Public Health Restrictions: Government Economic Support

Joanna Cherry Excerpts

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

I know that my hon. Friend is a strong champion of the aviation sector, not least because he and I have discussed the issue. I know he has championed it within Government. It is not the case that the aviation sector has not had support. I pointed earlier to the £8.5 billion through the corporate financing facility. In terms of Government focus on the sector, he is absolutely right that it is an important sector for the UK to focus on. We have the largest aviation network in Europe, the third largest in the world. My hon. Friend draws attention to an important sector, and that is why my right hon. Friend the Secretary of State for Transport has launched a global travel taskforce, and is working with the travel industry as part of that.

[Joanna Cherry (Edinburgh South West) (SNP)]

Local lockdowns affect a far wider range of businesses than just those that are forced to close. Food and drink suppliers such as Edinburgh Beer Factory in my constituency will be severely affected. Small and medium enterprises such as that are the backbone of the Scottish economy, so why has the Chancellor’s furlough replacement scheme so drastically slashed support for innovative and thriving businesses such as the Edinburgh Beer Factory?

[Steve Barclay]

It has not. It has provided a universal offer to all firms that are able to be open, for exactly the reason at the heart of her question. She is quite right that the displacement impact goes far beyond areas in tier 3 or tier 2. Businesses supplying them are affected. We had a question earlier about support for the fishing industry. One of the key challenges with the fishing industry was exactly the point to which she refers—they were supplying other businesses that had been affected, and that is why we put £10 million of support into that sector.

We have taken a universal approach. It is at odds, though, with the questions we often get in the House, which are very much about whether we can support this sector or that sector. We have taken a universal approach because we recognise that one cannot necessarily draw a geographical line around the suppliers of businesses that are impacted.