Protection of Jobs and Businesses
Margaret Ferrier Excerpts(3 years, 8 months ago)
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Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
I am grateful for the opportunity to speak in this timely debate, which is of critical importance to my constituents. Out of the four constituencies that represent South Lanarkshire in this House, my constituency has the highest number of people receiving support for their incomes during the pandemic. The most recent figures, from July, show that 15,800 constituents were placed on the furlough scheme, with 3,200 constituents on the self-employed income support scheme. To put that into context, the total number of people on those schemes is just shy of a quarter of the total electorate in my constituency.
There can be no doubt from those figures that the economic effects of covid-19 are going to be felt for some time to come. It is with that understanding that we now face an incredibly stark choice about what to do next. It is my fundamental view that the Chancellor is moving far too quickly to wind down those schemes. There are sectors of the economy that are clearly not yet ready to reopen or expect a longer time to recovery, because coronavirus mitigations will be with us for many months to come.
One example of an industry that faces a deeply uncertain future without furlough is the events industry, which employs many of my constituents and supports our thriving cultural scene. My constituent Anne Porter, who owns a small production company that has been running in Burnside since 1989, told me that she has relied on furlough to keep the company going. However, with many major live events cancelled or postponed until next year and the furlough scheme winding down, many businesses like Anne’s are now facing closure across my constituency.
My constituents whose livelihoods rely on productions and events have told me that continuing support is essential for those sectors to recover. Many performers see the end of furlough as an enormous setback to what will often be the first tentative steps into their career. Ending furlough too early will lead many to conclude that the so-called “broad economic shoulders” of the UK are being put to work creating cliff edges, just at the moment when many people will be feeling economically vulnerable. For some it will be the first time in their lives that they have experienced this kind of insecurity. They have paid their taxes, followed the rules and done all the right things, and the UK Government are now repaying them with worry and uncertainty as the scheme winds down and the threat of redundancy looms large.
In conclusion, I do not want to have to beg another Government to do the right thing and extend the furlough and self-employed income support schemes. I do not want to hear more stories from ExcludedUK of people who are falling through every gap in the support schemes and been left with nothing, not even the hope of one-off support that might help them get back on their feet. I want the Government to start listening and to keep this lifeline support going. If they will not do that, it is time that we have the choice to support people and businesses through the powers of an independent Scotland.
Economic Update
Margaret Ferrier Excerpts(3 years, 10 months ago)
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Rishi Sunak
I wholeheartedly agree with my right hon. Friend. He is absolutely right: these interventions are specific to the moment that we face now. They provide support for young people at this moment of acute crisis. In the long term, only a dynamic market economy can provide sustainable, long-term employment for young people and beyond. In the medium term, once we get through this crisis, we must return our public finances to a sustainable place.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
The community access to cash scheme recently announced at Cambuslang in my constituency is going to become one of the pilot areas, bringing back much needed payment facilities to our community, which has lost several bank branches. The Chancellor has promised legislation to improve access to cash, which is needed urgently in the light of the economic downturn caused by the coronavirus. When will he bring forward that vital legislation to protect cash use, support small business and boost the recovery of our high streets?
Rishi Sunak
The hon. Member makes a good and fair point about the importance of cash, particularly in our rural communities. My hon. Friend the Economic Secretary is very much on top of this. He is conducting roundtables with the industry in the coming weeks, and we will bring forward legislation, as we have committed to do.
Oral Answers to Questions
Margaret Ferrier Excerpts(3 years, 10 months ago)
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Dave Doogan (Angus) (SNP)
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Chancellor of the Exchequer (Rishi Sunak)
The Government have taken unprecedented steps to keep as many people as possible in their existing jobs, support viable businesses to stay afloat and protect the incomes of the most vulnerable. We are now carefully and safely reopening our economy.
Rishi Sunak
I have said previously that, although we have not been able to help everyone in exactly the way that they would have liked, I am confident that the breadth and scale of the interventions we have provided ensures that everyone is able to access some support. We have also strengthened our security net, with welfare through universal credit, among other things, and our self-employment scheme remains one of the most comprehensive and generous anywhere in the world.
Margaret Ferrier [V]
The economic impact of coronavirus has not been distributed evenly across the UK economy, yet the Scottish Government have extremely limited borrowing powers to stimulate demand and aid recovery in key sectors. A one-size-fits-all approach should no longer be the norm. Will the Chancellor bring forward the review of the fiscal framework, lift the caps on borrowing and give the Scottish Government the tools that they need to invest in Scotland’s future?
Rishi Sunak
My right hon. Friend the Chief Secretary to the Treasury is in constant dialogue with his counterpart, the Finance Minister in Scotland, on these issues, but the people of Scotland are able to benefit from the strong measures that we put in place for the entire United Kingdom. Whether it be our loan schemes or, indeed, our furlough scheme, everyone in every part of this country is able to benefit.
Rishi Sunak
My hon. Friend is absolutely right: young people are more likely than not to work in affected sectors and more likely than others to be furloughed, and we know from all the evidence that the impact of scarring on young people is very significant, which is why they remain uppermost in my mind. I give my hon. Friend the reassurance that they will be prioritised as we think about our recovery and our labour-market interventions.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
The Financial Secretary to the Treasury (Jesse Norman)
As the hon. Lady will know, the Treasury is in constant communication with the FCA on these and other issues. If she would like to bring the specific details to my attention, I will make sure that they are examined by Ministers.
Future Relationship with the EU
Margaret Ferrier Excerpts(3 years, 11 months ago)
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Penny Mordaunt
I think that behind the political bluster there is good faith, because not only are we starting out from similar positions, as my hon. Friend points out, but a good deal is in our mutual interests. That is why I have always remained optimistic about the outcome of this process. [Interruption.] Because the EU needs to recognise us a sovereign equal, and I hope that it does.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
World trade is forecast to decline by up to a third in 2020 due to the coronavirus pandemic, and that could encourage a move to more protectionist trade policies globally. Given that context, why does the Minister think it is a good idea to rush through major changes to the UK’s trading relationship with the EU, when businesses want more time to recover from the economic shock of coronavirus and avoid a no-deal scenario?
Covid-19
Margaret Ferrier Excerpts(3 years, 12 months ago)
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Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
I express my condolences to those who have lost their lives to covid-19. It is easy to forget amid the daily statistical reports that behind each number is a person who was loved by their family and friends and was an irreplaceable part of the local community. I also take the opportunity to pay tribute to the efforts of key workers in my constituency, who are helping to save lives and keep essential services running. From nurses to delivery drivers, they are all heroes in my eyes, and I am continually impressed by the way that they have adapted and continue to adapt in challenging circumstances.
In times of national crisis, our choice of words matters. We need to provide clear and consistent information to the public about what we are asking them to do and why. It is regrettable that the “stay alert” slogan for England was briefed to the media before MPs and that no consultation with the devolved Governments took place beforehand. On a basic level, the “stay alert” message can be interpreted as an end to lockdown and as throwing caution to the wind, which could have disastrous consequences for public health. The threat of a second wave remains very real, and the infection rate could move upwards rapidly again. We only need to look at Germany to observe the consequences of lifting lockdown too soon. Now is not the time for caveat and nuance in tackling coronavirus. We need a clear and unambiguous approach like that taken by the First Ministers of Scotland, Wales and Northern Ireland to reinforce the clear message to stay at home.
Lockdown has not been an easy decision to implement, and it does not come without cost. It has taken its toll on our constituents, and we are all anxious for their wellbeing. We know that businesses are struggling right now, and we want to support them to survive in the months ahead and rebuild over the longer term. From hairdressers to shows and everything in between, they need stability now in order to prepare for the post-coronavirus economy.
Just as with the lockdown measures, we must not rush into winding down the job retention schemes that give businesses security now. Indeed, we must look at options for extending those schemes for sectors that may struggle to reopen with social distancing. No country is going to avoid the economic impact of coronavirus, but the question comes down to whether recovery puts the wellbeing of society first or tries to carry on as if nothing has happened. We risk creating another lost generation if we do not learn from the innovations that have been born out of necessity during this crisis.
Flexibility in policy making will be crucial in adapting to the challenges of our post-coronavirus future. That is as true when approaching the question of easing lockdown measures as it is with many other aspects of Government policy. A unitary, one-size-fits-all approach has not always been the most desirable approach to managing the crisis. To take just one example, France has designed its exit strategy on the basis of levels of infection. The areas of highest infection continue with more restrictions, while areas of low infection see more relaxed measures.
To conclude, the reality is that we will be living with coronavirus for some time to come. We owe it to our constituents to be honest about the challenges that that will bring and how we can help them to navigate the new normal. Judging by the messy and unclear manner in which the UK Government changed their coronavirus advice, I am unconvinced that they will bring forward the kind of innovative thinking we need to build a sustainable, long-term recovery from coronavirus across these islands.
The Economy
Margaret Ferrier Excerpts(4 years ago)
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Rishi Sunak
Representing a rural constituency myself, I understand very well the comments that my right hon. Friend has made. I am in constant dialogue with the Secretary of State for Environment, Food and Rural Affairs on these issues. We are making sure that all the economic interventions that we have put in place can benefit not just the agriculture sector but as many sectors as possible.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
Fairs and shows are on the back burner for the summer. That means that the livelihoods of show families in my constituency are on the line. They purchased rides and equipment through asset finance companies and they need to cover the repayment costs, which have not stopped amid this pandemic. What assurances can the Chancellor give me that the coronavirus business interruption loan scheme is offering the funding needed to support travelling funfairs?
Rishi Sunak
If I understood the hon. Lady’s question correctly, I can assure her that the coronavirus business interruption loans apply to meeting asset-related costs already, so it is perfectly possible to use that scheme for a finance arrangement like that. But if that was not her specific question, I would be happy to answer in writing.