Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to provide specific financial support for language schools which have not been included in the list of eligible business for covid-19 support to date.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government understands the many areas of difficulty for businesses caused by the COVID-19 disruption and has introduced a number of measures to support businesses through this challenging period.
The Government is making sure that people and businesses have access to the support they need as quickly as possible. The Government has supported businesses through the COVID-19 crisis through an unprecedented support package, including grants for smaller businesses, government-backed loans, and the Coronavirus Job Retention Scheme to protect jobs.
An additional £500 million has been made available via the Additional Restrictions Grant (ARG), announced by the Chancellor on 5 January. This builds on the £1.1 billion already allocated following the second lockdown in November 2020.
This further grant funding is designed to support businesses that are severely impacted by the new Covid-19 restrictions. Local authorities have discretion to use this funding to support businesses in the way they see fit, and to determine which businesses are.
I encourage English Language Schools to make full use of the extensive support available.
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will include language schools in the eligible retail and leisure categories for business rates relief to allow those schools to access support from future Government grant schemes.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has provided enhanced support to the retail, hospitality and leisure sectors through business rates relief given the direct and acute impacts of the COVID-19 pandemic on those sectors.
Eligibility for the current business grant schemes is not tied to eligibility for business rates relief provided to the retail, hospitality and leisure sectors. Businesses that are legally required to close due to Covid restrictions are eligible for cash grants from the Local Restrictions Support Grant (Closed) of up to £3,000 per month. In addition, these businesses will benefit from one-off grants of up to £9,000 as announced on 5 January.
Businesses which are not eligible for these grants for closed businesses may be able to benefit from the Additional Restrictions Grant (ARG). We recently increased the funding available under this scheme to £1.6 billion across England. It is up to each local authority to determine eligibility for this scheme based on their assessment of local economic need; however, we encourage local authorities to support businesses which have been impacted by COVID-19 restrictions, but which are ineligible for the other grant schemes.
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to ensure that the banking sector does not cease to offer business bank accounts to support people who have lost their jobs being able to set up in business or as self-employed.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Decisions about what products are offered to individual businesses remain commercial decisions for banks and building societies. It would be inappropriate for the Government to intervene in these decisions. But the Government has always been clear that lenders should open to new customers where it is operationally possible for them to do so.
Throughout the COVID-19 pandemic, there has been unprecedented demand for banking services, this accompanied with working restrictions due to social distancing has meant banks have faced significant capacity pressures which has limited their ability to meet demand. Banks are doing all they can to meet this demand in these difficult circumstances.
A number of banks remain open to new business customers, and I would encourage businesses struggling to access banking services to explore the full range of alternative finance providers.
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he will implement the Directors Income Support Scheme proposal from FSB, Forgotten Ltd and ACCA UK, which would provide a taxable grant calculated at 80 per cent of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total, to be paid into the company and form part of its taxable profits and mirror the existing framework offered by the Self-Employed Income Support Scheme.
Answered by Jesse Norman
The Government has recognised that taxpayers have faced immense challenges during the COVID-19 pandemic. It has prioritised delivering support to as many people as possible as quickly as possible, while guarding against the risk of fraud or abuse.
The Government always welcomes constructive proposals from stakeholders to improve the design of its COVID-19 business support schemes, including the suggestion for a Directors Income Support Scheme (DISS). This proposal aims to provide a new system to provide support for company directors, based on reported profits. The Government is currently scrutinising the proposal.
In addition, company owner managers could be eligible for existing support schemes including the Coronavirus Job Retention Scheme for the income taken by company owner managers via PAYE, Bounce Back loans, tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays and other business support grants. More information about the full range of business support measures is available at: www.businesssupport.gov.uk/coronavirus-business-support
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will open the Self Employed Income Support scheme to people in self-employment who were not eligible in the initial March 2020 launch of that scheme and now have two years' trading but are still not eligible for the latest round of support.
Answered by Jesse Norman
In designing and delivering the SEISS, the Government prioritised delivering support to as many people as possible as quickly as possible while guarding against the risk of fraud or abuse. The Government recognises that the rules needed to ensure that the SEISS works for the vast majority may mean that some people are not eligible for the grant. However, as the NAO acknowledges, the SEISS has been successful in supporting millions of people and protecting from large scale job losses.
The Government has taken a flexible and responsive approach and will continue to consider the matter carefully and work closely with stakeholders to explore how it can best support different groups.
The SEISS continues to be just one element of the package of support available to self-employed individuals, including Bounce Back loans, tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays, and other business support grants.
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the merits of reintroducing the (a) £10,000 through the Small Business Grant Fund and (b) targeted Retail, Hospitality and Leisure Grant Fund of up to £25,000 to assist businesses forced to close during the January 2021 lockdown.
Answered by Kemi Badenoch - President of the Board of Trade
The additional support announced on 5 January is worth £4.6 billion and comes on top of the £1.1 billion already provided to local authorities through the Additional Restrictions Grant, as well as the existing Local Restrictions Support Grant (Closed) which is worth over £1 billion per month under current restrictions. Businesses could receive up to £18,000 over the next three months to the end of March if they are required to close due to COVID-19-related restrictions.
In addition to the grant schemes, we have made available a wider package of support which includes an extension of the furlough scheme until April; an extension of the COVID-19 loan schemes until March; a business rates holiday for all retail, hospitality and leisure business properties; mortgage holidays; enhanced Time to Pay for taxes; and VAT cuts and deferrals.
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the merits of a German -style scheme where Government pays a certain percentage of revenue lost, for a business effected by covid-19 restrictions.
Answered by Kemi Badenoch - President of the Board of Trade
HM Treasury regularly monitors global economic developments, including the policy response of other economies, and their impact on the UK as part of the normal process of policy development. It is not for the UK Government to comment on other countries policies.
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of suspending the time limit for the repayment of the stamp duty surcharge on second properties where the property sale has been delayed due to (a) cladding and (b) EWS1 issues.
Answered by Jesse Norman
Homeowners who pay the higher rate of Stamp Duty Land Tax on purchases of additional property can receive a refund of the higher rate if they sell their old main residence within three years of the purchase. For most people, three years is enough time to sell a property.
However, the Government recognises that there will sometimes be exceptional circumstances not in the control of the buyer or seller which mean that a previous main residence cannot be sold within three years. If someone purchased a new main residence on or after 1 January 2017, they may be eligible to apply for a refund if they were prevented from selling their previous main residence before the expiry of the three-year time limit owing to exceptional circumstances beyond their control. The previous main residence must be sold before HMRC will consider whether the circumstances are exceptional.
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance he plans to issue to banks for companies wanting to apply for an extension to the Bounce Back Loan Scheme which need a higher level of finance than they required in March 2020.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government launched the Bounce Back Loan Scheme (BBLS) to ensure that the smallest businesses could access loans of up to £50,000 in a matter of just days. As of 15 November, the scheme had supported nearly 1.4 million businesses with facilities totaling over £42 billion.
On 2 November, the Government adjusted the BBLS rules to allow those businesses who have borrowed less than their maximum (i.e. the lower of £50,000 or 25% of their turnover) to top-up their existing loan to this maximum. Businesses will be able to make use of this option once. We understand that some businesses did not anticipate the disruption to their business from the pandemic would go on for this long. This change will ensure that they are able to benefit from the loan scheme as intended. Those businesses that require finance of over £50,000 should discuss alternative options with their lenders, including the possibility of refinancing into a loan under the Coronavirus Business Interruption Loan Scheme.
The Government has also announced the extension of the application deadline for all Covid-19 business loan schemes, including BBLS to 31 January 2021. This extension ensures that businesses have more time to make loan applications, supporting them through the pandemic.
Asked by: Kim Johnson (Labour - Liverpool, Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of providing financial assistance to (a) freelancers, (b) small company directors, and (c) people who mix self-employment with employment who have been ineligible for financial support since the start of the covid-19 outbreak.
Answered by Jesse Norman
I refer the hon. Member to the answer given to Question 110191 on 05 November.