ramp up testing. Our criticism of the Government’s approach to track and trace is not unreasonable; this is not mission impossible. Today, the German embassy in the UK is tweeting to invite British citizens to download its Corona-Warn-App before visiting Germany, and British people are replying to the German embassy here in London asking if they can use it here in the UK. We are not even demanding the world-beating track and trace system the Government promised; we just want a system that works.

In a spirit of national unity and common purpose, we sought to work with the Government wherever possible. We have helped expedite emergency legislation through the House, and we have supported many of the measures taken to respond to the health emergency and to the economic crisis. Where Government have fallen short, we have suggested alternative approaches, and to be fair to the Government they have been prepared to listen. They listened when they introduced the job retention scheme, which we had called for and the TUC helped design, and later when the Chancellor came back with support for the self-employed that has been a lifeline to so many.

In the same spirit, we called on the Chancellor to take immediate action to tackle youth unemployment, and we pointed to the future jobs fund introduced by the last Labour Government as a model. Today’s kick-start announcement is exactly that, and we welcome it. In fact, the greatest compliment I can pay to the Chancellor from this Dispatch Box is that in announcing the kick-start scheme earlier he sounded like Gordon Brown and Alistair Darling. Maligned by the Conservatives at the time, history has been kinder to them than the Conservative Opposition of the day were; their leadership is rightly recognised by the Chancellor today, and that is to his credit.

But I do want to impress on the Chief Secretary the following point before he returns to the Treasury. The success of Labour’s future jobs fund was in no small part thanks to the hard work of the third sector and local authorities in delivering it, all of which are now in a far worse position than they were when the financial crisis hit. They have already stepped up in response to this crisis. Charities have been on the frontline of responding to covid-19, at the same time as the virus has plunged so many of them into financial crises of their own. They are at the heart of community resilience, public service delivery and tackling some of the biggest challenges of our time; we need them to come through this crisis and out the other side, so that they can help our country to do the same.

Councils were asked to do whatever it takes, whatever the cost, and they did. They have delivered food parcels to those shielding and made contact with those isolated and at risk. Their workers have kept essential services running at personal risk to themselves, and they have delivered Government grants to the businesses that need them with remarkable speed and efficiency. We have also seen endless examples of their creativity and ingenuity throughout their crisis response. The Mayor of London has worked closely with London boroughs to get rough sleepers off the streets and into safe harbour, and they are working together now to end rough sleeping for good. My own local council procured step-down accommodation for covid patients leaving hospital in order to delay the immediate discharge of those patients into care home settings to help control the spread of the virus. The Mayor of Greater Manchester, Andy Burnham, provided a loan to a local business to help it scale-up PPE production during the national shortage. While the Government dithered and delayed over supports for arts and culture, the Mayor of Liverpool City Region, Steve Rotheram, was already delivering it through his music fund and film and TV development fund. Councils such as Staffordshire County Council and Brighton and Hove City council have provided additional support to community groups and third-sector organisations, recognising the important role that they are playing in the crisis response.

Today, those local authorities are in far worse shape after a decade of cuts from Conservative Government and the double whammy of rising costs and lost revenues as a result of this crisis. The Secretary of State for Housing, Communities and Local Government promised to reimburse them, but so far he has failed to deliver and, after a decade of Tory cuts, they cannot afford to pay for the opportunity to sit next to him at the next Conservative fundraiser in the hope of a favourable decision coming out of the Government.

--- Later in debate ---

[Wes Streeting]

It seems to me that people who have been excluded require exactly the same sort of assistance as people who have been included, which is direct support to protect their incomes. We would be very happy to sit down with the Treasury to discuss how to bring that about.

Turning to climate change, the Chancellor promised a green recovery with concern for the environment at its heart. What we actually got today was a scaled-back ambition that fell well short of what the Committee on Climate Change and climate change justice campaigners were looking for. The Conservative manifesto promised £9 billion for energy efficiency. Today the Chancellor announced just £2 billion, which is about a fifth of what they promised people before the election. If the crisis has taught us anything, it is that there is such a thing as too late. It is this decade to 2030 where action will really count if we are to prevent catastrophic climate breakdown —not the next 30 years to 2050, but the next 10 years to 2030—so where was the green new deal? A green industrial strategy will get our country back on track to meet its climate obligations in the longer term, but it can also be the shot in the arm our country needs in the shorter term, creating new jobs and delivering improvements to our quality of life.

[Lilian Greenwood]

I thank my hon. Friend for giving way. He has been very generous. We should have a three-point test for the Government’s infrastructure investment: does it involve local firms and deliver better local jobs? Does it provide opportunities to upskill local people? Will it reduce carbon emissions and ensure that this is a green recovery that gets us back on track to zero emissions?

[Wes Streeting]

I know you are watching the clock, Madam Deputy Speaker, but the good thing about that intervention is that I no longer have to repeat those points in my speech. I agree entirely.

Finance Bill

Lilian Greenwood Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution
Monday 27th April 2020 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

Next week is the 10th anniversary of my election to this House. There have been some memorable moments in that time, but none as discombobulating as making a speech sitting in my own kitchen.

However, if the surroundings are very unusual, some of the concerns we are debating today are not. For too long, the UK economy has not been working for many of my constituents, particularly the lowest paid. While they are working hard but struggling to make ends meet, there are others who simply have not played by the rules, whether they are multinational tech giants avoiding billions of pounds of tax or wealthy individuals and companies failing to pay their fair share.

In recent weeks, we have seen more clearly than ever how much we rely on our key workers, whether the staff in our NHS, careworkers, teachers, bus drivers, shopworkers and so many more. They deserve our thanks, of course, but they also deserve a new social contract: a recognition that the economy has to change so that they are fairly rewarded for the work that they do and that our public services receive the investment they need. For too long, real wages have been depressed and services decimated in the name of austerity, while there have been tax cuts for people and organisations that could afford to pay more.

Some of the measures in the Bill represent a step in the right direction, but they do not go far or fast enough to match the scale of the challenge. No one could have anticipated the immense shock to our economy from the measures needed to fight the coronavirus, and it places a great responsibility on the Government. As my hon. Friend the shadow Chancellor has said, it is absolutely critical that the Government now do all they can to minimise the depth and length of the economic impact.

The measures that the Government have introduced to protect businesses and individuals are welcome, but, as all Members must know, the schemes announced leave gaps—as things stand, there is a real risk that some workers and businesses will miss out on the support they need. This will lead to unnecessary damage to the economy and hardship to individuals. I hope the Minister can give us some reassurance this evening that he is listening and that he will act swiftly to close those gaps—to keep people in work, to keep businesses afloat and to keep families out of poverty.

I do not have time to speak about all the issues of concern, but it is clear that the business interruption loan scheme is not getting help to those who need it. The East Midlands chamber of commerce has told local MPs that businesses describe accessing the scheme as

“a complex and lengthy process with no consistent approach between lenders”.

Certainly, the number of loans agreed does not reflect the level of need. The chamber has called on the Government and lenders to work together to address these issues and improve the way the scheme works; I can only echo its call. I have heard from very many self-employed constituents who cannot access the Government’s support scheme, perhaps because they have a new start-up or because they run a limited company and take their income through dividends. Will the Minister address their concerns this evening?

Our social security system needs urgent change. My hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) has made five very straightforward proposals to the Government, and I hope they will adopt those to prevent more individuals and families from falling into poverty.

I would particularly like to highlight one gap that the Government must address in their support for small businesses. I know that local councils around the country have worked incredibly hard to distribute the small business grants as quickly as possible. I pay tribute to the staff at Nottingham City Council, who have ensured that over £33 million of grant funding was paid out by last Friday, processing every application they had received.

However, there is a problem. Many small businesses rent space in a multi-occupancy building—an office, a shopping centre or a small business incubator—and they pay their landlord a fee that includes rent and rates. The landlord does not qualify for small business rate relief, which means that neither the landlord nor the small business tenants can access the £10,000 small business grant. Both I and the council have written to the Chancellor on this point, and I hope the Minister can tell me that he intends to address this anomaly, which is preventing dozens, if not hundreds, of Nottingham small businesses from receiving much-needed support.

These are unprecedented times, and it is more essential than ever that we have an economic system in which those with the broadest shoulders bear the heaviest burden. I hope the Government recognise that we need a new approach to tax and spending decisions that learns from this crisis and produces a better and fairer system for the future.

Coronavirus: Employment Support

Lilian Greenwood Excerpts

Thursday 19th March 2020 Commons Chamber

[John Glen]

My hon. Friend refers to the loans. I was meeting the banks last night to make sure that these loans are accessible. The criteria for issuing them are based on the solvency of businesses prior to this crisis arising. It is absolutely clear that the banks see they have a massive responsibility to make this scheme work. That term sheet is being finalised; it may already have been finalised this morning. The banks are now working on making sure that that will be available through all their call centres and branches. He makes the suggestion of a supplementary measure, and we are looking at these things very carefully.

[Lilian Greenwood (Nottingham South) (Lab)]

A constituent of mine works in a residential home for adults with learning disabilities. Her son’s school will be closed from Monday. She does not know whether she is considered a key worker, and even if she is, as seems obvious, her son has respiratory problems, so she is uncertain whether she wants to send him to school. Her employer says she will not be paid and is not even entitled to statutory sick pay if she cannot come into work because of childcare. What should she do? Where is the clear advice and guidance, and where is the helpline for the thousands of other constituents of mine and of every single Member in this House? Where can they get answers, because they are so worried?

[John Glen]

The hon. Lady makes a reasonable point about the concerns that are being raised. That is why the Cabinet Office will give further advice today on key workers and the support that will be given. I recognise that yesterday’s announcement on schools will be a significant disruption to the lives of many of our citizens. It is very important that we put in place urgently clarity about who is involved—who is designated in those categories—and the support that will be available. I will ensure that her point, which I am sure reflects the views of many, gets to the Cabinet Office after this session.

Economic Update

Lilian Greenwood Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend for his comments. He is right: we want this scheme to be available through as many branches and outlets as possible. We are urgently working with the Prudential Regulation Authority to see whether we can onboard new providers at pace. He will understand that there are regulatory requirements, but we are seeing what we can do to speed that up.

[Lilian Greenwood (Nottingham South) (Lab)]

I welcome the increase in the small business grant to £10,000, and I understand that those grants will be distributed by local authorities. What assessment has the Chancellor made of the capacity of local councils to deliver that help, and when will businesses actually receive the money?

[Rishi Sunak]

As a former local government Minister, I have amazing faith in the capacity of our local authorities to deliver for us in this regard. They are being provided with extra resources to help deal with the administration of this money, and my right hon. Friend the Communities Secretary is already working at pace to ensure that the rebilling and processing of these grants happens in a matter of days and weeks.

Beer and Pub Taxation

Lilian Greenwood Excerpts

Wednesday 5th February 2020 Westminster Hall

[Mike Wood]

I would go further than that: in many areas, and not only rural areas, the pub is the last service, and often the last facility, in the town or village. Often, it is not just a place to drink, but also the place with the shop or where people get their hair cut. There might also be a jobs club or any number of other services there.

[Lilian Greenwood (Nottingham South) (Lab)]

The Plough Inn in Radford, which is in the inner city of Nottingham and which is also the brewery tap for Nottingham Brewery, is precisely the sort of nucleus of the local community that he has described and the landlady, Mel, is a legend. Does he agree with the managing director of Nottingham Brewery, Phil Darby, who says he is worried that if action is not taken on beer duty and small brewers relief, the price of a couple of pints in a pub will simply not be able to compete with the price in supermarkets for much longer?