Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the furlough scheme for (a) the exhibition and conference sector and (b) other sectors which require long lead-in times to re-establish operations.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Chancellor of the Exchequer has said there will be no further extensions or changes to the Coronavirus Job Retention Scheme (CJRS).
After eight months of the CJRS, the scheme will close at the end of October.
The introduction of flexible furloughing further ensures that firms can adjust how they furlough to match their speed of reopening. Firms will be able to claim flexibly under the CJRS until October.
It would be challenging to target the CJRS to specific sectors in a fair and deliverable way, and it may not be the case that this is the most effective or sensible way to provide longer term support for those sectors who may not yet be reopening.
The Government will continue to engage with businesses and sectors with the aim of ensuring that the support provided is right for those sectors and for the economy as a whole.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to take shares in any companies bailed out through Project Birch at the outset; and whether loans are the only option available to companies initially.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The government has always considered providing support to strategically important companies that can reasonably be expected to have a long-term viable future, and whose failure or distress could cause disproportionate harm to the UK economy or society. Companies should also demonstrate they have exhausted all other financing options (including support from existing shareholders and lenders).
Each case will be considered individually, and any support provided will be bespoke to the company’s needs.
Where intervention is deemed to be appropriate, it will be on terms that protect the interests of current and future taxpayers, with existing shareholders and lenders expected to share in the financial burden.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what timescale the Government plans to allow companies to seek Government funding for bailouts under Project Birch.
Answered by Kemi Badenoch - Leader of HM Official Opposition
As part of its normal operations the government has always considered providing support to strategically important companies that can reasonably be expected to have a long-term viable future, and whose failure or distress could cause disproportionate harm to the UK economy or society. Companies must have exhausted all other options before being considered, and any support given is on terms that protect the taxpayer, with existing lenders and shareholders expected to contribute to, and share in, the financial burden.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the timescale is for loans provided to companies bailed out through Project Birch to be converted into shares; and what conditions the Government plans to attach to such conversions into shares.
Answered by Kemi Badenoch - Leader of HM Official Opposition
As part of its normal operations the government has always considered providing support to strategically important companies that can reasonably be expected to have a long-term viable future, and whose failure or distress could cause disproportionate harm to the UK economy or society. Companies must have exhausted all other options before being considered, and any support given is on terms that protect the taxpayer, with existing lenders and shareholders expected to contribute to, and share in, the financial burden.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he has taken to prepare a new mandate for UK Government Investments to manage new shareholdings in bailed out companies.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The government will keep the management of assets from the COVID-19 response under review.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how the Government plans to monitor companies’ compliance with any conditions that are attached to bailout loans and to hold those companies accountable if those conditions are breached.
Answered by Kemi Badenoch - Leader of HM Official Opposition
As part of its normal operations the government has always considered providing support to strategically important companies. As with any agreement commercial and policy conditions can be attached, these are monitored using a variety of appropriate mechanisms.
Asked by: Andy Slaughter (Labour - Hammersmith and Chiswick)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the business rates holiday for 2020-21 to supply chain businesses servicing the retail, leisure, and hospitality sector that ceased trading as a result of the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has provided enhanced support to the retail, hospitality and leisure sectors through the business rates holiday, given the acute impacts of COVID-19. The Ministry for Housing, Communities and Local Government has published guidance for local authorities on eligibility for the relief, which excludes properties that are not reasonably accessible to visiting members of the public.
A range of measures to support all businesses has also been made available, including the new Bounce Back Loans scheme, the Coronavirus Business Interruption Loan scheme, and the Coronavirus Job Retention Scheme to help firms continue to keep people in employment.