Covid-19: Government Support for Business Debate
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Kevin Hollinrake
Main Page: Kevin Hollinrake (Conservative - Thirsk and Malton)Department Debates - View all Kevin Hollinrake's debates with the HM Treasury
Covid-19: Government Support for Business
Kevin Hollinrake Excerpts(2 years, 4 months ago)
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John Glen
Of course discussions will take place across government. The hon. Gentleman draws attention to the transport sector, where of course significant support has been given. However, I take on board his point.
Kevin Hollinrake (Thirsk and Malton) (Con)
I welcome the fact that the Minister and the Chancellor are meeting those in the hospitality sector this afternoon. There is no doubt that they are suffering because of some of the mixed messages we have heard in the past few days. The obvious places to help them would be by looking at VAT again, potentially reducing it back to the 5% rate until the end of March, and at the recovery loan scheme. As the Minister knows, the original schemes—bounce back loans and the Coronavirus Business Interruption Loan Scheme—did not require a forward viability test, whereas the recovery loan scheme does. It is very difficult for those in hospitality at the moment to demonstrate forward-looking viability for their businesses, so will the Minister look again at the scheme and look to reform it so that businesses can access this vital financial support?
John Glen
As ever, my hon. Friend brings sensible and credible points to the Chamber on these matters. He is very familiar with the different aspects of small and medium-sized enterprise financing. The recovery loan scheme, operational until June next year, gives a 70% guarantee to lenders, but of course we will look at all those measures in the round, and I look forward to our meeting later today on other matters.