Rishi Sunak
Main Page: Rishi Sunak (Conservative - Richmond (Yorks))Department Debates - View all Rishi Sunak's debates with the HM Treasury
(3 years, 3 months ago)
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Mary Robinson (Cheadle) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
The Government recognise the significant impact of coronavirus on businesses across every region and nation of the United Kingdom, and that is why we have put in place an unprecedented series of measures to provide support, whether that is through the coronavirus job retention scheme, tax cuts, tax deferrals, Government-backed loans or cash grants.
Lucy Powell [V]
Business support that was originally designed for three months is now wholly inadequate for 12 or 18 months. Business debts and deferrals are mounting and now have to start being repaid, and the holidays are coming to an end, all at one big danger point in April. Cash grants are worth less and many still do not qualify for them. While the Chancellor might pat himself on the back, reports out this week show that nearly 250,000 businesses are likely to go bust this year, taking many jobs with them. Does he recognise that he cannot pull the plug all in one go in April, given that many businesses will not even have reopened at that point, and that with the effects of the vaccine around the corner, it makes no economic sense to allow businesses to go bust at this critical point, having supported them for so long?
Rishi Sunak
No one, least of all me, is patting themselves on the back while hundreds of thousands of people are losing their jobs and many businesses are seeing extreme dislocation as a result of what is happening in our economy. I have put in place a series of measures, but I have always said that we cannot protect or save every job and every business. The hon. Lady makes a fair point, which is why we have said that we will review all our economic measures to support people through coronavirus at the upcoming Budget, in the first week of March.
Joy Morrissey [V]
Many female business owners have found themselves working full-time jobs at home while bearing full-time responsibility for childcare and home schooling, all at the same time. May I thank my right hon. Friend for all the steps he is taking to alleviate the difficulties experienced by mothers who just want to work and contribute to the economy with their children safely back in school?
Rishi Sunak
My hon. Friend is absolutely right, and we owe mums everywhere an enormous debt of thanks for doing the enormously difficult job of juggling childcare and work at this tricky time. I know she will join me in being happy that early years settings have been open for a while, but she is right to say that the only way to sustainably solve this challenge is safely to reopen our schools as quickly as we can.
Caroline Ansell [V]
I have long believed that there was a compelling case for reducing VAT for the hospitality sector, and the pandemic-inspired cut helped to save the season between lockdowns. May I ask that my right hon. Friend, when he is looking at his Budget, considers making the cut permanent, to power the recovery across the UK, including in my destination town of Eastbourne, where one in four jobs depends on tourism?
Rishi Sunak
My hon. Friend is rightly a champion for her local tourism and hospitality businesses, and she is not alone; across the country, hundreds of thousands of these businesses employ 2 million people. Those businesses are particularly vital in constituencies such as hers, which is why we reduced the rate of VAT—it runs all the way through to the end of March. She will know that we have an upcoming Budget, where we plan to review all our measures of support.
Jake Berry [V]
As you know, Mr Speaker, many of our manufacturers here in Lancashire have worked through the pandemic. Will my right hon. Friend congratulate businesses such as J & J Ormerod plc, James Killelea and Co Ltd, WEC Group and Perspex, who not only have worked through the pandemic, but show that high-value manufacturing and the real economy need to be things the Chancellor fosters and supports in his forthcoming Budget?
Rishi Sunak
I am very happy to join my right hon. Friend in congratulating the businesses he mentioned. We know that many manufacturers, especially those in his area, have worked very hard, particularly with regard to ventilators and personal protective equipment at a time of this country’s need. He is right to say that that should play a part in our recovery. One initiative I would point to, which I believe will be in and around his area, is the Made Smarter partnership between Government and high-value manufacturing, which seeks to foster innovation, digital adoption and the latest and greatest management processes. It seems to be working very well and I look forward to learning more about that initiative.
Mary Robinson [V]
Cheadle businesses that faced fines for failing to submit self-assessment returns by the end of this month will be relieved by yesterday’s announcement of an extension until the end of February, as that will remove a great deal of worry and anxiety from business owners who are already under great pressure. With the original deadline only a week away, what steps will the Department take to ensure that all businesses are aware of these changes?
Rishi Sunak
As an accountant herself, my hon. Friend knows all too well the fantastic job that these people are doing, under enormous strain, at this current time. I know that, as she said, she warmly welcomes the announcement yesterday by Her Majesty’s Revenue and Customs to waive penalties until the end of February for late filers. She is right to say that we must make sure that everyone is aware of this, and we are doing everything we can, on all our channels of communication, to get this news to businesses. I ask other colleagues across this House to do exactly the same in their constituencies.
Mel Stride (Central Devon) (Con) [V]
There is a looming bloodbath for many businesses at the end of March, when the moratorium on commercial landlords taking action against tenants in arrears comes to an end. Does my right hon. Friend recognise that acute danger? What action might he consider taking to avoid it?
Rishi Sunak
My right hon. Friend knows that the Secretary of State for Housing, Communities and Local Government is engaged with that issue and has worked with the industry to put in place various codes of practice to encourage good and constructive dialogue between landlords and tenants throughout a difficult situation. There are promising signs that that is happening.
Stephen Kinnock (Aberavon) (Lab)
Andrew Griffith (Arundel and South Downs) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
The Government are clear that we will drive growth by investing in infrastructure, innovation and skills. In doing so, we will build back better and greener as we recover from the economic impact of coronavirus, starting, of course, with the Prime Minister’s green 10-point plan.
Andrew Griffith [V]
I thank my right hon. Friend for his answer. Does he agree that the UK is exceptionally well positioned to prosper from the initiatives he referred to, and that this is another example of the Government’s unleashing Britain’s potential?
Rishi Sunak
My hon. Friend is absolutely right—our 10-point plan can create hundreds of thousands of jobs up and down the country. He is also right that we can lead the world in this journey. We have been one of the fastest countries to decarbonise over the past few years and are one of the leading countries not only in phasing out coal and internal combustion engine vehicles but in offshore wind and carbon capture and storage. Where Britain goes, hopefully the world can follow.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
This year, the UK Government have a chance to show global leadership on the climate emergency
as the host of the UN climate change conference in Glasgow. Green gilts will be a vital part of the transition to a clean economy. Last year, the Chancellor promised to launch the first ones this year. Will he tell us when and why not yet?
Rishi Sunak
We are doing the technical work required to make sure that the launch of our green gilts is successful. I hope to provide an update at the Budget, but the hon. Lady can rest assured that we are working very hard at it. As I said, this will be the first step in building out a green curve. By doing that and making sure that the curve has fidelity in terms of confidence in where the money is going, we can unlock investment for the private sector across the economy. I know that she will join me in welcoming that progress.
Alex Norris (Nottingham North) (Lab/Co-op)
Paul Blomfield (Sheffield Central) (Lab)
The Chancellor of the Exchequer (Rishi Sunak)
We have secured an unprecedented free trade agreement with the European Union—the first free trade agreement that the EU has ever reached based on zero tariffs and zero quotas. Across sectors and regions, it is a good deal that will protect jobs and investment.
Paul Blomfield [V]
The assessment conducted by the Treasury in 2018 concluded that there would be significant regional variation in the impact of any Brexit deal. We are certainly seeing that, with fishing fleets grounded, manufacturers hit with extra costs, and the Department for International Trade apparently advising businesses to move parts of their operation to the EU to avoid problems. It is clear that there will be a significant regional impact. Does the Chancellor agree that he needs to redress that regional damage from the Brexit deal? Alternatively, does he agree with the new Business Secretary’s comments in “Britannia Unchained” that regional division is an “irrelevant” debate?
Rishi Sunak
No one can doubt the Government’s commitment to uniting and levelling up across our United Kingdom, with an unprecedented infrastructure investment programme. Notably in the spending review, we announced something called the levelling-up fund, which will fund the infrastructure of everyday life in communities up and down the country, on top of our once-in-a-generation increase in infrastructure investment in road, rail and broadband that will benefit equally all parts of our United Kingdom.
Tracy Brabin (Batley and Spen) (Lab/Co-op)
The Chancellor of the Exchequer (Rishi Sunak)
Throughout this crisis, our overriding economic priority has been to support people’s jobs and businesses through a range of measures worth more than £280 billion, including the furlough scheme, tax cuts, tax deferrals, loans and grants. There will be a Budget on 3 March, when we will set out the next steps in our economic response to coronavirus.
Tracy Brabin [V]
Last week the Chancellor received a detailed and costed policy proposal for a targeted income grant scheme, written by Rebecca Seeley Harris and supported by the gaps in support all-party parliamentary group. That scheme would be a vital first step in giving meaningful financial support to many of the millions who have been locked out of the current schemes and who are desperate, after nearly a year of the covid pandemic. Can the Chancellor tell us today whether he plans to progress with that proposal, or does he have another scheme in mind for the millions in need of support?
Rishi Sunak
I am happy to tell the hon. Lady that my right hon. Friend the Financial Secretary to the Treasury met the authors of the report back in December and is considering it alongside all the other submissions that we receive at the Treasury.
Mr Marcus Fysh (Yeovil) (Con) [V]
Rishi Sunak
My hon. Friend is right about needing the private sector to drive growth and create jobs. I am pleased to tell him that the Prime Minister and I chaired the first meeting of the Build Back Better Business Council, where we outlined our plans to invest in infrastructure, innovation and skills alongside businesses. We have also established a new Office for Investment, led by Lord Grimstone, which is charged with securing high-value investment opportunities, and I look forward to hearing from him ideas that we can productively take forward.
Anneliese Dodds (Oxford East) (Lab/Co-op) [V]
In recent days, the Treasury has been at loggerheads with the Department for Work and Pensions, insisting on taking £20 a week from the pockets of 6 million families. It has also been at loggerheads with the Scientific Advisory Group for Emergencies, by claiming that financial hardship is not inhibiting self-isolation. Why is the Treasury putting our economic and health recovery at risk in this way?
Rishi Sunak
The hon. Lady should not believe everything she reads in the newspapers. The Treasury and this Government have put in place a comprehensive and generous set of support to help people get through this crisis, and the results show that we have protected those on the lowest incomes the most.
Anneliese Dodds
I was actually following the words of the Secretary of State for Work and Pensions and of SAGE, but I appreciate the Chancellor’s response. The kickstart scheme was much heralded, but yesterday we learned that it appears to be missing out around 99 of every 100 young jobseekers. What does the Chancellor say to them today?
Rishi Sunak
I am not entirely sure I know the figures that the hon. Lady is referring to. What I can say is that, since this scheme was announced at the beginning of July and opened for applications in September, it has created over 120,000 jobs for young people. That is, I think, an extraordinary achievement. I pay tribute to the team at the DWP for doing that. I am grateful to the thousands of businesses that are taking part in the scheme. They are working with us to provide hope and opportunity to a generation of young people so that they are not scarred by coronavirus, but can look forward to a brighter future.
Jason McCartney (Colne Valley) (Con) [V]
Rishi Sunak
My hon. Friend will I hope appreciate that the various things he just mentioned total about, I think, £20 billion or £30 billion, so he will understand it is reasonable that we consider all these things in the round at Budget, when we will set out the next stage in our economic response to coronavirus.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
The Office for Budget Responsibility estimates that HMRC will forgo around £800 million in customs income and VAT over the next year. Some is deferred, but much is forgone. Will the Chancellor tell us what he is doing to make sure that that number shrinks and that revenue comes in at a time when the Exchequer needs it really very badly?
Rishi Sunak
I will have to go and check the exact figures, if the hon. Lady will forgive me for not knowing the specific paragraph that she refers to. In general HMRC is providing easements over the next few months as we transition to a new set of trading relationships, but she can rest assured that we are always mindful of the impact on revenue and intend fully—very much so—to have a robust set of mechanisms in place. As she will know, there is a phased response for getting to that point between now and July, and hopefully we can work with her to make sure that that path is as seamless as possible.
Chris Grayling (Epsom and Ewell) (Con) [V]
Christian Matheson (City of Chester) (Lab)
Rishi Sunak
It is absolutely right that businesses get the funds as quickly as possible. What I would say is that central Government have disbursed that funding to local councils across the country, so it is actually for businesses to take up with their local authority why they have not received the money. There are two sets of grants: there are of course our monthly grants, which have been going for a while now, and the one-off payments of up to £9,000 that we announced earlier this year. But the hon. Gentleman is right to urge urgency. I know my colleagues in the Business Department are doing exactly that with local councils, but ultimately the responsibility will lie with individual councils.
Matt Vickers (Stockton South) (Con)
Patricia Gibson (North Ayrshire and Arran) (SNP)
Rishi Sunak
I am happy to look at the specific question the hon. Lady raises, but she will know that in the last Budget we introduced a manifesto commitment to bring in neonatal leave, which was warmly welcomed and many had campaigned for, and I know will make a difference to families up and down the country.
Mark Pawsey (Rugby) (Con) [V]
Mr Virendra Sharma (Ealing, Southall) (Lab) [V]
Rishi Sunak
The hon. Gentleman can write to me with the specific issue he has with the guidance, but in general the grants have been functioning, I think, very well and local authorities are getting them out to businesses. They also have access to discretionary funding. As the name suggests, although there are broad guidelines, ultimately that funding is to be at the discretion of individual local authorities.