Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with representatives of the financial sector on allowing non-banks to access direct funding for the Bounce Back Loan Scheme, as is available to high street banks.
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.
The British Business Bank has so far accredited 29 lenders for BBLS, including several challenger banks and non-bank lenders.
The Treasury recognises the vital role that non-banks and challenger banks play in the provision of credit to SMEs. It is grateful for the way the sector has responded to the current crisis, and remains committed to promoting competition, and widening the funding options available to UK businesses.
The Government does not provide funding to lenders who are participating in the government loan schemes; lenders must source their own funding, as they do for standard business lending.
We have made changes to allow the transfer and assignment of the Government guarantee for all government-guaranteed loan schemes loans, which is something that NBLs have requested, to support their ability to access funding. We will continue to work with non-bank lenders to support their participation in the loan schemes.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the VAT reduction offered to hospitality services until March 2021 to (a) hairdressers, (b) beauty services and (c) other close contact services.
Answered by Jesse Norman
The temporary reduced rate of VAT was introduced on 15 July in order to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and will run until 31 March 2021. This relief comes at a significant cost to the Exchequer, and there are currently no plans to extend the scope to include other sectors.
The Government has announced a significant package of support to help businesses through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the temporary 5 per cent reduced rate of VAT for hospitality, hotel and holiday accommodation businesses for the 2021-22 financial year.
Answered by Jesse Norman
The Government initially cut the rate of VAT applied to hospitality, accommodation and attractions, from 20 per cent to 5 per cent, for a period of six months to 12 January 2021.
The Government extended this relief in September 2020, and it will now end on 31 March 2021. The reduced rate aims to support the cash flow and viability of over 150,000 businesses in the affected sectors and will help protect 2.4 million jobs.
The Government keeps all taxes under review.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend business rates relief for businesses in the retail, hospitality and leisure sectors in England for the 2021-22 financial year.
Answered by Jesse Norman
The Government has taken the unprecedented step of providing almost £10 billion in business rates relief this year. All business rates reliefs in England will be considered through the business rates review.Business rates are devolved in Scotland and are a matter for the Scottish Government.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of continuing finance for the Union Learning Fund to provide support for workers affected by the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
My officials continually consider assessments of the value for money of public spending.
The government has provided unprecedented support for jobs, and remains committed to investing in adult skills and retraining. The Plan for Jobs provided funding for skills and training to help workers affected by the Covid-19 outbreak, and the forthcoming Spending Review will confirm details of the National Skills Fund to help more people learn new skills and prepare for the jobs of the future.