Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is planning to take to help cover employment costs for businesses in the hospitality, tourism, sport and entertainment sectors affected by required closures and social distancing rules due to the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises the extreme disruption the necessary actions to combat Covid-19 are having on businesses and sectors like hospitality, tourism, sport and entertainment across the UK.
We are introducing a new Job Support Scheme from 1 November. Employees must work a minimum of 33% of their normal hours, and in return, will receive at least 77% of their salary. For every hour not worked, the government and the employer will each pay one third of their remaining salary up to a cap of £697.92. Large businesses will be required to demonstrate that their turnover has suffered as a result of COVID-19.
The Government has provided unprecedented support for individuals and businesses during the pandemic, and on 24 September the Government announced additional support measures as part of the Winter Economy Plan. In addition to the new Jobs Support Scheme, the Winter Economy Plan includes measures such as:
Earlier this month, the Government also announced the Local Lockdown Grant Fund (now called the Local Restrictions Support Grants), to enable Local Authorities in England to provide business properties which are required to shut due to nationally-imposed local lockdowns with grants of up to £1,500 for each three week closure period.
We will continue to monitor the impact of government support with regard to supporting public services, businesses, individuals, and sectors such as hospitality, tourism, sport and entertainment as we respond to this pandemic.
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, given how the overseas aid budget is determined, what adjustment will be made to the value of that budget in 2020-21 to reflect the fall in GDP.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The UK has a legal commitment to spend 0.7% of its gross national income (GNI) each year on Official Development Assistance (ODA). The government reviews the ODA funding it allocates to projects on a regular basis in order to ensure delivery of its commitment to spend 0.7% of GNI on ODA. Since this commitment is linked to the size of the economy, the level of ODA spend is likely to decrease this year.
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the number of people who will return to work from furlough as the Coronavirus Job Retention Scheme ends.
Answered by Jesse Norman
The CJRS has helped over one million employers protect over 9.1 million jobs. As the country re-opens, Government support will need to be adjusted in a way that ensures people can get back to work, and get the UK economy up and running again.
The CJRS has been designed to flexibly and gradually enable employees to return to work. From 1 July, employers can bring back to work employees that have been furloughed for any amount of time and any shift pattern, while still being able to claim a CJRS grant for the hours not worked. From August to October, an employer contribution will be introduced gradually.
It is the case that some employers and sectors will be affected by coronavirus for longer than others, and the Government will seek to support these firms appropriately. CJRS is just one form of support on offer to employers during this difficult period. The Government will continue to engage with businesses and representative groups with the aim of ensuring that the support provided is right for these sectors and for the economy as a whole.
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the effect on (a) UK output and (b) tax revenues of changing the social distancing guidance from two metres to one metre.
Answered by Kemi Badenoch - President of the Board of Trade
We cannot isolate the impact of shifting from two metres to one metre in the social distancing guidance on UK output and tax revenues. However, it is clear that Covid-19 and the wider social distancing measures are having an unprecedented impact on the economy which has suffered a 20.4% fall in GDP in April.
We recognise the challenges facing businesses in adapting to the Covid-19 guidance during this time.
It is for this reason that the Prime Minister has commissioned a comprehensive review of the 2m guidance, which has been published and can be found at: https://www.gov.uk/government/publications/review-of-two-metre-social-distancing-guidance
As he announced to the House on Tuesday 23 June, where it is not possible to keep two metres apart, businesses will be able to maintain a social distance of ‘one-metre plus’ from 4 July, provided that they take precautionary steps to reduce risks to protect and customers.
The Government continues to publish Covid-secure guidance to help sectors reopen in the safest way possible, as well as continuing to take robust actions to protect jobs, income and support businesses while fighting the virus during this challenging and unique period.
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will increase the Government's financial support for (a) self employed and (b) small businesses during the covid-19 lockdown.
Answered by Kemi Badenoch - President of the Board of Trade
On April 27 the Government announced the new Bounce Back Loans (BBL) Scheme, which will ensure that the smallest businesses can access loans in a matter of just days. These loans will be from £2,000 up to £50,000, capped at 25% of firms’ turnover. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support the smallest businesses in the country. The Government will cover the first 12 months of interest payments and fees charged to the business by the lender.
Small businesses may also be able to benefit from the new Discretionary Grant Fund announced by the Government on 1 May. The Government has provided up to an additional £617m for Local Authorities in England to enable them to make grants payments to businesses which are facing high fixed property-related costs, but have been excluded from the existing grants schemes because of the way they are treated by the business rates system. Local Authorities are responsible for defining precise eligibility for these funds, and businesses will need to apply to their Local Authority in order to receive grants.
Businesses and self-employed individuals may also benefit from a range of other support measures including:
The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support.
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to support small business owners that are unable to trade during the covid-19 outbreak and depend on dividends on their shares as their source of income.
Answered by Jesse Norman
Income from dividends is a return on investment in the company, rather than wages, and is not eligible for support through the Self-Employment Income Support Scheme or Coronavirus Job Retention Scheme (CJRS). Under current reporting mechanisms it is not possible for HM Revenue and Customs to distinguish between dividends derived from an individual’s own company and dividends from other sources, and between dividends in lieu of employment income and as returns from other corporate activity. Expanding the scope would require HMRC to collect and verify new information. This would take longer to deliver and put at risk the other schemes which the Government is committed to delivering as quickly as possible.
Those who pay themselves a salary through their own company may be eligible to claim for 80% of usual monthly wage costs, up to £2,500 a month, through the CJRS. Individuals who are not eligible for the CJRS may be able to access other support Government is providing, including the Coronavirus Business Interruption Loan Scheme and the deferral of tax payments. More information about the full range of business support measures is available at?www.businesssupport.gov.uk/coronavirus-business-support/
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of goods from non-EU countries are held at EU borders for physical checks.
Answered by Jesse Norman
The European Commission collates statistics on the proportion of EU imports subject to physical control, but does not publish this data.
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the UK has financial liabilities to the EU in the event that the UK leaves the EU without a withdrawal agreement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has been clear from the outset of negotiations that if we left the EU without a deal, the UK has obligations to the EU, and the EU obligations to the UK that will survive the UK’s withdrawal, and that these would need to be resolved.
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to publish the details of arrangements for clearing goods quickly through UK ports after 29 March 2019.
Answered by Mel Stride - Secretary of State for Work and Pensions
Government ministers and officials have been engaging extensively with key UK ports to discuss the challenges that the introduction of customs declarations would pose Roll-on Roll-off (RoRo) port environment as well as potential mitigations for Day 1of a ‘no deal’.
We have also begun communicating targeted technical delivery critical messages and actions to groups of impacted stakeholders and businesses, for example on RoRo, Excise and VAT software, through our technical notices. By the end of the year, HMRC will provide more information on what people can do should they wish to make preparations and when they should do this.
Asked by: John Redwood (Conservative - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to announce the rate of customs levies charged on the UK for 30 March 2019 as part of the planning for the UK leaving the EU without a deal.
Answered by Mel Stride - Secretary of State for Work and Pensions
We are focused on negotiating an ambitious future relationship with the EU, which secures frictionless access at the border to each other’s markets for goods.
However, in the event of a “no deal” the Government will determine and publish these new UK duty rates before we leave the EU.