Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he is having with representatives from the insurance industry to ensure that insurers pay claims from tourism and hospitality businesses for business interruption in the event of a pandemic.
Answered by John Glen
The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation. The Government is also working closely with the Financial Conduct Authority (FCA) to ensure that the rules are being upheld during this crisis.
For those businesses which have an appropriate policy that covers government ordered closure and unspecified notifiable diseases, the Government’s social distancing instructions are sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met.
The FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. In addition, the FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them.
Furthermore, on 15 April, FCA sent a letter to the insurance industry, setting out the FCA's expectation of firms regarding their handling of business interruption insurance claims, urging insurers to settle claims quickly in cases where there was a clear obligation to pay the claim in full or in part.
In addition, on 1 May, the FCA published a statement setting out their intention to seek legal clarity on the handling of business interruption insurance claims, in order to resolve any doubt for businesses facing uncertainty on their claims. In their statement the FCA also noted that insurers should look at how they can help consumers who are experiencing financial distress as a result of COVID-19.
However, most businesses have not purchased insurance that covers losses from COVID-19. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers.
The Government recognises that businesses who do not have appropriate insurance cover will require support from elsewhere. As such, businesses should explore the full package of support set out by the Chancellor, which includes measures such as business rates holidays, the Coronavirus Business Interruption Loan Scheme, and wage support.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of a business rates freeze for small retail, tourism and leisure commercial units which are currently unoccupied.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government maintains empty property relief to support property owners between the reoccupation of vacated premises. Under empty property relief, owners of properties do not normally have to pay business rates on newly vacated buildings for three months. Certain properties are also eligible for extended empty property relief.
Properties which have closed temporarily due to the Government’s advice on COVID-19 should be treated as occupied for the purposes of the business rates holiday for retail, hospitality and leisure properties.
A range of further measures to support all businesses, including those not eligible for the business rates holiday, has also been made available.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to provide financial support to casual workers and freelancers in the creative, entertainment, event and performance industries during the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has announced unprecedented support for businesses and workers to protect them against the current economic emergency. The Government has made significant changes to the operation of Statutory Sick Pay, Universal Credit, and Employment and Support Allowance, in order that people have quicker and more generous access to a support system.
For casual workers and freelancers, the Self-Employment Income Support Scheme (SEISS) will provide grants to those who are self-employed, or members of partnerships, worth 80% of their trading profits/partnership trading profits, up to a maximum of £2,500 per month. The value of the grant is based on a three-year average of trading/partnership trading profits, from the tax years 2016-17 to 2018-19. SEISS is available to those who generate majority of their income from self -employment and who earn less than £50,000. Some 95% of people who receive the majority of their income from self-employment could benefit from this scheme.
To support those on low incomes, the Government has announced a package of temporary welfare measures, including:
Details of the range of support for individuals affected by COVID-19 is available at: https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19/support-for-those-affected-by-covid-19.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support football league clubs facing financial difficulties as a result of the outbreak of covid-19 through (a) improving their access to Government-supported loans and (b) encouraging the Football Association and Premier League clubs to provide short-term financial assistance.
Answered by Steve Barclay
The government has announced a significant package of financial support for businesses and employees, including the sport sector. This includes the Coronavirus Business Interruption Loan Scheme, the Coronavirus Job Retention Scheme, the Self-employment Income Support Scheme amongst other measures to support businesses and employees during this period. Further details of this package are available at: www.businesssupport.gov.ukAsked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to provide financial support to third sector organisations in financial difficulties as a result of the covid-19 outbreak.
Answered by Steve Barclay
Charities, social enterprises and other third sector organisations will benefit from the new Coronavirus Job Retention Scheme. The government has announced an unprecedented package of financial support that will also support charities and social enterprises, including small business grants. Many charities are already eligible for 80% charitable rate relief, they will benefit from the new enhanced retail rate relief at 100%. Further detail of government support is available at: www.businesssupport.gov.uk
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to provide financial assistance to third sector organisations that experience an increase in demand following the closure of community-based services as a result of the covid-19 outbreak.
Answered by Steve Barclay
Charities, social enterprises and other third sector organisations will benefit from the new Coronavirus Job Retention Scheme. The government has announced an unprecedented package of financial support that will also support charities and social enterprises, including small business grants. Many charities are already eligible for 80% charitable rate relief, they will benefit from the new enhanced retail rate relief at 100%. Further detail of government support is available at: www.businesssupport.gov.uk
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking with his international counterparts to ensure that internet-based businesses pay an adequate level of tax in the UK.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Ensuring that digital businesses pay their fair share of tax in the UK is a priority for the Government.
The Government is actively working on a multilateral solution to ensure that digital businesses pay an appropriate level of tax in the countries in which they operate.
Pending that solution, the Government is introducing the digital services tax from April 2020; a 2% tax on the UK revenues of social media platforms, online marketplaces and search engines.