Oral Answers to Questions Debate

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Department: HM Treasury
Tuesday 20th October 2020

(3 years, 5 months ago)

Commons Chamber
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Emma Lewell-Buck Portrait Mrs Emma Lewell-Buck (South Shields) (Lab)
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What plans he has to provide additional economic support to areas affected by local covid-19 restrictions; and if he will make a statement. [907774]

Afzal Khan Portrait Afzal Khan (Manchester, Gorton) (Lab)
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What plans he has to provide additional economic support to areas affected by local covid-19 restrictions; and if he will make a statement. [907779]

Rishi Sunak Portrait The Chancellor of the Exchequer (Rishi Sunak)
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Earlier this month, I announced that businesses forced to close as a result of local restrictions will be eligible for a grant of up to £3,000 a month. Their employees will be protected through the expanded job support programme and councils will receive extra resources to help with local track and trace, enforcement and compliance.

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Rishi Sunak Portrait Rishi Sunak
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I am glad the hon. Lady recognises the economic damage that lockdowns do, which is why, when we had this debate last week, I did pose the question as to why the Opposition were suggesting a national lockdown with no end in sight without commenting on the damage that would do to people’s jobs and livelihoods. With respect to support for local authorities entering tier 3, as I have set out there is a national funding formula that provides a per capita amount to the local authority of up to £8 per head at the highest tier to provide support for local enforcement, compliance and track and trace. On top of that, there is support that the national Government provide for businesses that are closed. Their employees can be put on the job support scheme, and, in addition, my right hon. Friend the Communities Secretary can talk to local authorities about providing bespoke extra support as required.

Afzal Khan Portrait Afzal Khan [V]
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People and businesses in my constituency and across Greater Manchester are suffering. They are facing an uncertain winter with insufficient support. Last night, the Government offered just £22 million to the 2.8 million people in Greater Manchester. That comes to just £8 a head to support local people and businesses during the months ahead. Other areas were given double that amount, despite having just half the population. Does the Minister seriously believe this is a fair deal for Greater Manchester, and, if so, would he like to take this opportunity to apologise to those Mancunians who will lose or have already lost their livelihoods?

Rishi Sunak Portrait Rishi Sunak
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With the greatest respect, the hon. Gentleman is mistaken in his characterisation of the support provided and confusing two different things. He is absolutely right: the support is £8 a head. That is the national funding formula that is provided to all local authorities entering tier 3. That is the same as is provided in Lancashire and indeed, in the Liverpool city region, and that is the amount that he refers to, which is done on an equitable basis for all local authorities. The additional amounts he talks about were reached in negotiation with my right hon. Friend the Communities Secretary and representatives of the Government. That offer remains available to Greater Manchester, and that is why I hope they engage in these negotiations constructively.