Asked by: Alex Norris (Labour (Co-op) - Nottingham North and Kimberley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the level of additional business support grants required by businesses in sectors that will remain closed for an extended period after the lockdown is eased.
Answered by Paul Scully
The Small Business Grant Fund (SBGF) and the Retail, Hospitality and Leisure Grant Fund (RHLGF) are just a part of the Government’s unprecedented package of support for businesses to help with their ongoing business costs in recognition of the disruption caused by Covid-19.
On 1 May 2020 the Business Secretary announced that up to £617 million is being made available to Local Authorities in England to allow them to provide discretionary grants. This is an additional 5% uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF).
The additional Local Authority Discretionary Grants Fund is aimed at small businesses with ongoing fixed property-related costs but not liable for business rates or rates reliefs.
We are asking local authorities to prioritise businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates.
Local Authorities are responsible for defining precise eligibility for this fund and may choose to make payments to other businesses based on local economic need, subject to those businesses meeting the specific eligibility criteria. Businesses already in receipt of the Small Business grant, a Retail, Hospitality and Leisure grant or Self-employed Income Support Scheme payment are not eligible.
Businesses which are not eligible for the grants schemes should be able to benefit from other measures in the Government’s unprecedented package of support for business, including:
o An option to defer VAT payments by up to twelve months;
o The Coronavirus Business Interruption Loan Scheme, now extended to cover all businesses including those which would be able to access commercial credit;
o The Bounce Back Loan scheme, which will ensure that small and micro businesses can quickly access loans of up to £50,000 which are 100% guaranteed by the Government;
o The Coronavirus Job Retention Scheme, to support businesses with their wage bills;
o The Self-Employment Income Support Scheme, to provide support to the self-employed.
Asked by: Alex Norris (Labour (Co-op) - Nottingham North and Kimberley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make an assessment of the potential merits on an application to the European Commission for a derogation of State Aid rules in relation to local authority business support grant payments.
Answered by Paul Scully
Although the UK has left the EU, under the terms of the Withdrawal Agreement, the EU State aid rules continue to apply in the UK until the end of the Transition Period.
Whilst the European Commission has declined to suspend the State aid rules because of the Coronavirus pandemic, the Commission has introduced some welcome flexibilities into the rules to deal with the impacts of the Coronavirus, in the form of a Temporary Framework. This facilitates aid going to the companies who need it most, quickly and efficiently.
Following work by BEIS officials, the COVID-19 Temporary Framework was approved by the Commission under the Temporary Framework on 6 April. This allows public authorities to introduce their own aid measures without the necessity of obtaining an individual Commission approval. This provides cover for measures such as the Retail Hospitality and Leisure grants from local authorities.
I would also add that other local authority support, such as Small Business grants, can be given under the normal de minimis rules. These allow up to EUR 200,000 to be given to a business in a three-year period. De minimis aid can be received in addition to Temporary Framework aid.
The combination of these and other measures constitute an unprecedented programme of Government support for business to address the impacts of the Covid-19 pandemic.
Asked by: Alex Norris (Labour (Co-op) - Nottingham North and Kimberley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether pub businesses with fewer than 50 employees are eligible for payments from the discretionary fund for local authorities announced on 2 May 2020.
Answered by Paul Scully
On 1 May 2020 the Business Secretary announced that up to £617 million is being made available to Local Authorities in England to allow them to provide discretionary grants. This is an additional 5% uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF).
The additional Local Authority Discretionary Grants Fund is aimed at small businesses with ongoing fixed property-related costs but not liable for business rates or rates reliefs.
Pub businesses with less than 50 employees, not directly liable for business rates and thus not eligible for either Small Business or Retail, Hospitality and Leisure Grants, could be in-scope subject to them being in business on 11th March, not having received any other Government grant funding, having ongoing relatively high fixed building-related costs (e.g. rent and service charges) and experiencing a significant loss of income due Covid-19 impacts. Local authorities will run these schemes locally.
Asked by: Alex Norris (Labour (Co-op) - Nottingham North and Kimberley)
Question to the Department for Business, Energy and Industrial Strategy:
Whether the Government has made an estimate of the number of businesses that do not qualify for the Government’s covid-19 grant schemes.
Answered by Paul Scully
Local Authorities are responsible for identifying and contacting eligible businesses for either the Small Business Grants or the Retail, Hospitality and Leisure Grants. No assessment has been made of the number of businesses not qualifying for the schemes; rather we estimate about 1 million businesses will benefit.
I am personally calling local authorities that have reported slow progress to offer any support they need to get grants out to businesses as soon as possible.
Asked by: Alex Norris (Labour (Co-op) - Nottingham North and Kimberley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department plans to increase the resources allocated to labour inspection and labour law enforcement.
Answered by Kelly Tolhurst
The Government is exploring options for a single labour market enforcement body – we will publish proposals on this for consultation shortly. More recently we announced that this consultation will consider extending the Gangmasters and Labour Abuse Authority’s licensing scheme to further sectors and that we will ensure trade unions and businesses are consulted on the strategic direction of labour market enforcement.
As part of the forthcoming Spending Review we will consider what level of funding is appropriate to ensure that it is adequately resourced to deliver its strengthened remit.
Government is committed to ensuring fair and effective enforcement. We have taken concrete measures to increase the number of labour market inspectors and extend their coverage.
The Good Work Plan went further, setting out a number of measures to improve state enforcement of core employment rights. In addition to introducing state enforcement of holiday pay for vulnerable workers, we also committed to expand protection of agency workers to cover umbrella companies.
Asked by: Alex Norris (Labour (Co-op) - Nottingham North and Kimberley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has plans to make (a) the Advisory, Conciliation and Arbitration Service and (b) other services more accessible for non-English speaking workers.
Answered by Kelly Tolhurst
Acas has a contractual relationship with ‘The Big Word’ to provide translation services. This commenced in July 2017 following the end of a contract with a previous provider. Acas are contacted by customers who require a translation service approximately 536 times per month, and the majority of these contacts are customers phoning their employment law Helpline for advice. Acas are supplied by ‘The Big Word’ with translators which cover many languages with Polish being the most popular, though they have used translators who are able to speak less common languages such as Turkmen.
The Employment Agency Standards Inspectorate, based in BEIS, provides support direct to agency workers and also offers translation facilities through ‘the Big Word’.
Asked by: Alex Norris (Labour (Co-op) - Nottingham North and Kimberley)
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 ensure that gas and energy (a) interconnectors, (b) import export routes and (c) infrastructure mechanisms will remain fully functional after the UK leaves the EU.
Answered by Claire Perry
As set out in our Technical Notice the Government is working closely with Ofgem, interconnectors and wider industry on the steps needed to maintain continued cross-border energy trading. This includes supporting engagement with EU Member State authorities. The Government does not anticipate changes to non-EU import export routes for gas by EU exit and there are no non-EU import export routes for electricity.