Oral Answers to Questions

Edward Miliband Excerpts

Tuesday 21st July 2020 Commons Chamber

[Alok Sharma]

My hon. Friend highlights an important point. Throughout the covid-19 period, the Government have provided unprecedented support for employment and worked in close partnership with the business community. I understand that it continues to be a difficult time for many businesses, but as he highlights, in that spirit of partnership, we expect all employers to treat their employees fairly and follow the rules.

[Edward Miliband (Doncaster North) (Lab)]

I want to return the Secretary of State to the question asked by the hon. Member for Penrith and The Border (Dr Hudson) about the many businesses that are part of the 3 million ExcludedUK group. They include over 2 million people who are essentially self-employed but have been disqualified from help under the self-employment scheme for various—often arbitrary—reasons. In many cases, this is not simply rough justice but deep unfairness. Many of these individuals are not high earners. Will the Secretary of State give an indication that he recognises that this is an injustice, and can he tell us how he plans to address it?

[Alok Sharma]

The right hon. Gentleman will also acknowledge that the Government have provided unprecedented support to businesses across the whole economy. As I said, the key right now is to support businesses to open, to get the economy up and running. That is the best way that we can support businesses across the United Kingdom.

[Edward Miliband]

This issue of 3 million people being excluded is not going away. Let me ask him about the winding down of the furlough scheme. Yesterday, Make UK, the manufacturers’ organisation, said that a furlough extension was vital to prevent a “jobs bloodbath” in aerospace and automotive. We see the looming threat too in sectors that have not yet reopened, such as events and exhibitions, and those operating well below capacity, such as hospitality. Yet from next week, the Government are insisting that every single employer, whatever their industry, will have to start contributing to the furlough. Does the Secretary of State not recognise that this decision to phase out the furlough, irrespective of circumstances, risks handing a P45 to hundreds of thousands of workers?

[Alok Sharma]

The furlough scheme will have been up and running for a full eight months, providing a huge amount of support for more than 9 million jobs. It is becoming more flexible and allowing people to return to work part time. The right hon. Gentleman will know that the Chancellor has also set out the job retention bonus which, if it is taken up by all employers, will represent a £9 billion boost for the economy. I say to him again that the key is to get the economy up and running and to get businesses trading.