Self-employed Persons: Financial Support

Graham Brady Excerpts

Tuesday 24th March 2020 Commons Chamber

[Steve Barclay]

The right hon. Gentleman is right to emphasise the importance of timing and speed in this regard. He spoke about how that can be targeted and the fact that there are many very deserving causes within the population, but it is probably useful to draw the House’s attention to the fact that one in 10 of those who are self-employed are over state pension age. Over two in 10, according to the 2017-18 figures, were earning less than £2,000, which suggests that it was not their main source of income. Between one and a half and two out of 10 are already on universal credit. Some remainders will be quite well paid, such as law partners and so on, and some will be in employment and returning self-employment tax forms for part of their income in addition to their employment. The point is that the population itself is complex and we need to ensure that the measures are targeted correctly.

The right hon. Gentleman raised the mechanism. One of the themes that has informed the Treasury’s approach is this: what is operationally deliverable? That is one of the things we are working through. For example, HMRC does not hold people’s bank accounts, which is why the support the package for those in employment was through the PAYE—pay-as-you-earn—system. As my right hon. Friend the Chancellor set out at Treasury questions, tax data is one and a half years old. Those are the issues we are working through. The right hon. Gentleman is absolutely right that urgency is important—that is why the Chancellor is engaged on this—but we are seeking to target a complex population.

[Sir Graham Brady (Altrincham and Sale West) (Con)]

Recognising the complexity of solving this problem, can my right hon. Friend give some indication of how quickly we can expect to have at least an interim solution in place for those who are desperate for help and desperate for clarity at this point?

[Steve Barclay]

For some within this population—not all—there will be some solution already through the £5 million loan that is available as of yesterday. That will not cover the entirety of this population, but, in accordance with the business needs of some who are self-employed, there is support. For some of the population—again, by no means all—there will be some relief through some of the measures the Chancellor set out on property and business rate relief, but part of the complexity of the target population is that different measures work for different groups. That is part of what my right hon. Friend the Chancellor is working through, but I recognise the point my hon. Friend the Member for Altrincham and Sale West (Sir Graham Brady) and others have raised. We do recognise the importance of timing on this issue.