Tax Credits, Child Benefit and Guardian's Allowance

Steve Barclay Excerpts

Wednesday 25th November 2020 Written Statements

[The Chief Secretary to the Treasury (Steve Barclay)]

The Government will bring forward regulations that will increase most tax credits rates and thresholds and will increase the Child Benefit and Guardian’s Allowance rates in line with the general rise in prices as measured by the September 2020 Consumer Price Index (CPI). CPI has been the default inflation measure for the Government’s statutory annual review of benefits since 2011.



The annual uprating of benefits will take place for tax credits from the start of the new tax year and for Child Benefit and Guardian’s Allowance in the first full week of the 2021-22 tax year. In 2021, this will be 6 April for tax credits and 12 April for Child Benefit and Guardian’s Allowance.



The Government are committed to supporting those who need it most. The annual up-rating process takes into account a variety of measures:



The majority of elements and thresholds in Working Tax Credit and Child Tax Credit will be increased by September’s CPI figure (0.5%) from April 2021. In line with established practice and the Office for Budget Responsibility’s expectations in their welfare forecast, the maximum rate of the childcare element, the family element, the withdrawal rate and the income disregards will remain unchanged.

The 0.5% increase will be applied to the rate of the Working Tax Credit basic element announced by written ministerial statement on 4 November 2019 (£1,995). The statutory annual review of benefits is separate from the temporary £20 per week uplift to the Working Tax Credit basic element and the Universal Credit standard allowance, which was announced as a temporary measure in March 2020, and enacted for one year under different legislation in response to the public health emergency. As we have done throughout this crisis, we will continue to assess how best to support low-income families, which is why we will look at the economic and health context in the new year.

Child Benefit will be increased in line with CPI (0.5%) from April 2021.

As set out in legislation, Guardian’s Allowance will be uprated in line with prices, measured by CPI (0.5%).

The full list of proposed benefit and credit rates will be placed in the Libraries of the House in due course.

[HCWS599]

Levelling up the Economy: Freeport Bidding Process

Steve Barclay Excerpts

Monday 16th November 2020 Written Statements

[The Chief Secretary to the Treasury (Steve Barclay)]

On 16 November, the Government launched the bidding process for the allocation of freeports in England by publishing a bidding prospectus. The bidding period will close on 5 February 2021.

Leaving the EU creates new opportunities for the UK to strengthen the union and become a hub for international trade and investment. Revitalising our port regions through an ambitious freeport policy is a key component of realising this vision and unlocking the deep potential of all nations and regions of the UK.

The creation of freeports will be a cornerstone of the Government’s plan to level up opportunity across the country. Freeports will increase trade, create employment and attract investment in order to form innovative business clusters that benefit local areas. This in turn will help rejuvenate left-behind communities across the UK, by attracting new businesses, spreading jobs, investment and opportunity.

The bidding prospectus sets out how ports, businesses, local government and other local partners can come together to bid for freeport status.

At the centre of our new freeports policy is an ambitious new customs model which will improve upon both the UK’s existing customs facilitations and the freeports the UK previously had. Our freeports model also introduces a package of tax incentives for businesses to invest in freeports, and seed funding to develop key infrastructure to help level up some of our most deprived communities. We are introducing new measures to speed up planning processes to accelerate development in and around freeports and new initiatives to encourage innovators to test new ideas to drive additional economic growth and create jobs.

Freeports will be selected according to a fair, transparent and competitive bidding process, and will be expected to collaborate closely with key partners across the public and private sectors.

We want all the nations of the UK to share in the benefits of freeports. As such, we are working constructively and collaboratively with the devolved Administrations to seek to establish at least one freeport in each nation of the UK as soon as possible.

The “Freeports bidding prospectus” CP315 has been laid in Parliament. Copies are available in the Vote Office and Printed Paper Office, and also at: https://www.gov.uk/ government/publications/freeports-bidding-prospectus.

[HCWS579]

Lockdown: Economic Support

Steve Barclay Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

(Urgent Question): To ask the Chancellor of the Exchequer if he will make a statement on economic support available to individuals and businesses during and after the recently announced lockdown.

[The Chief Secretary to the Treasury (Steve Barclay)]

Yesterday, the Prime Minister set out why we are introducing new measures to tackle coronavirus.

[Mr Toby Perkins (Chesterfield) (Lab)]

He’s not the Chancellor.

[Mr Speaker]

Order. Toby, I do not need this all the way through. Please, I want to get on with this statement. I have granted the UQ, and I do not need Back Benchers chirping.

[Steve Barclay]

Thank you, Mr Speaker.

Yesterday, the Prime Minister set out why we are introducing new measures to tackle coronavirus. This decision is not one we would wish to take, but it responds to the soaring infection rate.

Just as we have a responsibility to protect lives, we must also safeguard livelihoods. That is why the Government have provided unprecedented levels of financial support throughout this crisis, in a package described by the International Monetary Fund as

“one of the best examples of co-ordinated action globally”.

This package includes an extension to the coronavirus job retention scheme, where employees will receive 80% of their usual salary up to a maximum of £2,500, while employers need only pay national insurance and pension contributions. We will provide more support to the self-employed. We are increasing the self-employed income support scheme grant from 40% to 80% in November. This boosts the total grant from 40% to 55% of trading profits from November to January, up to a total of £5,160, aligning it with the furlough scheme. In addition, homeowners hit by the pandemic can continue to claim a six-month mortgage holiday, and businesses that are required to close can receive non-repayable grants worth up to £3,000 a month. In total, these grants are worth over £1 billion a month.

We are also planning to extend the existing business loan schemes and the future fund to the end of January, as well as making it possible to top up bounce back loans. Local authorities will also receive £1.1 billion to support businesses more broadly, and up to £500 million to support the local public health message through the contain outbreak management fund. We will also uplift the Barnett guarantee this week to give Scotland, Wales and Northern Ireland further certainty over their up-front funding.

These measures build on the Government’s economic package that now totals over £200 billion. They will provide security to millions of people while giving businesses the flexibility to adapt and plan, and they underline our unrelenting focus on listening and responding to the damaging path of this virus.

[Anneliese Dodds]

Thank you very much for granting this urgent question, Mr Speaker. The circuit breaker that Labour proposed three weeks ago would have been shorter and more effective, so less damaging to jobs and businesses, than the Government’s last-minute, but lengthy, lockdown. The cost of that Conservative delay will be counted in lives and livelihoods, so was it the Chancellor who vetoed the circuit breaker? Why did he tell the Welsh Government that it was impossible to extend furlough, and why did he dismiss those in the north who said his plans would lead to hardship?

I heard from one restaurant about the strain caused by this panicked, last-minute approach. As rumours of a lockdown circulated on Friday, staff wiped away tears before putting on a brave face to customers. They did not know whether, in the following week, they would be working as normal, facing redundancy, being paid at 67% of their normal wages or being paid at 73%.

Similarly, the self-employed endured intransigence and then rumour, before a last-minute announcement yesterday that still leaves many people with nothing. Businesses need to know what support they will receive if their area faces further restrictions on the other side of lockdown, but the Prime Minister said yesterday that they will not find out until just before those restrictions are imposed.

How can any business plan on that basis? How can people cope with that level of insecurity? The lack of any plan for economic support is making a very, very difficult situation even worse. Will the Chancellor and his Ministers finally get a grip, and set out the plan for the next six months? Will they indicate how the different scenarios facing us will be dealt with, not retrospectively, or at the last minute, or once businesses have gone bust and jobs have already been lost, but in advance? Will they set out a plan for support if the lockdown is extended, or if some regions or devolved nations remain under restrictions for longer? Finally, will I continue having to drag Government Ministers here week after week as this Government stumble from one crisis to the next?

[Steve Barclay]

The hon. Lady started by saying that the circuit breaker would have been shorter, but those on her Front Bench have repeatedly said, when interviewed, that a circuit breaker would have to be repeated.

The deputy chief medical officer was clear that an earlier national lockdown would not have been appropriate, because at the time, the path of the virus was very slow in certain areas, such as the south-west, so the economic damage would have been disproportionate. I might have expected to hear the hon. Lady’s argument from some Members of the House, but it is surprising that the economic spokesperson for the Opposition was willing to see that economic damage. [Interruption.] She chunters, but I am simply quoting the deputy chief medical officer, whose advice was that a lockdown would have been the wrong action to take at that time. I am pointing to economic damage, which she seems to see as trivial and something to be disregarded.

The hon. Lady then claimed that the Government had in some way dismissed certain parts of the United Kingdom. I gently point out that furlough was not ended; it continued to the end of October, and has now been extended. Furlough has continued in all parts of the United Kingdom without any gap in its provision.

The hon. Lady asks whether the Government have a plan in place. My right hon. Friend the Chancellor came to the House on 24 September to set out our winter plan for jobs. It included the kickstart scheme, which is up and running, and provides much-needed training to our constituents across the country. While setting out his winter plan, he said candidly that if the pathway of the virus changed, the Government would listen and adapt, and that is exactly the action that we have taken.

Finally, somewhat strangely, the hon. Lady said that she needs to “drag” Ministers to the Chamber to set out their approach. [Interruption.] She is repeating the point. Mr Speaker, I thought the Prime Minister was here yesterday to give a statement to the House. It is somewhat strange to say, the day after he did that, that Ministers have to be dragged to the Chamber to give updates on the position.

[Mr Speaker]

Order. I decide whether we have an urgent question, and I am sure that the Minister is not questioning my judgment on that.

[Steve Barclay]

Mr Speaker, I hope that you know me well enough to feel that I would never do that; I clarify that for the record in case any other impression was given. My point was that the diligence of Ministers in updating the House was demonstrated by the Prime Minister yesterday in his statement.

[Mr Speaker]

Order. We will leave it at this, but it is no good to have something played out through the press on Saturday and Sunday, so that on Monday everybody already knows about it, and it is no shock. That is why the right hon. Gentleman could not judge whether to have a UQ. We will leave it there.

[Steve Barclay]

We have a plan set out—the winter plan. We have always demonstrated that we will listen and adapt; that is what the Government are doing. They are setting out a comprehensive package of support to protect as many jobs and livelihoods as possible.

[Mr Speaker]

Let us enter Central Devon with the Chair of the Select Committee on the Treasury, Mel Stride.

[Mel Stride (Central Devon) (Con) [V]]

I broadly welcome the new measures that the Government have brought forward to support jobs and, in particular, the increase in support for the self-employed from 40% to 80% under the self-employment income support scheme arrangements. However, as my right hon. Friend will know, the Treasury Committee produced a report earlier this year in which we identified more than a million individuals—the self-employed in particular—who were missing out on support. Will he update the House on whether, under the new measures, any of those identified in the report will receive support where they were not before? If the answer is no, why is that the case?

[Steve Barclay]

My right hon. Friend is right to point to the fact that some were not covered. In fact, that has been an area of much debate within the House. He will understand that there is a distinction to draw between employees who, because their details had not been notified to HMRC at the cut-off point last time, were excluded, and those who because of the furlough extension will be included moving forward, so some of that population cohort are covered.

In respect of the self-employed cohort, my right hon. Friend will be aware that we have so far offered over £30 billion of support to the self-employed, which is generous by international standards. He knows, however, that, within that, there are different cohorts. There is the cohort relating to company directors, where the issue remains the same: what is dividend income and what is not. He will know that another part of that group is those earning above £50,000, and we made a decision to target support below that threshold. He will know that some people are self-employed but that is not the majority of their income—less than 50% is through their being self-employed—and that we targeted funding at those for whom self-employment was their main provision. So there are different cohorts within the excluded population, but those who were employed will be covered by the furlough extension.

[Alison Thewliss (Glasgow Central) (SNP)]

The UK Government continue to lurch around in absolute chaos, with a Prime Minister forced, due to the leak of his plans, to come on TV and, after hours of delay, squeezing in before “Strictly” to announce an English lockdown and the extension of furlough just before it was due to expire. We have been telling them for months that it would need to be extended. While I welcome the action, this late extension will be of absolutely no comfort to those who have already lost their jobs due to the Government’s incompetence, or to the businesses in my constituency who have done their utmost to support their staff and now have no idea where they stand. It is no comfort either to those who continue to be ignored. Those excluded from the initial support schemes face a bleak winter ahead. Will the Chief Secretary ensure that they do not lose out again? There are still many sectors of the economy that cannot go back to normal.

The overwhelming sense, for many of us, is that this is not a Union of equals. When Wales, Northern Ireland, Scotland and parts of the north-east of England asked for furlough to be extended this autumn, they were told that the Chancellor’s magic money tree had lost all its leaves. Yet, when the Prime Minister decided that England needed to go into urgent lockdown, it turned out that the magic money tree was in fact an evergreen.

Yesterday, the Prime Minister gamed his answers on furlough in the House in a pathetic and transparent attempt to make the hon. Member for Moray (Douglas Ross) look good, but he was contradicted on Sky News this morning by the Secretary of State for Housing, Communities and Local Government who said it would be up to the Chancellor to decide if furlough would be available to the devolved nations after 2 December. In an act of further disrespect, the Chancellor is not even here to answer this question. Will the Chief Secretary therefore be clear and honest about whether the Treasury will make furlough and SEISS available at 80% to any part of these islands that requires that after 2 December?

[Steve Barclay]

The hon. Lady started by saying that we were disrespecting parts of the United Kingdom. I was on a call yesterday with the Chancellor of the Duchy of Lancaster, the First Secretary of State and the Home Secretary and others, with the First Minister of Scotland, the First Minister of Wales and the Deputy First Minister of Northern Ireland as part of our regular dialogue. That continues across the United Kingdom and, indeed, at official level. The chief medical officers liaise extremely closely together.

Secondly, the hon. Lady’s various grievances are somewhat both surprising and disappointing when the Government have listened and introduced, for the first time, an up-front Barnett guarantee that has provided the Scottish Government with £7.2 billion of funding at an earlier point than would traditionally be the case, recognising the volatility of the situation with covid. It would be good for her to recognise that that is unprecedented and different. Again, on the call yesterday, I signalled to the First Minister that this week we would update with a further uplift—following our unprecedented action—to give more clarity on the Barnett guarantee and the consequentials flowing from that.

Thirdly—[Interruption.] The hon. Lady keeps chuntering. Many of the schemes are UK-wide ones: we have extended the loans, the coronavirus job retention scheme and the self-employed income support scheme. Those can be delivered through the broad shoulders that the United Kingdom offers. It is true that, through that capacity to act as one United Kingdom, we have been able to protect up to 1 million jobs in Scotland. It is important that we work together. That is why we were engaging with the Scottish Government yesterday. More can be achieved if the Scottish Government and the UK Government work together. That is how, to date, we have protected up to 1 million jobs, and that is the best way forward.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

As we have just seen, uncertainty in Scotland is always a basis for grievance for the SNP. My right hon. Friend can end that uncertainty simply by clarifying that, should the scientific evidence demand a further lockdown in Scotland, the furlough scheme at 80% will be available to protect jobs in Scotland.

[Steve Barclay]

My right hon. Friend is right to pick up on that grievance culture. Through our ability to act on a UK basis, we have been able to offer the unprecedented support that we have to date. Furlough has always been a UK-wide scheme and, as the Prime Minister said, the Government will always be there to provide support to all parts of the United Kingdom.

[Mary Kelly Foy (City of Durham) (Lab)]

Last month, the Government disgraced themselves by voting against extending free school meals into the holidays for our most vulnerable children. Even if the Government will not reverse that cruel decision, will they at least follow Action for Children’s recommendations and extend free school meals for all families in receipt of universal credit?

[Steve Barclay]

The hon. Lady raises a serious issue and one that all Members of the House care deeply about, but it is also important to look at the package as a whole. We have put in an additional £9 billion of welfare support, recognising the increasing pressures. That includes the £20 uplift on universal credit, the lifting of the minimum income guarantee and the various other measures in the package. Above all, retaining jobs and getting people back into the labour market is the best way that we can protect people from poverty.

[Sir David Evennett (Bexleyheath and Crayford) (Con) [V]]

I welcome my right hon. Friend’s positive response on the additional measures of economic support. Does he agree that our Government have committed one of the most comprehensive and generous economic support packages anywhere in the world, worth more than £200 billion? That is the right approach in these difficult times. He rightly quotes the IMF in saying that our response is

“one of the best examples of coordinated action globally”.

Is it not also important that the IMF praised our response for holding down unemployment?

[Steve Barclay]

I am very grateful to my right hon. Friend for that. He is quite right to pick up on the IMF report and the comments of the director of the IMF. It is worth reminding the House exactly what the IMF director said: that the UK’s economic support package is

“one of the best examples of coordinated action globally”.

I very much agree with my right hon. Friend that that speaks to the comprehensive package that the Chancellor has put in place.

[Tonia Antoniazzi (Gower) (Lab)]

Yesterday, the Prime Minister said that funding would be available for the furlough scheme in the devolved nations, not just now but for the future. As the Minister has just pointed out, furlough is a UK-wide scheme, needed in all parts of the United Kingdom, not only at the behest of the Chancellor. This morning, however, the Secretary of State for Housing, Communities and Local Government said that it would be a matter for the Chancellor, not the Prime Minister. Will the Minister confirm today exactly what the situation is? Will he tell businesses in Gower and across the United Kingdom what the situation is? Also, will he tell us who is in charge, the Chancellor or the Prime Minister?

[Steve Barclay]

We have already extended the furlough for the rest of this month, and, as the PM said yesterday, we will always be there for all parts of the United Kingdom.

[Siobhan Baillie (Stroud) (Con)]

Some of the most difficult conversations I have had this year have been with Stroud’s wedding and events industries and their supply chains—great businesses such as Eastington Park, Stonehouse Court, Elmore Court and Bisley Hire. They are usually thriving, but they basically feel ignored. They have had a stop-start situation this year and are now nervously looking at next year, having lost a year’s revenue. Will my right hon. Friend commit to looking at this valuable sector again to see what support we can make available, and will he meet me to discuss this matter?

[Steve Barclay]

I am always very happy to meet my hon. Friend. She is right to talk about a sector that has been particularly hit by the impact of the covid pandemic. She will be aware that, as part of the comprehensive package of support, such sectors qualify for the extension to the job retention scheme and the cash grants of up to £3,000 per month to businesses that are closed. I also point her to the £1.1 billion of additional funding that has been allocated to councils, which is a key part of the business support at their discretion that they can allocate to those businesses acutely hit in their authorities.

[Christine Jardine (Edinburgh West) (LD) [V]]

Businesses across my constituency and across the country made irreversible decisions last week based on advice from the Government that furlough was going to end on Saturday. They now find themselves in a situation where furlough has been extended, but only for a month, and there is a complete lack of clarity still today about the devolved nations. Will the Chief Secretary please urge the Chancellor to extend furlough through to the spring—covid-19 is not going away at the end of this month—and can he give us a simple, one-word answer? Is furlough going to be available to the devolved nations, or is he going to continue this uncertainty, which is damaging the Union?

[Steve Barclay]

At the risk of repeating myself, I refer the hon. Lady to the reply I gave earlier, but she did make a specific point about those who may have recently been made redundant. [Interruption.] Again, the hon. Member for Glasgow Central (Alison Thewliss) chunters from a sedentary position. The hon. Member for Edinburgh West (Christine Jardine) made a specific point about those recently made redundant and I was just coming on to answer that precise point. Employees notified by real-time information submission to HMRC on or before 30 October are eligible for the furlough extension, but employees employed as of 23 September, which is the day of the job support scheme announcement, and notified to HMRC by RTI on or before that date who have since been made redundant can be re-hired. In answer to the hon. Lady’s question, the timing is important, but the point is that people can be re-hired as part of the furlough extension.

[John Redwood (Wokingham) (Con)]

I am glad that the Government agree that where, by law, they stop people working and earning a living, they should compensate them. Will the Government look again at the terms of the scheme for the self-employed—there are restrictions on several categories of self-employed who have no other means of earning their living and no large company support—and be more generous? Does my right hon. Friend agree that we need all those self-employed people to be ready to return to work to get some kind of recovery going soon, because the economy is in deep trouble?

[Steve Barclay]

I agree with my right hon. Friend that we need to ensure that the economy is able to bounce back quickly. That is why we have provided over £13 billion of support to the self-employed, which by international comparisons—I know my right hon. Friend looks at international comparisons—he will see is extremely generous. I have set out previously in the House part of the operational difficulties, for example with owner-directors in terms of what is dividend income and what is not. The point is that we have set out a generous self-employment income support scheme, but we need to deliver that operationally in a way that meets the tests set by, for example, the Public Accounts Committee, which has asked whether we have the right level of controls in place, given the speed at which these schemes were deployed.

[Sammy Wilson (East Antrim) (DUP)]

The latest ill-advised lockdown is going to present an enormous burden for the economy in terms of lost tax revenue, additional Government spending and reduced GDP. It is right that since the economic pain is being imposed by the Government, those affected should be compensated for the pain that they will suffer. I welcome the Chief Secretary’s assurance that the furlough scheme will apply across the whole United Kingdom, but can he tell us what Barnett consequentials will be received by Northern Ireland, Scotland and Wales for the business support grant that he announced in this package?

[Steve Barclay]

The right hon. Gentleman raises a valid and fair point. As I said on my call with the First Minister yesterday, I hope to be in a position to update her this week about the additional Barnett guarantee that we can give. The right hon. Gentleman is right to point to the consequentials that flow from the £1.1 billion of additional local authority funding that the Chancellor set out. He will also have seen, for example, the additional support that the UK Government gave to Transport for London, the rail support measures that we have provided, and so on. Those are the issues on which the Barnett consequentials will be shaped. He is right that it is important for them to have sight of that. That is why we have taken the unprecedented decision to give that up-front guarantee, and I hope to be able to give an update on that later this week.

[Adam Afriyie (Windsor) (Con)]

My heart is breaking for the once-thriving businesses across the Windsor constituency and the country. I have met owners of pubs, clubs, restaurants, bars, sports venues, salons and retail outlets. They cannot magically become online businesses. I have spoken to business owners who have literally been in tears on the phone and in person when they think about their staff and their livelihoods.

The new proposed lockdown will prove fatal to many such businesses. There are many questions about the strategy, the need for a lockdown and the generous support the Government are trying to give, but I will contain my question to this: how do the Government intend to protect retail businesses that are forced to close from the increasing dominance of online retailers, which often benefit from lower business rates and taxes than their terrestrial partners?

[Steve Barclay]

My hon. Friend has a deep understanding of business from his career prior to coming to the House. He is absolutely right to talk of the personal consequences, the commitment that people who set up and run businesses have made, and the devastating impact of the virus and its consequences. On the tax position, he will know from his time in the House that those are questions for the Budget and for my right hon Friend the Chancellor.

On the support that has been given to businesses, I direct my hon. Friend to the extension of the loans that we have given to help businesses with their cash flow, which recognises that the biggest cost for many businesses is the fixed cost of their property. That includes the up to £3,000 a month grant for those with rateable values above £51,000 and the support to local authorities, as I referenced in my response to my hon. Friend the Member for Stroud (Siobhan Baillie) a moment ago, for their discretionary support to specific businesses. It is part of that comprehensive package, but he is right to draw attention to the human consequence of those decisions.

[Peter Kyle (Hove) (Lab)]

Any additional investment to help the self-employed is welcome, and I do welcome it, but I ask the Chief Secretary to look at the eligibility criteria that he has set. With the furlough scheme, the eligibility criteria have been updated so that businesses that have been registered with a bank account right up to last Friday can apply. For the self-employed, however, the eligibility criteria have not changed at all and will exclude many self-employed people from all the additional investment that is now available. Will he look at that?

[Steve Barclay]

Such has been the number of times that the matter has been raised in the House and through the campaign, we have looked at it. Some of those issues have not changed—for example, the difficulty of determining what is dividend income as opposed to earned income, as I referred to in my answer to my right hon. Friend the Member for Wokingham (John Redwood). We took a decision to target those below the £50,000 threshold. Some of those issues have not changed from the previous period.

The hon. Gentleman is right that the furlough allows some of those who were excluded to come within scope, but I draw the House’s attention to the fact that, even within the House, there is a degree of conflict here. The Treasury Committee has said that we should be more willing to bring the cohort of the self-employed into scope, yet the Public Accounts Committee has expressed concern that we need to have much stricter operational controls because of the risks, for example, of fraud. We see that difference even between the two Select Committees in this House. Of the different cohorts within what is known as the ExcludedUK campaign, some of those on furlough will be able to come back into scope, but much of the rationale has not changed. Of course, we will continue to look at it.

[Martin Vickers (Cleethorpes) (Con)]

May I seek further clarification on the previous answer and on the point raised by my right hon. Friend the Member for Wokingham (John Redwood)? Self-employed people who have in effect created a limited company and draw dividends are being prevented by the Government from trading. Rather than just outlining the difficulties, will the Chief Secretary commit to saying we will find a way around that, so we can actually tell our constituents what support they will receive over the next few weeks?

[Steve Barclay]

For reasons I set out some time ago to the Treasury Committee, and for the reasons set out by the Chancellor, operationally the concern is that while there will of course be many legitimate circumstances where people wish to make a claim, unfortunately there will also be significant risk of fraud. I pointed to the fact that within the House itself part of the challenge is how we ensure we have the right balance between the speed of delivery—we move quickly to get schemes to people—with the operational controls we put in place. That is why we have taken the position we have.

[Apsana Begum (Poplar and Limehouse) (Lab)]

Since the previous lockdown was lifted, two leisure centres in my constituency have not reopened. Both facilities were outsourced by my council due in part to the lack of funding to local authorities. Leisure centres such as these are vital to the mental health and wellbeing of the communities they serve. Indeed, I believe they should be defined as an essential service. What will be done to ensure that that essential service and leisure centres such as St George’s and Tiller in my constituency do not face permanent closure as a result of the forthcoming, and any future, lockdown?

[Steve Barclay]

The hon. Lady is right to point to the pivotal nature of leisure centres in our constituencies. I think all Members would agree with that. I draw her attention to the £4.7 billion of additional funding we have given to local authorities as part of our response to covid, and to the discretion we have given local authorities so that they can apply that funding with the local knowledge they have and target it in the most effective way.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

First, I would like to welcome the unprecedented innovative package of support the Chancellor has put in place, which has undoubtedly helped to support businesses and families in my constituency. What more can my right hon. Friend do to support the coach tourism sector specifically? Small family companies such as A & P Travel and Sleafordian Coaches have done so much to make their transport covid-secure. However, while the venues they support have received funding from the culture recovery fund and enhanced local authority grants, they have not. We need to ensure that when the theatres, museums and the like are able to reopen there is still a viable coach tourism industry to get their customers there.

[Steve Barclay]

The coach firms sector has been particularly impacted as a consequence of covid. That is why, in response, we worked with the Department for Education to provide over £70 million of funding for local transport. That has been to the benefit of many, including coach firms. Of course, the wider package of support—for example, the furlough scheme, the cash grants of up to £3,000 for businesses that are closed, the extended loans and so on—applies to the sector as it does to others. The wider package applies, but I also draw my hon. Friend’s attention to the specific education funding that has been provided, which I know has been a help to a number of coach firms.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

If there were no confusion about the furlough support for Scotland in the event of another lockdown, the right hon. Gentleman’s own Tory MPs and Members across the House would not need to constantly have to ask for clarification. That confusion and uncertainty is a failure of his own Government, after the Communities Secretary said that it would be for the Chancellor to decide at the time of any future Scottish lockdown. Will the Chief Secretary apologise for that confusion and uncertainty? Will he meet the Scottish Finance Secretary, who has been requesting a meeting since Saturday, to discuss funding for Scotland and put an end to the chaos, confusion and uncertainty which is detrimentally affecting jobs and businesses in Scotland?

[Steve Barclay]

I do find it somewhat surprising to be asked to have a meeting the day after I had a meeting with the First Minister of Scotland, who I assume spoke with the authority of the Scottish Finance Minister. I have regular meetings with the Scottish Finance Minister. I hope, and certainly feel from my point of view, that we have a very constructive dialogue. It is in part due to her representations that the Barnett guarantee—this unprecedented up-front guarantee—was put in place, and I look forward to further discussions with her in the weeks ahead.

[Caroline Nokes (Romsey and Southampton North) (Con)]

Pubs such as the Crown Inn in King’s Somborne are really concerned about how they will weather the coming lockdown. They make the not unreasonable point that if it is safe to sell takeaway food, it should also be safe to sell takeaway beer. Will my right hon. Friend look at this anomaly and see if he can throw a lifeline to these valuable community hubs?

[Steve Barclay]

My right hon. Friend makes an interesting point. She will know that in terms of the epidemiology and the guidance, that is for my right hon. Friend the Secretary of State for Health and Social Care, but she is right with these questions to point to the economic impact of the measures. That is something on which we continue to have close dialogue with colleagues in the Department of Health and Social Care to ensure that she gets the clarification she seeks.

[Ben Lake (Ceredigion) (PC)]

Yesterday, the Prime Minister stated in the House:

“The furlough scheme is a UK-wide scheme and will continue to be available wherever it is needed.”—[Official Report, 2 November 2020; Vol. 683, c. 54.]

Will the Minister therefore confirm whether the Prime Minister was right and that furlough support will be available to Wales in the future, should public health priorities require restrictions to be reintroduced? A simple yes or no will suffice.

[Steve Barclay]

Several times now I have quoted what was said. The Prime Minister said that the Government will always be there to provide support to all parts of the United Kingdom. It is worth taking a step back and looking at the fact that the UK-wide ability to act is how we have been able to provide so much support across the UK with schemes such as the furlough scheme, the self-employed scheme, the loans, extensions and so forth. It is our ability to act across the United Kingdom that has helped many businesses to weather the storm.

[Dr Kieran Mullan (Crewe and Nantwich) (Con)]

I begin by thanking the Government on behalf of the businesses and employers in my constituency that have benefited and will continue to benefit from the extraordinary steps that have been taken. However, we know that, sadly, people have already lost their jobs and we may expect future job losses. What more can we do to help people to overcome this incredibly difficult time in their lives, in terms of support for jobseekers and for retraining? I know that there are jobs out there, but this is about how we get people into those jobs in growing areas.

[Steve Barclay]

My hon. Friend makes a hugely important point. It is not just the number of jobs that are lost, but the duration of time that people are out of those jobs that is critical in mitigating the economic scarring that results from this pandemic. That is why my right hon. Friend the Chancellor set out in his winter plan the plan for jobs, which included £2 billion of funding for the kickstart scheme. I was speaking to the Secretary of State for Work and Pensions this morning and I was very pleased to hear about the progress that has already been made on the kickstart scheme, which is up and running and providing support to 16 to 24-year-olds across our constituencies. It is part of the wider package of support on training—the tripling of traineeships, the £2,000 for apprenticeships, the £2 billion on kickstart—and as we accelerate our infrastructure and bring back the green jobs, such as through the decarbonisation of public buildings, that will also offer new opportunities for training as we deliver that record infrastructure investment.

[Caroline Lucas (Brighton, Pavilion) (Green) [V]]

The new grant scheme for businesses in the hospitality, leisure and accommodation sector is welcome, but those in my Brighton constituency need to know that all small and medium-sized enterprises in that sector will benefit. In particular, will the Minister scrap the business rates link and the rateable value cap from previous schemes, which caused such hardship? They meant, for example, that business tenants in shared buildings got nothing or that a pub owner in Brighton lost out because rateable values here are higher than in a place such as Bolton. Will he reassure them that they will not lose out again?

[Steve Barclay]

First, it is perfectly fair and reasonable to target a level of support shaped by the rateable value of the property, which is what my right hon. Friend the Chancellor has done. The hon. Lady is right to point to the fact that within different local authorities there are different pressures, which is why in the £1.1 billion that has been allocated, we have given discretion to local authorities in their ability to then target support to businesses in the way that best meets local needs.

[Craig Whittaker (Calder Valley) (Con)]

I thank my right hon. Friend and the whole Treasury team for the remarkable job they are doing in these difficult times. However, I wish to highlight the plight of the people and businesses that have fallen through the financial gap. These are businesses that, through no fault of their own, have had to cease trading or are trading with a massive reduction in productivity, and are doing so without grants or access to salary, not because the Government have closed their business, but because they are in the supply chain that supplies the businesses that the Government have closed. Will he at least give reassurances that consideration is being given to these businesses, which have suffered huge losses in the past nine months? I am thinking of businesses such as the Little Valley Brewery in Calder Valley and the Robinwood outdoor education centre.

[Steve Barclay]

My hon. Friend is right to pick out the specific challenges faced by the supply chain, often because they supply multiple sectors; they may not be in a given sector where there are specific issues, but they supply across a number of sectors. So he is right about the issue. Part of the reason we have taken the universal approach on the wider package of schemes, whether on support for cash flow with the loans and grants, or on the direct measures to support the labour market through the furlough and self-employed income support schemes, is to recognise that once one tries to demarcate sectors, that becomes difficult in the supply chain. So part of the package of support that applies to the supply sector is provided through those universal schemes, but he is right about the issues that these businesses face.

[Ian Mearns (Gateshead) (Lab) [V]]

Prior to this lockdown announcement, we had had almost universal calls for an extension to the full furlough scheme in areas with tighter restrictions, which Ministers had rejected for months. Despite that, the Government saw fit to announce a new version of this on Saturday, only hours before the previous furlough was due to be replaced by an inferior scheme for us in the north, as further restrictions were becoming inevitable in many areas. Many people in the north therefore now believe that until workers in the south were to be affected by the national lockdown, they were somehow thought to be worth less. Businesses in Gateshead and elsewhere are desperate for clarity and certainty to help them in planning and so that they know whether and how they can survive. Will the Chief Secretary commit today to publishing details of a comprehensive, ongoing financial support package available to businesses and their workers in areas that will continue to need it, where tiers of restrictions might, sadly, have to continue after 2 December?

[Steve Barclay]

First, on the suggestion that there has been a differentiated approach, the point is that a number of arrangements were put in place, for example, with the Mayor of the Liverpool City Region, with civic leaders in your own Lancashire region, Mr Speaker, and with South Yorkshire, because we recognised that there were additional pressures in those communities. We also put in further support retrospectively, recognising that a number of areas had been in tier 2 restrictions for a period. So the suggestion that additional support had not been offered does not stand that scrutiny. If one takes the deputy chief medical officer’s advice, it was inappropriate previously to have a national lockdown—Professor Van-Tam set that out—but the pathway of the virus and the infection increase was such that a more comprehensive approach was taken. So this is a response to the health pandemic as much as a response to anything that is geographically determined.

[Robert Largan (High Peak) (Con)]

I welcome the extra support for the self-employed and the news that many of those who did not qualify for the initial furlough scheme will qualify under the extended scheme, but I want to ask the Minister about the bounce back loans, which have been a lifeline for so many businesses in my constituency. Back when they made the applications for those loans, businesses would not have foreseen that disruption would have gone on for so long, so can steps be taken to ensure that they can apply for top-ups to their initial loan and get through the difficult winter ahead?

[Steve Barclay]

In short, yes they can. My hon. Friend raises a valid point, which is that a number of businesses will have taken out loans for what they felt was their need at that time. Further restrictions have been placed on businesses, which is why we have extended the period for availability of loans to the end of the year. He is right about that, and I can provide him with that reassurance.

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

The Minister explained that the response when he spoke to northern Mayors was about health data and not about regions, but he must accept that, by callously saying to workers in West Yorkshire and the north that they are on two thirds of pay, the Government have created a north-south divide. That divide is unnecessary when we should be coming together as a country to deal with this pandemic. Will he ask the Chancellor for clarity about the restrictions and for confirmation that, when we come out of this national lockdown, no worker will be expected to earn two thirds of their pay, so that workers in low-paid jobs are not living in fear when they look ahead to Christmas with no money in the bank?

[Steve Barclay]

The hon. Lady is conflating several different issues. First, the furlough had not expired; it was running until the end of October. It applied universally until that point, so the suggestion of it being applied differently is simply not the case. Secondly, the purpose and the design of the job support scheme is different from the furlough. The furlough is a response to the need for people to stay at home. The job support scheme is intended to try to encourage them back. That is why the design is for at least 20% of hours—one day in the office. Thirdly, as my right hon. Friend the Chancellor has set out on a number of occasions, the two-thirds support is dynamic in its interaction with the wider support through the £9 billion of additional welfare spending. One needs to look at the fact that there are two different purposes behind these two schemes, but the fundamental point is that there is no gap between the furlough that was due to expire on 30 October and the new furlough extension.

[Stephen Hammond (Wimbledon) (Con)]

I thank my right hon. Friend and the team for the package of support, which will save jobs and livelihoods across Wimbledon. He will know that since March, I have been raising the plight of people who are excluded from the scheme because they have been forced to close their businesses, so I support a number of the comments made about the self-employed. May I raise yet again with him industries such as events, exhibitions and hospitality supply, which are all excluded from the business rates scheme and the business grants scheme? They need that support if we are to have those vibrant contributors to the economy in the future.

[Steve Barclay]

I am aware of the concerns that my hon. Friend has raised. I point him to the fact that, to date, the Treasury has spent more than £200 billion as part of our comprehensive package of support. We have applied a universal approach in terms of the furlough, loans, business grants and so forth, but I am happy to have further discussions with him in the weeks ahead.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP) [V]]

While welcoming the news that the support will return to 80%, many people here in West Dunbartonshire and across Scotland regret the fact that this decision has been made at the last minute, when many have already made life-changing decisions in anticipation of the rate being reduced. To give those whom we will rely on to rebuild our economy some degree of certainty, will the Minister commit the Government to fill the gaps in the scheme so that freelancers and creatives—the excluded—can start to grow the companies of tomorrow?

[Steve Barclay]

I draw the hon. Gentleman’s attention to the future fund, which has provided additional support. On the timing of the furlough extension, I refer him to the answer I gave earlier. Those who have lost their jobs recently could come back through the furlough extension. Those employees employed as of 23 September—the day of the job support scheme announcement—and notified to HMRC by real-time information on or before that date who have since been made redundant can be rehired.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

I welcome the extension to the coronavirus loan schemes and the ability to top up bounce back loans. Can my right hon. Friend confirm that that ability to top up loans also applies to the coronavirus business interruption loan scheme? Will he also look at bounce back loans for customers of non-bank lenders? According to research by the all-party parliamentary group on fair business banking, which I chair, around 250,000 businesses currently bank with non-bank lenders who do not have access to these schemes because they do not get access to the Bank of England term funding scheme. Will he look at that problem?

[Steve Barclay]

I can probably go one better than looking at it myself, because the Economic Secretary to the Treasury, who leads on these matters in the Treasury, will have heard my hon. Friend’s representations and will do so. I know that he is looking at the issue of the coronavirus business interruption loan scheme specifically. On my hon. Friend’s second point, I think that there are 28 creditors, but I know that my hon. Friend the Economic Secretary to the Treasury will follow up with him.

[Matt Western (Warwick and Leamington) (Lab)]

The Chief Secretary will be aware that many businesses feel that the Government have acted arbitrarily in imposing restrictions on their sectors, and none more so than the hospitality and pub sector, with the 10 pm curfew. During the first lockdown, local independent brewers such as Slaughterhouse and Church Farm in my constituency, and also the independent pubs that they serve, such as the Somerville Arms and the Old Post Office, were able to sell takeaway alcohol, but that has now been banned by the Government. That will damage the sector dramatically. What has the Chancellor got against pubs?

[Steve Barclay]

Not least through the eat out to help out scheme, one can see the Chancellor’s support to this sector. Also, VAT was cut from 20% to 5%, and many within the sector have benefited, particularly from the wider universal package of schemes such as the furlough scheme. The exact health advice, as I said to my right hon. Friend the Member for Romsey and Southampton North (Caroline Nokes), is a matter for the Secretary of State for Health and Social Care. I will relay the hon. Gentleman’s concerns to him, but this is driven by the epidemiology and the health data; it is not a question of the Treasury acting arbitrarily, as he says.

[James Wild (North West Norfolk) (Con)]

The Government’s financial support has included the very welcome £200 million for hospices. However, the Norfolk Hospice in my constituency has warned that the national restrictions and the closure of charity shops will result in a loss of income of £100,000, so will my right hon. Friend ensure that when the Care Minister meets the sector tomorrow, a package of urgent support can be put in place for hospices, their patients and their families?

[Steve Barclay]

My hon. Friend raises an issue that unites the House. The huge value of the work done by the hospice movement was recognised as part of the package of measures put in place by my right hon. Friend the Chancellor, with £750 million of support for the charity sector and with the hospice movement being specifically identified. I am happy to continue working with my hon. Friend as we work together, and we recognise the importance of that sector.

[Mr Toby Perkins (Chesterfield) (Lab)]

Many small business owners have been forced to raid their personal savings to keep their businesses afloat over the past eight months, but that is not a bottomless pit. Many small business owners are not wealthy people, and the Chief Secretary to the Treasury must understand that if they go under, the whole company goes with them. The Treasury has now had eight months to get this scheme working. Why is it still excluding 3 million people? Does he not recognise how perilous the situation is for many of those businesses?

[Steve Barclay]

I drew attention earlier to the fact that more than £13 billion had been allocated to the self-employed income support scheme and through the income support grant. That indicates the support that the Treasury has given. The hon. Gentleman draws out, as the Chair of the Treasury Committee did, the specific issues around company directors. I have set out to the House the difficulty of clarifying precisely what is earned income as opposed to dividend income, but it is worth drawing the House’s attention to the fact that more than £13 billion of support has been allocated.

[Andrew Gwynne (Denton and Reddish) (Lab) [V]]

Before lockdown 2, more than 2,000 jobs based at Manchester Airport were reported to be at risk. The Government have provided business rates relief to thousands of retail businesses, including £700 million to the likes of Tesco, which have seen huge increases in profits throughout lockdown. Will the Government now step in to relieve 2020-21 airport business rates, following the introduction of a new travel ban, by funding the difference to local councils?

[Steve Barclay]

As I mentioned earlier, within the £1.1 billion of support to local authorities, we have given them discretion to respond to local needs, and that includes Greater Manchester as a region. On the airport sector specifically, one reason why we have allocated more than £12 billion to test and trace is that one of the key issues, as I was told by that sector, is the importance of travellers being able to be tested quickly and released sooner than has been the case in recent weeks. We are working extremely hard on that issue, because that is one of the key measures, alongside the financial support to local authorities, that would make a real difference to the airport sector.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I very much welcome the commitment that we heard yesterday from the Prime Minister that the furlough scheme will extend to Scotland whenever it is needed. Can the Chief Secretary to the Treasury confirm that the self-employment support scheme will also extend to my constituents in Scotland, ensuring that self-employed people are not left behind?

[Steve Barclay]

As I said earlier, these are UK-wide schemes. We continue to listen and engage, but the schemes apply on a UK-wide basis. That has been the case throughout, and that continues to be the case now.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I am sure that we have all heard heartbreaking stories about people who have been unable to claim for self-employment support because they had not registered or submitted a tax return for 2018-19. It seems that those people are still excluded from any support. Some of them have been trading for 18 months now. They are clearly not fraudulent and they clearly deserve some support; why cannot they get some?

[Steve Barclay]

As we referred to earlier, the point is that the package of support includes the £9 billion of welfare measures and the support that is available through local authorities and targeted at their discretion. I have also set out that there are those within that excluded population, for example those who were employed, who may be able to qualify for the extension, but for the reasons that we have covered in a number of earlier replies, part of the challenge from the Public Accounts Committee has been ensuring that we have the right operational controls in place, and that has been one of the difficulties with the cohorts to which the hon. Gentleman refers.

[Alicia Kearns (Rutland and Melton) (Con) [V]]

The Government’s bounce back and business interruption loan schemes have made a huge difference across the country, including the £90 million to support businesses in Rutland and Melton. What assessment has the Chief Secretary made regarding the macroeconomic impact of these loan schemes?

[Steve Barclay]

I very much welcome the impact that the various support measures have had on Rutland and on the businesses in my hon. Friend’s area. As for the impact of the various measures, the Office for Budget Responsibility produces an independent assessment of that, and it will do so on 25 November. That will provide an updated position, addressing the impacts to which she refers.

[Zarah Sultana (Coventry South) (Lab)]

While this week the Government have extended the mortgage holiday for homeowners, they have refused to help tenants, pay their rent or stop them facing evictions, even if they have lost their job or been placed on furlough. How exactly does the Minister think that that is fair, and will he instead commit to helping renters in Coventry South by immediately putting a stop to all eviction proceedings, reintroducing the evictions ban and cancelling rent arrears for all tenants?

[Steve Barclay]

There is, of course, a balance to be struck between the interests of those who are renting and those who rent out properties who also have financial pressures. The hon. Lady referred to the support that has been given, but the best support that can be given to those facing such bills is to help as many of them as possible to retain their jobs, and that is fundamentally what the package of support that we have put in place seeks to achieve.

[Jack Brereton (Stoke-on-Trent South) (Con)]

Further to the points about supply chains, many manufacturers in the ceramics industry in Stoke-on-Trent very much depend on industries such as hospitality and retail, so will my right hon. Friend agree to look at what more support can be given to those industries where order books have severely diminished?

[Steve Barclay]

I recognise the point made by my hon. Friend. I have spoken about the impact on the sectors to which he refers. That is why such a comprehensive package of support has been set out, including through the job retention scheme, which will now run until 2 December; the generous support for the self-employed; the cash grants of up to £3,000 per month for businesses; the £1.1 billion of council support; and the plans to extend the various loans, and indeed the future fund, to the end of January. This all recognises the wider pressures to which he refers.

[Liam Byrne (Birmingham, Hodge Hill) (Lab) [V]]

Unemployment here in the west midlands is soaring to a level that we last saw in the 1980s, but our Mayor has proved so ineffective that we have failed to secure 95% of what we have asked for in our recovery plan. Yesterday the International Monetary Fund’s chief economist called on Governments to bring forward large-scale investment to kickstart demand. In May, the Government set out their capital budget of £358 billion over the next five years. When are the Government going to allocate that capital budget, will the Chief Secretary maximise what is brought forward into the eye of the storm to kickstart demand for next year, and will he, for the first time, guarantee that the west midlands, at long last, will secure its fair share of that money?

[Steve Barclay]

I am slightly surprised to have a question from a former Chief Secretary that does not recognise the infrastructure investment that the Prime Minister set out in the summer and that my right hon. Friend the Chancellor updated the House on through his summer economic update, including the £2 billion going into green jobs and public sector decarbonisation, and the massive investment in High Speed 2, in road investment strategy 2, and in control period 6 through the various rail schemes that the Government have committed to. We are accelerating the delivery of that infrastructure through Project Speed.

The right hon. Gentleman is right to speak to the fact that there is a jobs challenge, and I think the concerns about the pressure on employment are shared across the House. That is why it is so important to get the right training package in place. That was addressed by my right hon. Friend the Chancellor on 24 September with his winter plan setting out schemes such as the kickstart scheme, which is up and running and is already delivering results. That is how, together, we will weather the storm in terms of bringing forward infrastructure investment but also reskilling people where they do lose their jobs.

[Mike Wood (Dudley South) (Con)]

Clearly hospitality and retail have had a particularly difficult time since the spring, but, as hon. Friends have said, there are very many businesses that may not quite come under hospitality, retail or leisure but rely almost entirely on those sectors for their business. Will my right hon. Friend look at how industries such as brewing, pub supply chains, events and weddings can access the support that the Government have provided, such as through the grants and business rate holidays, so that they can protect their jobs and still be growing and thriving once this pandemic is beaten?

[Steve Barclay]

First, I refer to the answer I gave earlier about the universal nature of the package. Another such area that my hon. Friend did not mention is the fishing sector, which was particularly impacted not only through its supply of the restaurant trade but through its exports, which were also hit. We have listened to concerns there and put in some additional support. But the best way we will support businesses, whether in the wedding sector or elsewhere, is by getting the virus down. That is why we have taken the comprehensive measures that we have for the next four weeks. That is the best way to be able to open up these sectors and get the people who have been furloughed or supported through the self-employed scheme on to the job support scheme, where they will then qualify for the furlough bonus, which will be further support that is available.

[Peter Grant (Glenrothes) (SNP) [V]]

For all the Minister’s sweet talking, the simple fact is that nearly eight months after the first lockdown was imposed, millions of self-employed people and small businesses are still being excluded from Government support. He has spoken approvingly today of comments from a recent Public Accounts Committee report, so may I draw his attention to the Committee’s 20th report of this Session, unanimously agreed by a Committee with a Conservative majority?

The report says:

“The Committee is disappointed that, so long after the beginning of the pandemic, HMRC has still not made sufficient use of its data to identify small businesses which have been left out of previous support packages, and therefore maximise taxpayer eligibility for grant support.”

Can the Minister not accept that the Committee’s disappointment reflects a view widely held among all parties in the House and that it is time for the excluded 3 million to be supported by actions, not just words?

[Steve Barclay]

I am somewhat surprised that the hon. Gentleman talks of actions when, as a result of our ability to operate UK-wide, we have been able to support nearly 1 million jobs in Scotland. Some 65,000 businesses in Scotland have benefited from the UK Government loan schemes and, as of 31 August, 242,600 employments were furloughed, at a take-up rate of 10%. Significant support has been offered to businesses in Scotland, as indeed it has been to businesses throughout the UK. It is odd that the hon. Gentleman talks about actions and ignores the nearly 1 million jobs that have been supported as a result of the actions that the UK Government have taken.

[Selaine Saxby (North Devon) (Con) [V]]

Tourism and hospitality businesses have worked hard to get back on their feet, so although I welcome the additional support that my right hon. Friend has announced, will he do all he can to help them to welcome back visitors in the spring?

[Steve Barclay]

I absolutely support my hon. Friend in her desire to see those businesses able to bounce back, which obviously requires us to get the virus rate down. We recognise that restrictions have affected tourism and hospitality businesses in particular, which is why we have put in place additional support. We will continue to look at ways to support those industries, but the key to doing so is to reduce the rate of infection through the measures that the Prime Minister announced yesterday.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for all that he has done; it is good to have the help.

Yesterday, the Prime Minister assured me that aid was coming to Northern Ireland businesses whose trade is affected by the lockdown here on the mainland. Will the Minister outline what form the aid will take for suppliers who have to cease operations? We should be ever mindful of the regional differences, with the Northern Ireland circuit break and tiers 1, 2 and 3 here on the mainland. On Thursday night, there will be a total lockdown here, whereas we will come out of the circuit break next week. What help will there be for businesses in Northern Ireland whose supplies travel across the water?

[Steve Barclay]

The hon. Gentleman is right to talk about the impact on businesses in Northern Ireland and part of that coming through its interconnectivity with the rest of the United Kingdom. As I said in an earlier answer, we will update the Northern Ireland Executive this week on the enhanced Barnett guarantee, but that unprecedented action taken to give an up-front guarantee will enable the Northern Ireland Executive to provide support to businesses. Of course, it will be for them to determine the exact scope of that business support.

[Mr Peter Bone (Wellingborough) (Con) [V]]

I congratulate the Chief Secretary to the Treasury and the Government team on the support that they have given the British people during this pandemic. I understand that No. 10 has confirmed that the Treasury has done a full economic impact assessment; will the Chief Secretary confirm that and say when it will be published? It will be very helpful if it is published before tomorrow’s vote.

[Steve Barclay]

As Members would expect, all decisions are informed by economic analysis. In terms of an impact assessment, the Office for Budget Responsibility will update its forecasts on 25 November. It is right that we have an independent forecast, and that will be produced in a matter of weeks.

[Rachael Maskell (York Central) (Lab/Co-op)]

Yesterday, the Prime Minister said that he will be doing much more to support the voluntary sector. Bearing in mind that 10% of charities are likely to fold, with a deficit of £10 billion accumulated over six months, what more will the Treasury be putting on the table and when will that be apparent?

[Steve Barclay]

As the Prime Minister has already set out, we put in place a £750 million package of support for the charity sector, as part of the more than £200 billion of support that we have given. As he has also said, and clearly demonstrated over recent months, he will continue to listen and adapt as circumstances require.

[Ruth Cadbury (Brentford and Isleworth) (Lab) [V]]

In response to earlier questions, the Minister said the Government were reluctant to extend additional financial support to the self-employed because of the need for strict financial controls, so why are the Chancellor’s team not as concerned about financial discipline when committing £12 billion of public sector money to the private sector for covid programmes, and doing so without basic procurement disciplines around proven competency, value for money and minimum performance targets?

[Steve Barclay]

That is simply not correct because the Department of Health, to which we have allocated funding for Track and Trace, is subject to managing public money rules in the same way as any other Department. It is subject to the decisions of its accounting officer and its Ministers in the usual way, so the normal managing public money rules would apply.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I am terribly sorry, but I missed out the hon. Member for St Ives—Derek Thomas.

[Derek Thomas (St Ives) (Con)]

Thank you, Madam Deputy Speaker. I hope it is worth waiting for.

Can I thank the Chief Secretary for all that is being done to help my constituents in west Cornwall and on Scilly? One of the great successes of recent years is the job growth across Cornwall, and that is because small businesses have been set up by entrepreneurs—individuals who know they cannot get a big job in big business, because they do not exist in Cornwall, so they have set up their business. The problem is that they are very early in their business, and they are growing, maturing and flourishing, but this year has been a disaster for them. They are at a point now where they just do not know if it is worth continuing, because of his second lockdown being announced, and they just do not know what the future holds. Will the Chief Secretary look very carefully at how we can encourage these people to stick with it, but also look at, as we have discussed already this afternoon many times, the support that is available to these fledgling businesses so they really have the finances to sustain these jobs? We must make sure these businesses can be part of the recovery that we will so badly need next year and beyond.

[Steve Barclay]

As my hon. Friend knows, it was largely down to his representations that specific support was put in place—for example, to maintain the ferry link that I know was critical for his constituents—and he deserves great credit for the convincing case that he presented to the Treasury, which secured that additional funding. On the wider point about support to the business community, it is in recognition of the importance of those small businesses that the Government have allocated over £13 billion of support to the self-employment income support scheme, but it is also why the Chancellor has put in place additional measures, such as extending the loans that are available to help those businesses get through this period to, hopefully, the more beneficial period as we come out of the winter period.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

I thank the Chief Secretary for his statement, and I thank all the Treasury team for all the work they have done throughout this pandemic and the agility they have shown in rapidly changing circumstances. Can I also put on record my thanks to those people who have had to implement that? The IT systems in HMRC have stood up incredibly well to a lot of brand new schemes. My constituents in Newcastle-under-Lyme will welcome the extension and enhancement of furlough and the self-employed scheme. For their benefit and for the benefit of the whole House, could he set out how the generosity of those schemes compares internationally and how we are doing in this country compared with the rest of the world?

[Steve Barclay]

First, I thank my hon. Friend for recognising the huge contribution of officials in HMRC, the Treasury and, indeed, across Whitehall in ensuring that that business support was delivered at the pace it has been. On the international comparison, I draw my hon. Friend’s attention to the report of the director of the IMF just last week, which I think is probably the best illustration of the way that the UK package of support is seen as offering one of the most comprehensive packages of support. It was recognised by the IMF and I think that shows where it stands in terms of international comparison.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

When concerns were voiced earlier about the implications that flow from the fact that rateable values in some parts of the country are far higher than in others, the Chief Secretary could only point to discretionary grant funding. However, not only has the detailed guidance that would allow local authorities to distribute that discretionary funding not yet been published, but it will be distributed on the basis of a flat rate of £20 per head, irrespective of geographical area, as he knows. So can the Chief Secretary first ensure that that guidance is published promptly, so that local authorities can plan, but also look again at better tailoring support to account for variations in rateable value across the country?

[Steve Barclay]

I will take away the fair point that the hon. Gentleman raises about publishing guidance and seek to respond to it constructively. In terms of the £20 a head, often representations have been made to me in the Chamber that it is vital for the Government to move at pace to deliver schemes quickly, and to do so fairly. Without reprising the previous urgent question where the Mayor of Greater Manchester, according to the Labour Front-Bench team, was acting for Great Britain in a way that the Mayor of the Liverpool city region and others were not, which I felt was an unfair characterisation of their position, the point is that we need to deploy schemes quickly, which is why we have taken the approach that we have.

[Mr David Jones (Clwyd West) (Con)]

I am sorry, at the end of this session, to have to raise the issue of furlough yet again but, as my right hon. Friend knows, the economies of north Wales and the north-west of England are very closely integrated and Welsh tourism and leisure businesses in particular are heavily dependent on trade from across that border. The Welsh lockdown imposed by the Welsh Government is due to come to an end on 9 November—some four days after the lockdown in England is anticipated to begin. Welsh leisure and tourism businesses will not be precluded from reopening by the Welsh Government, but in reality it will be purposeless for them to do so because the trade from England will not be there. Can my right hon. Friend say whether Welsh businesses that are affected by lockdown measures imposed in England will be able to access the coronavirus job retention scheme?

[Steve Barclay]

I know that my right hon. Friend is a strong supporter of the Union and part of the strength of the furlough scheme has been its ability to provide support across the United Kingdom; it is a UK-wide scheme. Thanks to the Treasury’s ability to operate a UK-wide scheme, we have been able to put in place more than £200 billion of support—the comprehensive package that I mentioned a moment ago—which is why it stands international comparison in terms of its scale and speed. That was recognised by the IMF director just last week, and the furlough will continue to be a UK-wide scheme.

[Madam Deputy Speaker (Dame Eleanor Laing)]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those anticipating the next item of business, we will suspend the House for three minutes.

Treasury

Steve Barclay Excerpts

Monday 2nd November 2020 Ministerial Corrections

[Neil Coyle]

I just want a clarification on the waiver process. Do the Government intend to make it the case that a local authority has to seek permission from a Minister in the Department to honour a legally decided case of discrimination and make the payment that a court has ordered? Is that the process that local authorities and other public bodies will have to follow?

[Steve Barclay]

That is a very valid question. In a whistleblower case, for example, there is no requirement on the local authority to submit a business case for approval. There are mandatory causes for exemption. However, where a discretionary exemption is sought, such as on a restructuring, it is necessary to submit a business case.

[Official Report, 21 September 2020, Third Delegated Legislation Committee , c. 7.]

Letter of correction from the Chief Secretary to the Treasury, the right hon. Member for North East Cambridgeshire (Steve Barclay):

An error has been identified in my response to the hon. Member for Bermondsey and Old Southwark (Neil Coyle).

The correct response should have been:

[Steve Barclay]

That is a very valid question. A whistleblower case, for example, does not require submission of a business case to HMT for approval. There are mandatory causes for exemption. However, where a discretionary exemption is sought, it is necessary to submit a business case to both the department and HMT.

Additional Covid-19 Restrictions: Fair Economic Support

Steve Barclay Excerpts

Wednesday 21st October 2020 Commons Chamber

[The Chief Secretary to the Treasury (Steve Barclay)]

I beg to move a manuscript amendment, to leave out from “House” to the end of the Question and add:

“recognises the virus is spreading differently across the country which supports the need for a regional and local approach; acknowledges the fact that repeated national lockdowns should be avoided given the cost they have on mental wellbeing, access to NHS treatment, and jobs in the economy; supports the Government’s Job Support Scheme which protects the jobs and incomes of those in affected businesses; recognises the extra financial support provided to Local Authorities for enforcement, local contact tracing and businesses, and approves of Government trying to work with local representatives to improve enforcement and Test and Trace.”.

May I begin by expressing my condolences, and the condolences of colleagues on these Benches, to the hon. Member for Ashton-under-Lyne (Angela Rayner) on the loss of her aunt?

The hon. Lady was right in her opening speech to talk about the shared desire of the British people whom we represent to do the right thing. That is why all Members of this House want to protect the lives not just of our family members, but of our constituents and to balance the actions that are needed to do so with protecting jobs and businesses. The best way to make good for the workers whom she referenced in her motion is to reduce the spread of the virus through targeted action. That is why the Prime Minister was right to outline a balanced approach, taking the difficult decisions to save lives and keep the R rate down while doing everything in our power to protect the jobs and livelihoods of the British people. Indeed, the deputy chief medical officer said just yesterday, when supporting the tiered regional approach, that it would be “inappropriate” to enforce a national circuit breaker as it is not

“consistent with the epidemiological picture.”

In fact, to be fair, the shadow Health Secretary was right also to talk about the wider damage of a national lockdown on our economy and society.

[Alun Cairns]

The evidence from the deputy chief medical officer in England is quite stark, and the statements really make people pay attention. Has my right hon. Friend seen any counter-evidence from the Welsh Government to suggest that one size fits all? My constituents in the Vale of Glamorgan have to face the lockdown of all businesses, as we did in March, in spite of the area having exceptionally low infection rates.

[Steve Barclay]

What was clear from what the deputy chief medical officer said was the importance of targeted action. There has been concern in respect of the Welsh Government, but I recognise that all leaders are balancing these difficult decisions. That is why I pay tribute to the leadership in Liverpool, Lancashire and South Yorkshire, who have worked constructively with the Government.

[Chris Bryant (Rhondda) (Lab)]

Today is the anniversary of the terrible events at Aberfan, and none of us will ever forget in Wales. I am enormously grateful to the Minister for providing £2.5 million for the moving of the tip in Tylorstown; I hope that that is just a down-payment on the rest of the money that will come. Will the Barnett formula be applied to all the financial awards that have been made to Manchester, Lancashire and other parts of England, so that additional money comes to Wales? My biggest fear is that there are so many businesses and individual tradespeople who simply cannot afford to take a fortnight off to self-isolate unless there is financial support for them.

[Steve Barclay]

First, the hon. Gentleman is right to recognise the importance of today, the anniversary of a national tragedy that unites us all. As I said to him last time, I am keen to work with him constructively, as I know he is, to take that work forward. Later today, I have a call with the Finance Ministers in the Scottish, Welsh and Northern Ireland Administrations, so I will be able to talk further about that. As a fellow Unionist, he will know that one of the advantages we have had throughout this pandemic is the broad shoulders we have been able to provide as a United Kingdom to the various business support and job support measures. What is announced for England is subject to the usual Barnett process, and I will discuss that. One of the concerns of Members across the House is about decisions taken in Wales that have an economic impact. It is important that these decisions are co-ordinated through the Joint Biosecurity Centre, in order that we have a consistent, scientific approach. That is a key issue that a number of Members have concerns about.

[Mr Perkins]

The Minister suggested a moment ago that the Mayor of Manchester had not been constructive; he praised how constructive the Mayors who had come to an agreement with him were. The Mayor of Manchester made a request for £90 million and was willing to be negotiated all the way down to £65 million, which sounds incredibly constructive to me. In the spirit of trying to bring everyone back together, would it not be better for him to recognise that the Mayor of Manchester is doing what he thinks is right—as are other Mayors and council leaders in other areas, whether or not they agree with the position that the Prime Minister and the Government come up with—and to say that everyone in this is attempting to be constructive?

[Steve Barclay]

I was making a factual point that picked up on the opening remarks of the hon. Member for Ashton-under-Lyne. The Mayor of Manchester, in his discussions with Government, expressly said that Manchester should be treated differently from other areas. The hon. Lady said that the Mayor of Manchester “spoke for Great Britain”. That does a disservice to other local leaders, who have also spoken for their areas and have worked constructively with Government. I do not think it is the case that the Mayor of Manchester, unlike the Mayor of Liverpool, speaks for Great Britain in the way that the hon. Lady suggested.

The Mayor of Manchester’s position is not deliverable operationally, because local authorities do not have access to welfare payments for the dynamic aspect of joint job support—I can come on to that in my remarks—and it was at odds with the tiering approach that we set out. There is a difference, I am sorry to say, between the approach taken by the Mayor of Manchester and the constructive approach taken by other local leaders. I do not accept the premise from the hon. Lady that the Mayor of Manchester alone speaks for Great Britain, and other local leaders in Liverpool, Lancashire, South Yorkshire and elsewhere do not, or that businesses in those areas should in some way be treated worse than the businesses in Manchester—that seems a remarkable position for the Opposition to take.

[Several hon. Members rose—]

[Steve Barclay]

I will make a little progress and then of course I will give way.

In taking forward the targeted action plan that the Prime Minister has set out, we recognise that there will be significant local economic impacts, particularly for the areas in tier 3. That is why the Government have set out a package of support, and indeed why, as I say, the Mayors in other areas have worked constructively with it. This package has a number of parts. I heard reference in the shadow Minister’s opening remarks to £8 per head. That is just one component of a much wider package. It may therefore be helpful to take the House through the full suite of funding that is available.

First, local authorities are absolutely critical to the tier 3 restrictions. That is why, in addition to the £3.7 billion of un-ring-fenced grants that were announced earlier this year, the Prime Minister announced a further £1 billion of support, so that is agreed funding for local authorities that will be allocated to them shortly. In addition to that, local authorities in tier 3 will receive a further £8 per head in respect of public health measures specifically linked to enforcement within the outbreak management fund. That goes alongside other measures such as the availability of military support, which sits in addition to the infection control funding that local authorities also have access to—a further £300 million that will support localised test and trace services, specifically within tier 3—and the £1.1 billion to support infection control within the adult social care sector. Before we get on to the discussion around business support or the support for individuals through the job support scheme, it is important not to talk about local authority support just in terms of £8 per head, because that is one component of a much wider package of support that the Prime Minister has announced.

[Mr Betts]

I welcome the support for local testing, tracking and tracing. It should have been done months ago: that is the reality of the situation. As regards local negotiations—I put this to the Health Secretary last night and he did not deny it—there are not negotiations; there is a financial package that the Government have decided on that has been offered to all areas that have been put up to tier 3 status. It is a case of saying, “Take it or leave it: there’s no extra money going to be negotiated.” That is exactly what leaders in South Yorkshire have said it is: lots of civil servants in a room telling us what we cannot have. These have been the discussions, not negotiations, that have been happening in South Yorkshire in the past few days.

[Steve Barclay]

There has been a framework that we have used to shape our discussions. However, is this not what the Opposition motion, in essence, is calling for—a nationalised approach? In fact, we just heard an Opposition Member calling for the exact opposite in saying that the Mayor of Manchester had a case that was supposedly better than that of the Mayors in Liverpool or South Yorkshire, so the Mayor of Manchester should be treated a preferential way to constituents elsewhere in the north-west. Yet the hon. Gentleman, who I know comes at this very constructively—I recognise that that has always been his approach in the House—says something different. There seems to be confusion among Opposition Members. Do they want a national approach or do they want the Mayor of Manchester to be able to negotiate something allegedly on behalf of Great Britain? I do not think that was his electoral mandate.

[Mr Dhesi]

Many individuals are not eligible for either the self-employed income grant scheme or the coronavirus job retention scheme. I have been contacted by many of my Slough constituents, particularly the self-employed, who fear that after November they will see their incomes plummet. Does the Minister agree that they cannot be ignored and that they need support, especially if they are to go into increased lockdown restrictions?

[Steve Barclay]

I do agree that they cannot be ignored. In the third section of my speech I will come on to the individual support that we have in place and where that stands in international comparisons. Indeed, we debated that at Treasury questions only yesterday.

[Rachael Maskell (York Central) (Lab/Co-op)]

The reality is that whether in Lancashire, Liverpool, South Yorkshire or Manchester, there are insufficiencies in the package that the Government are putting on the table. I know from my own constituents in York Central, now in tier 2, that our economy is collapsing. We need to have the proper underpinning, and that is why we need the dialogue. Different economies across the country have different complexities and different needs, and that is what the Minister really needs to get a grip of.

[Steve Barclay]

Sure, but for much of the passage of dealing with the pandemic, Opposition Members have often cited international comparisons. Now, when we point out that the scheme we have brought forward does stand very strong comparison internationally—in fact, the furlough scheme for eight months at 80% was way above what most international comparators offered—they say, “Actually, we do not want to apply international standards anymore. We want to apply a purely bespoke approach.”

The hon. Lady is right to point to the fact that businesses are facing real pain. There is huge pressure on jobs, and that is why the Chancellor set out, in the summer economic update, the acceleration of infrastructure schemes—I think she and I would agree on them—such as the green jobs for decarbonising public sector buildings and how we will meet our net zero obligations. I suspect we share the desire to create jobs through moving that forward and the acceleration of infrastructure through Project Speed.

The Chancellor set out his plan for jobs—the doubling of work coaches, the tripling of traineeships, the £2,000 for apprenticeships—because, as the hon. Lady rightly identifies, those businesses are under significant pressure. That is why, alongside the package of measures for local authorities, we have also applied business grant support of over £11 billion, including funding of leisure and hospitality grants of between £10,000 and £25,000. Further to that, the Government have allocated discretionary business support to mayors, in the case of Liverpool and Lancashire, of a further £30 million. To help businesses with their fixed costs, such as rent and bills, we have also introduced a new business grant scheme in England, and any business legally required to close can now claim up to £3,000 depending on the rateable value of their property. They can claim grant payments of up to £1,500 per fortnight and keep claiming that as long as their businesses are required to close. That is money that does not need to be repaid.

While the grants are England-only, we are the Government for the whole United Kingdom. To address the point made by the hon. Member for Rhondda (Chris Bryant), who is no longer in his place, about what that means for the UK’s ability to support businesses in Scotland, Wales and Northern Ireland—which we are committed to doing as the United Kingdom Government —it means we have guaranteed a further £1.3 billion for Scotland, Wales and Northern Ireland should they choose to follow suit.

[Kevin Hollinrake]

Does the Minister agree that the most important thing we can do for businesses is to allow them to stay open and to keep trading? Where we are requiring businesses to close, the schemes are good and purposeful, but there are some businesses that, because of the restrictions—for example, in hospitality with the one household rule—are effectively unviable as it is restricting their business to such a significant degree. Will he consider widening the job support scheme, for example, to those businesses that are just not viable in tier 2 and tier 3 for that reason?

[Steve Barclay]

My hon. Friend is absolutely right, and we debated this yesterday. Much of the debate is about tier 3, but there are businesses that are feeling the impact in tier 2, and we are acutely aware of that and we are discussing that with business leaders. The key issue there is that we have taken toggling measures, for example, the cut in VAT and the extension of the loans. |As he knows, as a senior business figure himself, cash flow is a huge issue for businesses, and the Chancellor has been very keen to work constructively with all business leaders, the trade unions and others, and to consult widely. We have been willing to listen and to extend, for example, the loans that were available in order to pick up exactly the point my hon. Friend makes in terms of businesses in tier 3.

[Ben Lake (Ceredigion) (PC)]

The Minister mentioned earlier that he will meet the Finance Ministers of Wales, Scotland and Northern Ireland later this afternoon. Is he in a position to tell the House whether he expects further support packages for Wales to be announced at that meeting ahead of the two-week firebreak that will come in on Friday?

[Steve Barclay]

We have a long-standing and established methodology in terms of support across the United Kingdom through the Barnett process that allows the broad shoulders of the United Kingdom—[Interruption.] I suspect that the hon. Member for Glasgow North (Patrick Grady) wants to come in on that point, so I will give way. It will be done through the Barnett process, but there are some specific issues raised, such as the guarantee, which we have discussed previously.

[Patrick Grady]

When the Minister meets the Finance Ministers this afternoon, he will hopefully be able to answer the points that the Scottish Finance Secretary raised in her letter to the Chancellor this morning asking for clarification about precisely this issue. We welcome the £700 million for support, but it is not clear whether that is purely for business support or whether it is supposed to cover all the additional consequences and costs that come from covid, including for the health service. It is important that devolved Administrations are given the support they need and any consequences that come from additional funding to the city regions.

[Steve Barclay]

I was reading that very letter at my desk this morning ahead of the meeting, and I know exactly the point that the hon. Gentleman refers to. We recognise—I think this was behind the constructive discussions we have had with the Scottish, Welsh and Northern Irish Governments—that we all need to display flexibility, given the unprecedented nature of covid. The volatility of the size of additional payments for covid is why we gave the guarantee, which I think the hon. Gentleman would equally concede was welcomed by the Scottish Government, as it allowed clearer planning in their response to covid. However, I would also make the point—on this we may disagree—that it is the broad shoulders of the United Kingdom that allow the scale of the UK Government’s response, which has protected so many jobs and businesses in Scotland.

The third area of the Government’s response, which speaks directly to the motion before the House, concerns individual support. Businesses that have been legally required to close, whether in tier 3 areas or elsewhere, will be able to claim a direct wage subsidy. For people unable to work for one week or more, their employer will still pay two thirds of their normal salary and the UK Government will cover the cost. The existing furlough scheme continues throughout October, with the new job support scheme available from November, so there will be no break in support for employees. To give businesses and people certainty, the scheme will run for six months through to the spring. The job support scheme is in line with schemes in most other major European countries, and to support the lowest paid through the crisis, we have also made our welfare system more generous and more responsive, with an additional £9 billion of funding.

Let me give the House some examples of how the job support scheme will work and interact with universal credit. A single person aged over 25 working full time on the national living wage and living in a one-bed, privately rented flat in Manchester will still receive 92% of their original net income. Likewise, thanks to the combination of the job support scheme and universal credit, a couple with one child living in a two-bedroom privately rented house, where one works part time and the other full time on the national living wage, will receive 90% of their original net income.

The question that was never answered by the Mayor of Manchester was how he would administer a top-up of the job support scheme, when he does not operationally have access to the information required to dynamically make the interactions of those payments work. It is not only that he wanted Manchester to be treated differently from Liverpool and Lancashire; he was also changing the purpose of the business support payments from one that was directed at supporting businesses in tier 3 areas to one that was about changes to our welfare provision across the entire United Kingdom.

I know that many of my hon. and right hon. Friends have been engaging constructively with the Government during these challenging times. In particular, I thank my hon. Friends the Members for South Ribble (Katherine Fletcher), for Leigh (James Grundy), for Penistone and Stocksbridge (Miriam Cates) and for Southport (Damien Moore). Despite being relatively new to this House, they have shown real leadership in their communities, supporting families, businesses and the vulnerable, and a determination to put their constituents first and do all we can to stop the spread of this dreadful virus.

This Government are always willing to listen and to work with local leaders. The critical point is that none of these policies exists in isolation. Taken together as a package, the economic support that we are providing for areas facing higher restrictions is broad, deep and consistent, and of course all that is on top of the £200 billion of support that we have already provided through our plan for jobs. I urge anyone who questions the support that we are providing to look at the whole plan that we have set out: half a billion pounds for local enforcement; over a billion pounds for local business support; grants of half a billion pounds for businesses ordered to close every month; billions of pounds to support jobs and incomes; and billions more to strengthen our welfare safety net. This Government will continue to protect the jobs and livelihoods of the British people in every region of our country, while also taking targeted action to reduce the spread of the virus.

[Several hon. Members rose—]

Oral Answers to Questions

Steve Barclay Excerpts

Tuesday 20th October 2020 Commons Chamber

[Mrs Maria Miller (Basingstoke) (Con)]

[The Chief Secretary to the Treasury (Steve Barclay)]

[Dr Mullan]

[Steve Barclay]

[Antony Higginbotham]

[Steve Barclay]

[Caroline Nokes]

[Steve Barclay]

[Mrs Miller]

[Steve Barclay]

[Joanna Cherry (Edinburgh South West) (SNP)]

--- Later in debate ---

[Stephen Timms (East Ham) (Lab)]

[The Chief Secretary to the Treasury (Steve Barclay)]

[Stephen Timms]

[Steve Barclay]

[Allan Dorans (Ayr, Carrick and Cumnock) (SNP)]

--- Later in debate ---

[Kate Osamor (Edmonton) (Lab/Co-op)]

[The Chief Secretary to the Treasury (Steve Barclay)]

[Kate Osamor [V]]

[Steve Barclay]

[Andrew Lewer (Northampton South) (Con)]

--- Later in debate ---

[Mrs Sheryll Murray (South East Cornwall) (Con)]

[The Chief Secretary to the Treasury (Steve Barclay)]

[Carol Monaghan (Glasgow North West) (SNP)]

--- Later in debate ---

[Lee Anderson (Ashfield) (Con)]

[Steve Barclay]

[Ruth Jones (Newport West) (Lab)]

--- Later in debate ---

[Mr Speaker]

[Steve Barclay]

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Public Health Restrictions: Government Economic Support

Steve Barclay Excerpts

Tuesday 13th October 2020 Commons Chamber

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

(Urgent Question): To ask the Chancellor of the Exchequer if he will make a statement on economic support available to individuals and businesses in areas of the country subject to additional public health restrictions.

[The Chief Secretary to the Treasury (Steve Barclay)]

Yesterday, the Prime Minister and the Chancellor set out further measures to support local authorities through the crisis. On Friday, the Chancellor set out how we will support jobs in every part of the UK through an extension of the job support scheme, and these announcements build on the Chancellor’s September statement on the winter economic plan.

Throughout the pandemic the economic policy focus has been clear—to save jobs. Last month, we set out our plans to help viable businesses that can open through the job support scheme. However, businesses that are required to close due to coronavirus restrictions will also need our help. On Friday, the Chancellor announced the expansion of the job support scheme. Where coronavirus restrictions legally require business premises to close, we will pay up to two thirds of an employee’s salary, up to £2,100 a month, if they cannot work for a week or more. The scheme is nationwide and will run for six months.

In addition, businesses in England required to close will be eligible for a non-repayable cash grant of up to £3,000 a month. This can be used for any business costs. On Friday the Chancellor and I agreed with the First Minister of Wales, the First and Deputy First Ministers of Northern Ireland and the Finance Minister of Scotland on this additional package of support. We have now also guaranteed an extra £1.3 billion of funding to the Scottish, Welsh and Northern Irish Administrations if they decide to do something similar, bringing total guaranteed Barnett funding for this year to £14 billion.

In addition, as announced yesterday, we are providing local authorities in England with around £1 billion to protect vital services, and up to £500 million for local authorities at high or very high risk.

These measures build on the Government’s economic package, one of the most generous in the world, and underline our unwavering commitment to the people of this country.

[Anneliese Dodds]

Just over a month ago the Conservatives passed a motion in the House stating that

“any deviation from this Government’s proposed plan will cause damage to the United Kingdom economy.”

The first deviation came two weeks later when the Chancellor announced his sink-or-swim job support scheme, design faults in which are already leading to substantial and unnecessary job losses. The second deviation came as a belated response to the imposition of localised restrictions announced on television last Friday, with further measures announced yesterday—yet Leicester, for example, has been under localised restrictions for over 100 days. The Chancellor told us to learn our new limits as we go. His handling of the economic crisis is testing patience to its limits, especially the patience of those whose jobs are threatened.

The Government must answer many critical questions, but here are just three: first, why will local areas be provided with support for test, trace and isolate only once they are already in tier 3? This is indefensible. Secondly, there is £1.3 billion-worth of unspent local grants. Why will not the Government allow this money to be used to support local businesses in affected areas? Thirdly, why are workers in closed businesses expected to face poverty as a result of the businesses they work for doing the right thing?

[Steve Barclay]

It is slightly odd that Opposition Front Benchers talk about deviation when their position has deviated as much as it has, not least on the curfew, which they said they would support yet refused to.

On the hon. Lady’s points of substance, the package of support announced by the Chancellor and Prime Minister did support local authorities with an additional £1 billion, as I said in my opening remarks, plus a further £500 million to address trace and trace locally, reflecting the fact that the Government are listening to local leaders and bringing forward responses. We saw that with the additional funding allocated to Merseyside and to Scotland, Wales and Northern Ireland—again reflecting our listening in conversations with the First Ministers of Scotland, Wales and Northern Ireland.

The hon. Lady makes a fair point about underspends that has been made by a number of colleagues. She is right to point to the sheer extent of support that we have offered, including the grants of £10,000 and £25,000. To deliver them at pace, they were allocated on the estimations that we had. As a result, the actual spend that has been required has led to some local authorities having very big underspends and others not. If we were to say that the authorities where the estimates were incorrect should benefit disproportionately, we would be accused of treating some unfairly compared with others. We met the need that was addressed at that time through the awards.

It is right from a fiscal point of view that the underspends are returned because they are surplus to the requirement on which they were allocated. In last week’s urgent question issues were raised by Merseyside Members, and ministerial colleagues engaged, listened and the funding for Merseyside more than doubled per head.

It is a slightly odd line of attack for the Opposition to say that we should not bring back underspends where they met their need but the estimations were inaccurate, yet not use the money to respond to the legitimate needs of areas such as Merseyside and elsewhere that are being moved into tier 3.

[Mr Speaker]

Order. Can I help the Minister? He is meant to be speaking through the Chair and not to the other end of the Chamber, and I hope that we can work together on this. Has he finished the answer to that question?

[Steve Barclay]

indicated assent.

[Mel Stride (Central Devon) (Con)]

My right hon. Friend and the Chancellor of the Exchequer have done a great deal to support the economy, but there has to be a careful balance struck between protecting against the virus and avoiding further economic destruction. With that in mind, what scientific evidence has the Treasury received that closing pubs at 10 pm gets that balance right?

[Steve Barclay]

We have to balance the evidence that the Government receive from a range of quarters. My right hon. Friend will recall that when the initial advice from the Scientific Advisory Group for Emergencies was put forward, the Government came forward with a range of measures, such as the rule of six and the curfew. Indeed, if we look at the projections that were made at that time, we see that we could potentially have had 49,000 or so daily cases by 14 October when in actual fact the figure on that date was 12,872. That indicates the fact that the package of measures put in place by the Prime Minister and the Chancellor of the Exchequer have had an influence. However, listening to the SAGE advice, it is recognised that we need to go further and that is why the tiered approach has been set out.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Chancellor of the Exchequer is proving exactly what Tory values are with this dogged determination to return to 1980s levels of unemployment. Switching away from the rhetoric of whatever it takes to hard choices exposes the fact that protecting jobs was an empty promise even before the end of furlough. He is risking more than 60,000 jobs in Scotland alone. The Institute for Fiscal Studies is clear. It says:

“Despite the claim by Chancellor Rishi Sunak last week that he would ‘always balance the books’, this will not happen, and he would be most unwise to try.”

Mass unemployment is a terrible policy, so will the Minister urge his boss to change course even at this late stage and extend furlough to save jobs, to use returned moneys to help those who have been excluded and to listen to the SNP demands for an £80 billion stimulus package? Will he listen to the nearly 70% of the Scottish public who want financial powers devolved to Scotland, or are the Government going just simply to plough ahead ignoring Scotland’s needs and further proving that Scotland needs the powers of independence?

[Steve Barclay]

It is a slightly odd premise to say that the Conservative Government are not supporting the response when we have spent more than £200 billion as part of that response, when we are currently supporting nearly half a million jobs in Scotland, when 8.9 million people across the United Kingdom have benefited from the furlough scheme and more than half of those are back in their jobs, and when more than 65,000 businesses in Scotland have benefited from our loan scheme. However, the hon. Gentleman is right in one aspect of his question. This Government are true to Conservative values and those are the values of the Union. It is through the shared broad shoulders that we are able to put in place the fiscal package of support that has enabled us to protect as many jobs in Scotland and around the UK as we have.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

Surely the Minister will recognise that the Welsh Government face the same task as UK Ministers in needing to manage their budget in the face of the unprecedented pressures brought about by the pandemic. That task is made harder by the lack of transparency from the UK Treasury. We know that the IFS has called on the UK Treasury to follow Wales’ example in publishing budget adjustments in full so that we know what announcements apply to Wales and how much budget is available. Will the Minister today agree to publish the information around the decisions so that we have transparency and Welsh Ministers can make decisions with confidence?

[Steve Barclay]

The hon. Gentleman talks about transparency for the Welsh Government. The Chancellor had a call last Friday, which I joined, with the First Minister of Wales as part of our transparency with the Welsh Government, so it is slightly odd to say that we are not being transparent. However, the hon. Gentleman is right that there are issues that need to be managed by the devolved Administrations and the concern he sets out is exactly why we provided the upfront guarantee on Barnett consequentials. We recognise that, in order that the Welsh Government can make decisions in advance of knowing what the Barnett consequentials are, it is important to give a forward-looking guarantee on that. That is why we gave the additional guarantee of £1.3 billion to the devolved Administrations, including the Welsh Government, as a response to the point that he raises.

[Mike Wood (Dudley South) (Con)]

A tenth of pubs have not reopened since lockdown in March while two thirds were already trading at a loss, even before restricted opening times, mandatory table service and the new restrictions announced yesterday. Will my right hon. Friend look at the support that is available for pubs that are not yet compelled to close, but are legally prevented from operating economically, and in particular state aid limits that threaten to prevent 10,000 pubs from receiving the support they need? Without that support, many thousands of pubs will close their doors and never reopen.

[Steve Barclay]

My hon. Friend is a champion of the pub sector and he speaks to the fact that it faces many challenges, but that is why we have been trying to strike a balance. Some would say the curfew is insufficient, but part of it is about recognising the very real pressures on the pub sector that he speaks to. Other colleagues in the House sometimes talk of the Sweden model but, as he will know, in Sweden the 2-metre rule is often more difficult for the hospitality sector and the pubs to adjust to. Ultimately, that is why the Chancellor set out the wider package of support, recognising the concerns he speaks of with the tax deferrals, the loans, the business rate support and the measures on VAT, which are targeted at the sector because of the very real concerns he correctly articulates.

[Stephen Kinnock (Aberavon) (Lab)]

My Aberavon constituents are increasingly concerned about the practice of firing then re-hiring, whereby unscrupulous employers are using the pandemic as a cover to sack their employees and then re-hire them on inferior terms and conditions. What steps are the Government taking to tackle this completely unacceptable practice and to exclude firms that engage in these behaviours from Government support schemes?

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[Steve Barclay]

The hon. Gentleman raises a legitimate concern that is shared across the House. It is wrong for companies to act in that way. One purpose of the furlough is to retain that link between the labour market, the person and their job. The furlough bonus is designed to strengthen that link, so people are brought back. He takes a constructive approach to these issues and I am happy to work with him in the weeks and months ahead, because this is a practice that all of us in the House would condemn. The schemes we have designed try to retain the link with the worker to prevent that sort of practice.

[Matt Vickers (Stockton South) (Con)]

Stockton South has some of the best bars, pubs, restaurants and breweries in the country, and many play an important role at the heart of the community. So far, they have benefited from a fantastic package of support, but the tier 2 restrictions pose a huge challenge. What will the Government do to protect jobs and ensure that we do not hospitalise our hospitality sector?

[Steve Barclay]

It is about getting the right balance because, ultimately, the most damaging thing for those pubs in tier 2 would be a further escalation of the virus and a situation in which they faced further restrictions. We have sought to ensure, first, that they can continue trading through tier 2, while having alongside the package of support for jobs, which the Chancellor set out in our winter plan to back those jobs with Government support, as well as a cash flow package. Cash flow will remain a key challenge as we go through the winter crisis, which is why we have such an extensive package supporting cash flow.

[Christine Jardine (Edinburgh West) (LD)]

I am sure the Minister was as concerned as me to hear reports that those people with businesses who take out bounce back loans to help them to follow the Government rules and survive this economic crisis—not just in their interest, but in all our interests—could face action up to and including repossession of their home if they struggle to repay those loans. Will he reassure not just the House, but people across the country, including in my constituency of Edinburgh West, that this Government will not allow that misery to be heaped on the misery already being suffered?

[Steve Barclay]

The very favourable terms of the bounce back loans were designed to deliver with speed. This was an initial challenge of the coronavirus business interruption loan scheme; we received feedback from debate in the House and elsewhere that the speed was not there, so that was part of the design for the bounce back loans. Another part of the design was the Government guarantee to get that credit to people. We have extended access to that scheme and the possible repayment period, so that issue should not be crystallising at this point. Clearly we need to look at the risk with regard to repayments. As I said to the hon. Member for Aberavon (Stephen Kinnock), I am happy to work with colleagues around the House, but the hon. Lady will be well aware of the package of measures that we have put in place to protect people vis-à-vis their mortgage and to protect renters from eviction.

[Bob Seely (Isle of Wight) (Con)]

Is there any specific evidence that swimming pools and gyms are centres for covid transmission? Has any research been done into rising obesity and unfitness levels, and has any research been done into rising unemployment caused by the closure of gyms and pools that is now happening in parts of the UK?

[Steve Barclay]

In some ways, that is slightly more of a Health question than a Treasury question, but I recognise that there is read-across from those businesses into the economy. In short, the opinion of the chief medical officer and the chief scientific officer is that those businesses do carry significantly more risk, which is why they have been harder hit in the guidance that has been issued. The package of support that the Chancellor set out recognises that businesses that are closed need additional support, which is why the measures announced by the Prime Minister and the Chancellor yesterday spoke exactly to the issue of businesses that have been closed due to the guidelines.

[Sammy Wilson (East Antrim) (DUP)]

The wisdom and necessity of some of the restrictions introduced yesterday have been questioned by leaders of cities in the north of England, by businesses and by the workers who are going to be affected, so it is right that the Government should introduce a package of support for businesses that are forced to close. However, there are many businesses that have not been instructed to close, but which will be forced to because of the restrictions placed on them. For example, the hospitality industry faces curfews, restrictions on table numbers and on who can sit at tables, and so on. How does this package of support assure those businesses that they are not going to be killed off by the restrictions that have been placed on them? They have been put in the firing line, yet seem to have been left without any level of support at all, given the conditions attached to this economic package.

[Steve Barclay]

The right hon. Gentleman speaks to an important issue, which was at the heart of the job support scheme’s design: recognising businesses that are not in closure, but which have difficulty bringing people back full time. The scheme provides support. The employer pays the first third, and the remaining amount is split three ways, with the Government supporting. Additionally, there is the wider package of measures, including support to local authorities to get better compliance, which is in the interests of businesses. The £1 billion to local authorities, the £500 million for local test and trace services, the business loans and the tax deferrals are all targeted at the sector that the right hon. Gentleman is talking about: businesses that can still trade and are not closed, but which do face further pressure. The winter plan sets out that support.

[Sir Graham Brady (Altrincham and Sale West) (Con)]

Care homes across the country are struggling to survive, and the areas with greater restrictions are particularly dealing with unprecedented levels of vacancies. What are the Government doing to support those vacancies and prevent the forced closure of care homes, which would in turn lead to many thousands of vulnerable people being rehoused or moved out across the community?

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[Steve Barclay]

My hon. Friend raises an important point. There is a strong interplay between the workforce challenges and the financial viability of the care home sector. One of the biggest risk factors is transmission as a result of staff, particularly agency staff, moving between care homes. He will know—and I know from my time as a Health Minister—that the financial pressures of that sector are not new pressures from this covid period; they are of long standing. The first tier of the £3.7 billion package of support that was initially allocated to local authorities was particularly directed at the adult social care sector. My hon. Friend will be aware that we are now on the second tranche of infection control funding to support these sectors. He speaks to a very real issue, which we are monitoring closely, and which is at the heart of how we address staff transfers between care homes and the infection risk that such transfers pose.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

The Government have said that schools will be among the last to close under any covid restrictions or lockdowns. Headteachers in my constituency have told me that they are having to pay additional costs for cleaning to keep schools safe. When will the Government announce additional funding for schools, so that this money does not come out of schools’ budgets, risking deficit for them?

[Steve Barclay]

As the Minister responsible for Government spending on behalf of the Chancellor, I would want to look closely at why the school in the hon. Gentleman’s constituency is saying that that very significant uplift in funding for schools last year does not appear to be reaching the frontline. The education funding settlement in the 2019 spending round should more than cover the cleaning costs. I will happily look at that, but if he looks at the funding settlement allocated in SR19, I think he will accept that it was a very generous one.

[Sir Edward Leigh (Gainsborough) (Con)]

It is not surprising that more and more Members are calling for more Government support, because the Government are forcing more and more businesses, particularly in the hospitality sector, out of business. The Chief Secretary says that his priority is to help business. The best way to help businesses is to let them get on and do business. We are going bankrupt as a nation—there will not be the money to pay for the NHS or pensions. What is the Treasury doing to row back against other parts of the Government and insist that we must allow British business to operate? He did not answer the question from the Chairman of the Select Committee, my right hon. Friend the Member for Central Devon (Mel Stride)—what is the scientific evidence for pubs closing at 10 o’clock? Is he leading the fight to help Britain to stay in business?

[Steve Barclay]

With respect, I did answer it. I pointed to the projection given by the chief medical officer and chief scientific adviser at that time, the SAGE guidance and the fact that the package of measures put in place by the Prime Minister has resulted in a lower infection risk. The CMO and others would recognise that this is a range of measures. My right hon. Friend says that the Government have gone too far and that there is no evidence for the curfew. The tenor of most of the questions one gets is that we have not moved far enough and should be taking more drastic actions. That speaks to the fact that this is a balanced judgment. One needs to look at the range of measures we are taking, and that is what I would refer him to.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

My constituents in Cardiff South and Penarth and the Vale of Glamorgan are under a local lockdown and dealing with the economic pressures that that brings. Does the Chief Secretary agree that it is deeply disappointing that major local employers such as British Gas/Centrica are engaging in the type of “fire and rehire” tactics that we have seen others try to use, such as British Airways? What message does he have for the chief executive of British Gas/Centrica about those measures, which I believe are completely unacceptable in the current climate?

[Steve Barclay]

I do not think it is acceptable to have a “fire and rehire” culture. The hon. Member for Aberavon (Stephen Kinnock) put it very well in his question, and I echo those sentiments. This is an area of common ground across the House. The package of measures we have put in place is to retain the link between a worker and their business, and that is very much the Government’s approach.

[Mr David Jones (Clwyd West) (Con)]

My right hon. Friend may remember that I raised with him last week the issue of tourism businesses in north Wales, which have been severely impacted by the decision of the Welsh Government to impose movement restrictions. Many of those businesses now face the prospect of closure, but they are not being required to close by the Government, and there is little help being offered by the Welsh Government. The expansion of the job support scheme last week was welcome, but that only benefits businesses that have been required to close by the relevant Administration. What further support can Her Majesty’s Government offer to Welsh tourism businesses, which are so badly affected by the current state of affairs?

[Steve Barclay]

Among the range of measures that we have put in place as support, one speaks directly to my right hon. Friend’s issue, which is the rent support of up to £3,000 for businesses that are forced to close. The Welsh Government can then use Barnett consequential funding to support businesses and to design a scheme as they see fit, but it is for the Welsh Government to design those schemes, not the UK Government. That is what devolution entails. What we have done through the comprehensive package of measures that we have put in place is ensure that there is Barnett consequential funding to allow the Welsh Government to put that support in place.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Like infectious diseases of the past, covid is a disease of poverty. Various indicators, including cuts to local authority funding, show that regional inequalities have been exacerbated over the past decade. Contrary to the Minister’s earlier remarks about the generosity of the packages to local authorities, only 10% of costs associated with the pandemic have been reimbursed by the Government. What is the Minister’s assessment of the actual impact that the recent announcement of measures have had on the Government’s ambition to level up?

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[Steve Barclay]

If the hon. Lady looks at international comparators, she will see that the Government’s package of support—more than £200 billion—is generous. I point her to the job support scheme, for example. A number of colleagues across the House question whether the 67% is sufficient, but the point is that it is dynamic in conjunction with the additional funding that has been put into welfare. [Interruption.] If the hon. Lady lets me answer the question, she will hear that I am talking about the support for people in businesses that have closed, which is an issue that all colleagues across the House take very seriously. [Interruption.] Well, that applies to regional equality. Opposition Members may not like the answer, but the question was: how does the UK compare with international comparators. I am pointing to the fact that the package of measures put in place—the furlough at 80% for eight months—was much more generous than that of most other countries. The business support package, including business rents, tax deferrals, loans, such as the bounce back loans and help to grow loans—we can go through the full list—bears comparison. The question over the past 24 hours is whether the latest measures bear international comparison. The point I was making is that if one looks at the French, German, Italian and other schemes, the two thirds support for those businesses that are closed, coupled with a dynamic relationship with the support on universal credit does bear favourable comparison with those, which is why I stand by my comments that, internationally, the UK has a world-leading package.

[Alec Shelbrooke (Elmet and Rothwell) (Con) [V]]

Further to the question from my hon. Friend the Member for Dudley South (Mike Wood) and the right hon. Member for East Antrim (Sammy Wilson), the tier 2 restrictions on social mixing are cutting the legs away from the hospitality industry. Equally, even in tier 3, restaurants will not necessarily be closed, but the fact remains that people are just not going to them. May I implore my right hon. Friend to extend the £3,000 grant to all hospitality venues in tiers 2 and 3 regardless of whether they are told to close? The industry is dying, because people are trying to do the right thing and not mix. Chief Secretary, the industries are open in name only. Please look at extending the available help before the industry is destroyed.

[Steve Barclay]

I hear the concerns of my right hon. Friend, but there is a balance that needs to be struck between the comprehensive nature and the fiscal cost of the range of packages that we have put in place and the measures that we have taken to control the virus. The balance that we have struck, in line with the advice that we have received, is about balancing how we control the virus with the wider implications not only for the economy, but for non-covid health issues as well. That is the balance that we are striking. Of course it is attractive for him to say that we should keep spending more and more, but we have already committed more than £200 billion.

[Mr Kevan Jones (North Durham) (Lab)]

The Prime Minister has been clear that the Government’s response to the covid crisis will follow the science. Last night, on a conference call with Professor Stephen Powys, the medical director for England, the hon. Member for Windsor (Adam Afriyie) and my hon. Friend the Member for Gateshead (Ian Mearns) asked about the science behind the 10 pm curfew on pubs and restaurants. Professor Powys said that there was no specific advice and in his words it was a “policy decision”. Given that thousands of jobs and businesses are at risk in tier 2 areas such as the north-east, can the Minister tell us what the logic is behind this policy decision?

[Steve Barclay]

As the right hon. Gentleman will know, that same SAGE guidance also says that there are multiple anecdotal reports of outbreaks linked to bars, and the Public Health England case control study also identifies visits to entertainment venues as a risk factor. It comes back to the point about balance. Some in the House say that there is a risk of infection in these hospitality venues and we should close them entirely; others say that we should have no restrictions at all. We have taken our decision on the basis that compliance tends to decrease later in the evening and that there are links to outbreaks in these venues. That is the balance that we have been striking.

[Laura Farris (Newbury) (Con)]

My right hon. Friend will be aware that there has been a high degree of public opprobrium for employers who have taken advantage of the furlough scheme and then engaged in poor employment practice. Returning to “fire and rehire”, will he consider an immediate guillotine on any employer who sacked 50% or more of their staff and then rehired some or all on reduced pay, so as to disqualify those employers from any further form of direct Government support, including the furlough retention bonus?

[Steve Barclay]

It is very many years since I gave legal advice as a community lawyer, but one of the things I remember is that in employment law there is often a lot of complexity around what can and cannot be done. The wider point that has been raised in the House, and which my hon. Friend’s question points to, is that there is a consensus that it is not acceptable for businesses to be doing that. Going back to the very first statement that my right hon. Friend the Chancellor gave as we started on the response to covid, he said that how people conduct themselves throughout this pandemic will be remembered. With regard those businesses that do act in this way, we will obviously need to look at that in due course.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP) [V]]

Given the Chief Secretary’s answers on “fire and rehire”, which I am very much heartened to hear, I hope that he will back my Employment (Dismissal and Re-employment) Bill. With no aviation support package as promised, the job support scheme riddled with holes and the abolition of airside tax-free shopping, further debt or job losses are the only options for firms. It is akin to 1980’s policies of “sink or swim”. Last week’s statement was completely silent on the sector. Is it now Treasury policy to write off aviation, making tens of thousands of jobs unviable?

[Steve Barclay]

The reality is that the aerospace and aviation sectors have received over £8.5 billion through the covid corporate financing facility. Grants for research and development, loans and export guarantees are also expected over the next 18 months. My right hon. Friend the Secretary of State for Transport recently launched the Global Travel Taskforce, which underscores the Government’s commitment to this sector. The hon. Gentleman talks about support. The aviation sector has benefited from our comprehensive package of measures, whether it is the furlough or tax deferral schemes, or all the other measures that we have put in place. That is all part of the wider support that we have given to UK business as a result of the broad shoulders we have as a United Kingdom.

[Julian Sturdy (York Outer) (Con)]

UKHospitality reports trade down by 40% to 60% due to the ban on the indoor mixing of households. Can I therefore add my name to that of other colleagues who have called for my right hon. Friend to commit to urgently reviewing what targeted support could be provided for enterprises stuck in tier 2, who, as it stands, receive very little specific help but will still suffer huge losses of trade from additional restrictions that come with tier 2, and ultimately will really struggle to stay open?

[Steve Barclay]

The most important thing for businesses in tier 2 is that we are able to control the virus. That is why the Government are investing as heavily as we are in track and trace—over £12 billion so far—and enabling businesses in tier 2 to retain their staff, which, again, is what the winter plan and the job support package is doing. The Government have made targeted interventions in support of businesses in tier 2, but we need to balance that against the wider fiscal position that we face.

[Alex Davies-Jones (Pontypridd) (Lab)]

The Minister will surely know by now that my local authority of Rhondda Cynon Taf has had local restrictions imposed on it for some weeks now. The Chancellor, when he can be bothered to show up, talks a good game, but it is clear that this Government do not care about people in communities across Wales. It was only earlier this year that Pontypridd was decimated by the worst flooding for many decades, and the UK Government simply sat on their hands and watched as homes and businesses were devastated. The Minister now has an opportunity to redeem himself and this Government. We need action now on the money that was promised, so what are his plans to finally assist the 3 million people who have been excluded from the Government support packages thus far?

[Steve Barclay]

On the issue of the excluded campaign, we have covered this pretty much every time we have come to the House, for the reasons we have set out. On support for Wales, the point the hon. Lady makes is at odds with the reality; in the urgent question last week, the hon. Member for Rhondda (Chris Bryant) raised the issue of some specific flood damage support, and between then and now we have addressed it, and I have written to him indicating the support available. The hon. Lady makes a point about the wider support without any mention of the guarantee on Barnett consequentials that has been given. It is unprecedented for the Government to give a guarantee up front on Barnett consequentials, yet she does not even mention it in her question.

[Craig Whittaker (Calder Valley) (Con)]

Track and Trace nationally gets a bad press, wrongly in my view, but when we add a local tier, with local people employed, the success rate on contacts climbs. Calderdale’s local tier takes the success rate on contacts to almost 90%. How much extra support is being given to these local tiers, which are another tool in the armoury to help protect business and local residents?

[Steve Barclay]

My hon. Friend is absolutely right about the importance of benefiting from the local knowledge on track and trace, which is why the Prime Minister and the Chancellor announced an additional £500 million to address exactly the point my hon. Friend highlights about the benefit of working closely with local directors of public health. That is exactly what we are doing, and the funding announced by the Prime Minister and Chancellor yesterday will enable that work to accelerate.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

Yesterday, I held a roundtable with hospitality businesses facing tier 2 restrictions, at which a restaurant owner said that his business would just bleed out with the economic support that was available. They asked whether we could look at increasing the intervention rate for the job support scheme in November in order to be more generous, because otherwise they will have to let go of their staff and there is the potential for large-scale closures of hospitality businesses. What additional measures can the Government bring forward for hospitality businesses that are under tier 2 restrictions?

[Steve Barclay]

Again, I appreciate the concerns the hon. Gentleman raises on behalf of businesses in his constituency, but, as I said to the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) a moment ago, by international standards the package of support the Chancellor has put in place stands fair comparison. That interaction between the support for those jobs and businesses that are able to be open, and the additional £7 billion of welfare support through universal credit, provides dynamic support for the workers to which the hon. Gentleman refers.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

My right hon. Friend spoke a few moments ago about the important role being played by universal credit at this time, so may I press him again on the Treasury’s intentions on the temporary uplift in universal credit? It is one thing for a Government to reduce a planned rate of increase of a benefit or even to freeze a benefit, but it is another thing altogether to give extra money to some of the poorest people in the country and then take that away. That is precisely what we are on course to do next April unless we change course, so will the Minister address that issue?

[Steve Barclay]

My right hon. Friend raised exactly the same issue at our urgent question last week, and I know he has a huge understanding of it from his time as Secretary of State for Work and Pensions. He knows full well that the announcement made was a temporary one to deal with the immediate consequences of the covid pandemic, and with all these decisions we need to balance the competing pressures at a particular time with the wider fiscal position.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

Fish and seafood wholesalers have been hit hard by a decline in demand from the hospitality sector. I have been contacted by My Fish Company, which is based in Fleetwood and which is concerned that the Government’s domestic seafood supply scheme appears to favour the larger national companies because of the short period of time in which to make an application and the level of resources that would require. So what reassurances can the Chief Secretary give to my constituents and companies based in Fleetwood, many of which are small and medium-sized enterprises, that the Government scheme is going to deliver for them?

[Steve Barclay]

When we agreed that scheme, it was very much with SMEs in mind. I would be quite keen to look at the delivery of that and to speak to colleagues in the Department for Environment, Food and Rural Affairs. As the hon. Member knows, as part of this wider package of support, and after listening to businesses such as the ones to which she refers, we put in place a £10 million support package in England for the fishing sector. That was about recognising that the restaurant trade in particular as a market had been hit and also that exports had been hit. We recognised that there was a pressure in the fishing sector and we provided support for it. I am grateful to her for drawing the House’s attention to the support that the Government have given to the fishing sector. If there is a particular constituency issue, I will ask DEFRA colleagues to look at it.

[Brendan Clarke-Smith (Bassetlaw) (Con)]

In Bassetlaw and north Nottinghamshire, we are now subject to tier 2 restrictions in line with Nottingham and the rest of the county, despite having significantly lower rates. Despite the tremendous support that has been offered so far, some in the hospitality sector are really struggling, as we have heard from colleagues in the Chamber, so will the Minister please tell us what can be done for those in tier 2 to help them to get through this incredibly difficult time? Will he also try to keep this under review?

[Steve Barclay]

In part, it is our winter plan to support those businesses in terms of the staff they are able to bring back. There is no gap between the end of the furlough scheme, which has run for eight months—by international standards, an extremely generous measure—and the start of the job support scheme. On top of that, there are the measures that my right hon. Friend the Chancellor announced on the extension of loans to help with cash flow, and on top of that there are the measures that the Prime Minister and the Chancellor announced yesterday—the extra £1 billion, the extra £500 million to local authorities, to help those businesses to control those things. That is ultimately why, collectively, we all have a responsibility to keep the virus down in order that those businesses in tier 2 are able to trade and come down into tier 1 as soon as possible.

[Apsana Begum (Poplar and Limehouse) (Lab) [V]]

Local lockdowns will undoubtedly affect small businesses that have already struggled due to the initial lockdown earlier this year. In my constituency, traders at Chrisp Street market and Watney market were impacted by the lack of Government support earlier in the year. Some of those traders operate from rented lock-ups, where their goods are stored, and business rates for those properties are paid for by the leaseholder, meaning that market traders did not benefit from business rates relief and therefore suffered financial hardship. May I ask the Chief Secretary to the Treasury what further financial support can be provided for those local businesses that are not covered by business rates relief in the event of a local lockdown?

[Steve Barclay]

The hon. Lady is right to point to the fact that when the Government put in place the £10,000 and £25,000 grants of support linked to premises, market traders fell outside of that scheme because it was based on property. The specific issue of market traders was raised with us, and in response we put in place a further support scheme giving discretionary grants to local authorities in order that they could tailor that additional funding to local circumstances. I think she could raise this issue with her local council and ask why it has not used the discretionary grants to support those traders to whom she refers.

[Caroline Nokes (Romsey and Southampton North) (Con)]

I hugely welcome the expanded jobs support scheme, which is so important, but what it does not do is help those businesses that supply the events industry—for example, the sound engineers and lighting engineers and, in my constituency, Beat the Street, which provides tour buses to the music industry. It has not been forced to shut down, but it has seen its trade wiped out. I urge my right hon. Friend to think of ways in which he can help companies such as that, which employ in excess of 150 people and can see no end in sight to their current financial woes.

[Steve Barclay]

My right hon. Friend rightly highlights an industry and a sector that have been particularly hit. Again, we have tried, through the package of measures such as the extension of the self-employed income support scheme, to help some of those within that sector. I think the business to which she is referring is more a pay-as-you-earn one, but it is often freelancers who work in, say, the lighting sector and the events sector, and they have been particularly impacted. That is why the self-employed scheme was introduced. To some extent, and given the over £200 million of support, the Chancellor has been very candid, as have I, about the fact that we were not in a position as a Government to save every single job. We are working with colleagues—I am always happy to work with my right hon. Friend—to look at what measures we can take, but it has to be balanced against the wider fiscal position.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con) [V]]

I thank my right hon. Friend and the Chancellor for all the support they have given to jobs and businesses over this period. However, as we move to the next stage of our battle, to echo other colleagues, will my right hon. Friend at least agree to keep an open mind about further support for hospitality businesses in tier 2, which are not required to close, but are going to struggle with reduced capacity? I am sure none of us wants to see hollowed-out communities as pubs permanently call last orders.

[Steve Barclay]

I am grateful to my hon. Friend for his question; I think the Chancellor has demonstrated throughout the health pandemic that he has both kept an open mind and consulted widely, with the TUC, business leaders and many others. That is why for hospitality specifically we had a range of measures in the summer, with eat out to help out, the targeted VAT support and cash support measures, and the job support for staff coming back, where the Government helped with some of those labour costs. Of course the Chancellor will keep these things under review, but the key issue for all of us is to get the virus down, and that is the best way of helping our hospitality sector.

[Ms Angela Eagle (Wallasey) (Lab)]

Yesterday, my constituency of Wallasey, as part of the Liverpool city region, was mandated by the Government to go into tier 3 restrictions. Does the Chief Secretary agree that the £40 million of unallocated support that his Government gave to the city region at the start of the pandemic could now be used, given that we are in tier 3, to support local businesses that are in the worst form of lockdown?

[Steve Barclay]

We did address this issue; I recognise that many hon. Members in the House have raised it on behalf of those councils where the initial estimate was at odds with the actual number of grants issued, but for the same reasons I gave earlier I do not think that would be equitable. Where there are pressures with tier 3, as with the conversations that took place for example between the Secretary of State for Housing, Communities and Local Government and leaders in Merseyside, among others, over the weekend, it is right that the needs are addressed pertaining to tier 3, not that the underspend on funding that was allocated in a previous period is then used in that way. If the Government were to agree that, many hon. Members across the House would feel that that was unfair.

[Stephen Hammond (Wimbledon) (Con)]

I thank my right hon. Friend for the package of support that was put in place yesterday, but may I raise again with him companies in the supply chain for the hospitality industry and the events and exhibition industry? He mentioned a moment ago the discretionary criterion available, but unfortunately local councils are not often using that. I ask him to look at the eligibility criteria for grants and support, which were raised yesterday. Many in the events and hospitality industry want to reopen, so will he meet me so we can arrange how it can be done safely?

[Steve Barclay]

First of all , I am always happy to meet my hon. Friend and I welcome the constructive approach that he always takes on these issues. In terms of eligibility, part of the design of the discretionary grant was to give discretion to local authorities to apply it in different ways, and it would be slightly at odds with that for the Government to say that there must be a particular way of applying it. However, he speaks to a sector that I know has been particularly hard hit by covid; we recognise that, and it is a factor that has shaped a number of the approaches we have brought forward, particularly on things such as cash flow. I am very happy to speak with him.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op) [V]]

May I be helpful to the Chief Secretary, as I have been sometimes in the past? I am the Member of Parliament for Huddersfield in west Yorkshire; we are tier 2 and, like so many parts of the country, we will be facing vast problems of youth unemployment. May I be very helpful by asking him to look at Margaret Thatcher’s history? She introduced a windfall profit tax on the banks. Why cannot he introduce a windfall profit tax year on Amazon, the gambling sector—you name it; we know who has done well in this crisis—and then use that money to fund a wonderful green revolution, with new green businesses, new green training and new green jobs for young people?

[Steve Barclay]

I have always found the hon. Gentleman constructive, and I welcome the fact that he is looking at the fiscal position we face as a country and how we may address that. It would be remiss of me, given my responsibilities, to stray into the terrain of the next Budget and tax-raising measures; I will leave that for my right hon. Friend the Chancellor.

The hon. Gentleman is right to highlight the very serious issue of youth unemployment. I think it is an issue that concerns us all in this House. The sectors that are most hit have concentrations of young people, particularly in the hospitality sector. It is really at the heart of the winter plan that my right hon. Friend brought forward in doubling the number of work coaches, in tripling the number of traineeships and with the £2,000 for apprenticeships. We have been looking at and learning from not just the Thatcher era, but actually from the previous Labour Government with some of the packages we discussed with the TUC and others. One of the great challenges we face is how we address not just the number of people who are unemployed, but the length of time they are unemployed. That is an absolutely key issue, and that is why the Secretary of State for Work and Pensions is so focused on doubling the number of work coaches. The hon. Gentleman is quite right to highlight that issue.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

Stoke-on-Trent is currently in medium risk tier 1, but we all know that any area can see an increase in infection rates. With the introduction of the tier system, many workers in the highest tier will once again be unable to go to work and make a living for themselves and their families. Will my right hon. Friend please reassure me that those who are unable to attend their place of work will continue to be supported by this Government, particularly those from low-income households with rents to pay?

[Steve Barclay]

My right hon. Friend the Chancellor has sought to do that throughout this crisis. In the interests of brevity—as requested from the Chair—I would point to the example we had with the shielding programme. I think it was a very proud record, which indicates that intent.

[John Spellar (Warley) (Lab)]

It is a shame the Chancellor is not here today because the Treasury needs to get a better answer to the question from the right hon. Member for Central Devon (Mel Stride) and others: what is the evidence, not anecdotes, to back up the case for the curfew and lockdown for the vast hospitality sector, which is facing closures, cashflow crises and job losses across pubs and clubs, restaurants and cafés, betting shops, bingo halls, casinos, theatres and cinemas, gyms and wedding venues? Treasury Ministers either have to secure a change in direction of Government lockdown policy or they have to up the level of support. Which is it going to be?

[Steve Barclay]

The fact that, in the course of this urgent question, we have been criticised both for not locking down enough and for locking down too much indicates that these are balanced decisions. The right hon. Member is right to point to the SAGE advice, which I know got a lot of media commentary this morning. In an earlier reply, I addressed the fact that there are concerns about outbreaks linked to bars and whether compliance is worse later at night, but that is part of the package of measures. That is why, in September, we brought in the additional measures we did. It is why, yesterday, the Prime Minister went further with a tiered approach, but it is a balanced approach.

[Mr Mark Harper (Forest of Dean) (Con)]

In answer to an earlier question, the Chief Secretary talked about the interaction of the job support scheme and universal credit. Could he perhaps flesh out a specific example? I think I am right in saying that people getting support from both of those schemes can get up to about 90% of their income, which is obviously of huge benefit. I would reinforce the point of the former Secretary of State for Work and Pensions, my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb). I accept that the UC extra money was temporary during the pandemic, but the Government’s own strategy document suggests that the pandemic will not be over by next April. I do not expect an answer today—[Laughter]—but it is something for the Treasury to think about.

[Steve Barclay]

On the wider point, my right hon Friend, as a former Government Chief Whip, knows full well that in government one balances these Budget submissions alongside the wider fiscal position that the Government face. On his first point, he is absolutely right. If we combine the 67% of support through the job support scheme with the dynamic element of universal credit, that takes us much more towards 88%. I can give specific examples, but I have been asked to be briefer—by you, Mr Speaker—in my replies. The point is that my right hon. Friend is absolutely right on that, and I am very happy to share some examples with him.

[Mr Speaker]

Especially when the Member does not want an answer, Minister! [Laughter.]

[Dan Jarvis (Barnsley Central) (Lab) [V]]

Without additional financial support, the restrictions to which South Yorkshire will be subject will deal a hammer blow to businesses and high streets across our region. Can I ask the Chief Secretary what assessment the Treasury has done on the economic effect of the tier 2 measures, and whether he is personally satisfied that the current support available will be enough to save jobs and businesses here in South Yorkshire?

[Steve Barclay]

I know through his local responsibilities that the hon. Member is in conversation with my ministerial colleagues in the wider discussions on our response. The reality is, as I said earlier, that one cannot be satisfied that every job in the area will be protected. It is about having a balance of measures that enables those businesses to be open that can be and takes action on the virus to suppress the increase. The previous question from one of his own parliamentary colleagues was to say that we should not be going as far as we are. He is saying, as I understand it, that we should be going further, but with wider support. That points to the fact that even within our own parties we have these debates.

It is about getting the balance. We have brought forward what is by international standards a very supportive package that combines the additional billion pounds to local authorities and the extra £500 million to localise track and trace, which the hon. Member and other local leaders have called for. We have listened to those representations, and that is reflected. I hope he welcomes that, and I look forward to working with him constructively in the days and weeks ahead.

[Neil O’Brien (Harborough) (Con)]

Oadby and Wigston in my constituency was the first place in the country to receive extra support because of our local lockdown. I pay tribute to Treasury officials and Ministers for putting it in place so quickly, but what is being done through the kickstart scheme and other schemes to create new jobs and to fight unemployment?

[Steve Barclay]

My hon. Friend raises a good point, and it speaks to the point raised on youth unemployment a moment ago. We have invested £2 billion in the kickstart scheme. We are tripling traineeships. We have the £2,000 for firms taking on apprenticeships. That is something that the Secretary of State for Work and Pensions is particularly focused on, as well as the doubling of work coaches. Linked to that is our investment in green jobs through net zero and the package that was announced by the Chancellor, including the decarbonisation of public buildings and homes and the creation of green jobs. We are bringing forward the £5 billion infrastructure package that the Prime Minister announced the week before the summer economic update. We then need to link those jobs to skills through schemes such as the kickstart, so that for those who are not able to retain their jobs, we are able to get them into the new jobs of the future.

[Margaret Greenwood (Wirral West) (Lab) [V]]

It is important that the Government understand the reality of people’s lives as new restrictions are introduced. Figures from the Low Pay Commission show that around 1,800 people in Wirral West are paid at or around the minimum wage. Many people on low pay work in bars and restaurants, and I am very concerned about the impact that the new restrictions will have on their ability to pay their bills. What action will the Government take to ensure that working people in Wirral West do not face poverty as a result of these new measures?

[Steve Barclay]

The hon. Lady is right to highlight that worry that many people have, particularly with the additional announcements. That is why we have taken the action we have, with the additional £7 billion into welfare to enable universal credit to top-up where there is an impact on people’s wages. That combination of the job support scheme and universal credit speaks exactly to the concerns she raises.

[Steve Double (St Austell and Newquay) (Con)]

The Government have rightly put in several billion pounds directly to support the rail industry, but that is in sharp contrast to the aviation sector, where very little direct specific support has been provided. In many parts of the country, our domestic air routes and our regional airports are just as much vital transport infrastructure as the railway is, so will my right hon. Friend please look again at what support can be given to the aviation sector, particularly our regional airports?

[Steve Barclay]

I know that my hon. Friend is a strong champion of the aviation sector, not least because he and I have discussed the issue. I know he has championed it within Government. It is not the case that the aviation sector has not had support. I pointed earlier to the £8.5 billion through the corporate financing facility. In terms of Government focus on the sector, he is absolutely right that it is an important sector for the UK to focus on. We have the largest aviation network in Europe, the third largest in the world. My hon. Friend draws attention to an important sector, and that is why my right hon. Friend the Secretary of State for Transport has launched a global travel taskforce, and is working with the travel industry as part of that.

[Joanna Cherry (Edinburgh South West) (SNP)]

Local lockdowns affect a far wider range of businesses than just those that are forced to close. Food and drink suppliers such as Edinburgh Beer Factory in my constituency will be severely affected. Small and medium enterprises such as that are the backbone of the Scottish economy, so why has the Chancellor’s furlough replacement scheme so drastically slashed support for innovative and thriving businesses such as the Edinburgh Beer Factory?

[Steve Barclay]

It has not. It has provided a universal offer to all firms that are able to be open, for exactly the reason at the heart of her question. She is quite right that the displacement impact goes far beyond areas in tier 3 or tier 2. Businesses supplying them are affected. We had a question earlier about support for the fishing industry. One of the key challenges with the fishing industry was exactly the point to which she refers—they were supplying other businesses that had been affected, and that is why we put £10 million of support into that sector.

We have taken a universal approach. It is at odds, though, with the questions we often get in the House, which are very much about whether we can support this sector or that sector. We have taken a universal approach because we recognise that one cannot necessarily draw a geographical line around the suppliers of businesses that are impacted.

[Julian Knight (Solihull) (Con)]

On Sunday evening, Mayor Andy Street was told that Solihull would be in tier 1. The day afterwards we appeared in tier 2. Does the Minister recognise the crushing blow that that gives to the hospitality industry and that tier 2 is economically the worst of all possible worlds?

[Steve Barclay]

I think we all agree in this House that we want to do all we can to get the virus down and get businesses open. We do not want businesses to be in tier 2 or indeed tier 3. We want to support them so that they are able to function as much as possible.

The timing of moving between different tiers is shaped by a range of factors—the number of positive tests, the amount of testing that is being done, the views of the local director of public health and the views of local leaders such as Andy Street. We all want to ensure that as many businesses as possible remain in tier 1.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab) [V]]

Data out today shows that over 1,700 more people in my constituency were unemployed in August 2020 than in August 2019, and that is before the existing furlough scheme ends. With unemployment in the north- east already rocketing to 6.6%, the highest of any UK region, why is the Chancellor allowing damage not seen since Thatcher in the 1980s to befall my region?

[Steve Barclay]

The hon. Lady is usually one of the most constructive Members. To suggest that a pandemic that all countries are grappling with is down to some sort of ideological approach by the Government is not accurate. The Government have put in place a furlough scheme for eight months that stands very good comparison with those of other countries. We have more than £200 billion of measures to support businesses, including in her constituency, and that is not only to help retain people in jobs. From a peak of 8.9 million on furlough, more than half of those remained in employment through the job support scheme. We are ensuring that more businesses are able to bring their staff back. But at the same time we are being honest. Some businesses will not be able to survive. That is why we put £2 billion into the kickstart scheme. It is why we are tripling traineeships. It is why we put funding into apprenticeships, with a £2,000 sign-on. It is why we are bringing forward infra- structure investment. It is to create those jobs for her constituents.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

VAT cuts and business rates holidays were superb for the hospitality operators but unfortunately did not pass down to supply chains such as ceramic manufacturers. Flexibility needs to be introduced into the job support scheme to allow continuous manufacturers such as those in ceramics the ability to access the support of the scheme for their weekly workforce. What plans are being made to allow ceramic manufacturers such as Churchill China and Steelite the flexibility to access the support of this scheme?

[Steve Barclay]

There is always a balance between the operability of schemes, the speed at which one can deploy them and how bespoke one makes them. I know that my hon. Friend is a huge champion of the ceramics industry, and I know it is important to Stoke and to businesses in his constituency. If there are specific issues, I am happy to pick them up offline with him, but the key message we usually get from businesses is the importance of getting packages to people quickly and in particular of addressing the cash flow challenges that they face.

[Mary Kelly Foy (City of Durham) (Lab)]

Last week, the Chancellor announced that workers at businesses and workplaces forced to close would be eligible for grants worth two thirds of their salary. That is clearly not enough. Will the Minister tell me whether bills, rents and mortgages will be charged at two thirds of the usual amount? If not, will the Government extend the evictions ban?

--- Later in debate ---

[Steve Barclay]

We have addressed this already in a number of questions. The point is that it is not simply two thirds; it is dynamic, aligned with universal credit, which then moves to top that up. The package of support, which is above that provided by many of our European comparators, is, if combined with universal credit, at 88% in many circumstances, not 67%.

[Rob Roberts (Delyn) (Con)]

Stevie the Sweet—not everyone’s pet name for the Chief Secretary, but Stevie who has the sweet stall on Mold market in my constituency—yelled at me as I walked past on Saturday. “Oi,” he said, “that Boris and Rishi and all the Treasury team are all right by me.” That is the story up and down my Delyn constituency, where my small business owners commend the work done by the Treasury and the support they have been given during this pandemic. Does my right hon. Friend agree that, when businesses in our tourism sector are being effectively locked down by draconian travel measures put in place by the Welsh Government, perhaps we need to step in and assist them a little more —for example, Greenacres and Tree Tops caravan parks in my constituency?

[Steve Barclay]

One of the strongest benefits to businesses in Wales, and indeed across the United Kingdom, is the broad shoulders and ability of the UK Treasury to act on behalf of the entire United Kingdom. That is a huge strength and it has helped to enable schemes such as furlough and others to be of benefit to businesses in Wales. On the measures put in place by national Governments, the more that is done through the Joint Biosecurity Centre with consistency, the better. But obviously, that is a decision for the Welsh Government.

[Mr Speaker]

Tim Farron, follow that.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I will do my best, Mr Speaker.

Outdoor education centres are a crucial part of our visitor economy. There are 60-plus of them in Cumbria, employing hundreds of talented people whose jobs are, I am afraid, now seriously at risk. Outdoor education centres provide huge benefits in personal development, education, and physical and mental health, which are particularly valuable, even essential, at this time. They are as safe to reopen as schools, yet they face imminent closure and ruin. Will the Minister meet with me and the heads of outdoor education centres so we can take urgent action to save them?

[Steve Barclay]

The hon. Gentleman raises a valid point, and having lived in his constituency for a couple of years, I know how important outdoor education centres are to the economy. He is also quite right to point to their benefit to mental and physical health, often for young people, who have been particularly impacted in recent weeks. I suggest that I alert Ministers in the Department for Education to the specific concern he raises, so they can meet him so that the Department’s guidance can take his point on board.

[Jack Brereton (Stoke-on-Trent South) (Con)]

The Conservative Government have stood up to protect jobs, incomes and businesses with unprecedented measures, so will my right hon. Friend reassure me that his priority is to create, support and extend opportunity, especially for people in Stoke-on-Trent, where there is a need to grow the quality of job opportunities?

[Steve Barclay]

My hon. Friend is quite right: this is about not only working together to retain as many jobs as possible, but looking to the jobs of the future. He has constructive views on how we use levelling up in terms of the future jobs that can be offered in Stoke. We need to combine that with our commitments on infrastructure, broadband, research and development investment, and net zero, then look at those future jobs and the skills training that is offered to his constituents in Stoke, so that those who move from their current jobs can quickly get into those jobs of the future.

[Mr Speaker]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for three minutes.

Freeports Consultation Response

Steve Barclay Excerpts

Wednesday 7th October 2020 Written Statements

[The Chief Secretary to the Treasury (Steve Barclay)]

On 7 October, the Government responded to the recently closed public consultation on freeports.

A freeport is a place to carry out business inside a country’s land border but where different customs rules apply. A firm can import goods into a freeport without paying tariffs, process them into a final good and then either pay a tariff on goods sold into the domestic market, or export the final goods without paying UK tariffs. They also allow goods to be temporarily stored without paying duties. Countries around the world have successfully used freeports to drive investment and prosperity.

The creation of freeports across the UK will be a cornerstone of the Government’s plan to level up opportunity across the country. Freeports will be national hubs for trade, innovation and commerce, regenerating communities across the UK. They can attract new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country.

Our published response confirms our intent to deliver freeports and sets out how our proposals will be achieved. At the centre of our new freeports policy is an ambitious new customs model which will improve upon both the UK’s existing customs facilitations and the freeports the UK previously had. Our model also introduces a package of tax incentives for businesses to invest in freeports to level up some of our most deprived communities. We are introducing new measures to speed up planning processes to accelerate development in and around freeports and new initiatives to encourage innovators to generate new ideas to create additional economic growth and jobs.

Freeports will be selected through a fair, transparent and competitive process, and will be expected to collaborate closely with key partners across the public and private sectors.

We want all the nations of the UK to share in the benefits of freeports. As such, we are working constructively and collaboratively with the devolved administrations to seek to establish at least one freeport in each nation of the UK.

The “Freeports Response to the Consultation” CP302 has been laid in Parliament. Copies are available in the Vote Office and Printed Paper Office, and also at https://www.gov.uk/government/consultations/freeports-consultation.

[HCWS493]

Public Service Pensions: Indexation Consultation

Steve Barclay Excerpts

Wednesday 7th October 2020 Written Statements

[The Chief Secretary to the Treasury (Steve Barclay)]

The Government are today publishing a consultation on “Public Service Pensions, Guaranteed Minimum Pension (GMP) indexation”. The consultation sets out how the Government propose to ensure they continue to meet their past commitments to public service employees regarding the full indexation of public service pensions, including for any GMP element related to membership of a public service pension scheme.

On 6 April 2016, the Government introduced the new state pension (nSP). The reformed system simplified pension provision but removed the mechanism that enabled those public servants in “contracted-out” employment to have their guaranteed minimum pension (GMP) fully price protected. An “interim solution”, full indexation, was introduced in 2016, which was later consulted on and extended until 5 April 2021. This ensured that public service pensioners had the GMPs they had earned in public service fully indexed by their public service pension scheme.

The consultation will last for 12 weeks and close on 30 December 2020. The consultation document can be found on: https://www.gov.uk/government/consultations /public-service-pensions-guaranteed-minimum-pension-indexation-consultation.

[HCWS495]

Areas with Additional Public Health Restrictions: Economic Support

Steve Barclay Excerpts

Tuesday 6th October 2020 Commons Chamber

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

(Urgent Question): To ask the Chancellor of the Exchequer if he will make a statement on economic support available to individuals and businesses in areas of the country subject to additional public health restrictions.

[The Chief Secretary to the Treasury (Steve Barclay)]

The decision to extend tighter lockdown measures to Liverpool city region, Warrington, Hartlepool and Middlesbrough was based on the latest health evidence, including advice from the chief medical officer and local public health authorities. The resurgence of the virus has demanded further action to minimise harm to health and wellbeing, while preserving the ability of people to work and businesses to trade in the areas affected. That is why, throughout this crisis, we have sought to strike a balance between minimising the burden faced by businesses and protecting public health. To that end, we have provided one of the most generous and comprehensive packages of support for people, businesses and public services, totalling £190 billion by July.

As the path of the virus and the threat to the economy have become clearer, we have taken further decisive action. Last month, the Chancellor announced the winter economic plan—a package of targeted measures to protect jobs and businesses, including the job support scheme to support the wages of employees in viable jobs and an extension of the self-employed income support scheme to the end of April 2021. We are also continuing the temporary reduction in VAT for hospitality until the end of March 2021 and the Government-backed loan schemes until the end of November this year. We are also providing an additional £100 million in surge funding to support the hardest-hit areas in containing covid-19. That is on top of the £300 million provided through the test and trace programme. We are offering grants to businesses that have been required to shut because of the new measures, worth up to £1,500 for each three weeks of closure.

Throughout this pandemic, we have prioritised a flexible and adaptable approach to economic support. We will continue in that spirit, and we stand ready to evolve our policies as required.

[Anneliese Dodds]

Thank you, Mr Speaker, for your courteousness and patience, as always.

Seventeen million people—one in four of us—are living under additional covid-19 restrictions. That was not inevitable: experts agree that it is linked to the continuing failure to deliver a functioning test, trace and isolate system. That failure has profound economic consequences and puts businesses and jobs at risk. Today, nearly 1 million people are still on furlough in the areas of the country that are subject to local restrictions or are on the watch list.

Support for local areas has only ever come after restrictions have been imposed—for example, a month later in Leicester’s case. There are leaked suggestions that the Treasury will be involved in decision making around restrictions, potentially to prevent such delays. When will the Government finally be in a position to deliver support hand in hand with the imposition of restrictions, not trailing them?

The response has been inconsistent: £3 million for Leicester, £7 million for Liverpool city region, an undefined funding package for the north-east of England and nothing for Greater Manchester or the west midlands. What criteria determine the allocation of support to areas under local restrictions? Will they be published? If not, why not? Do they truly reflect the needs of areas subject to restrictions? I note that the Chief Secretary did not talk at any point in his statement about support for areas with economic needs, not health needs. He referred to the local restrictions support grant, but can he confirm that no area currently qualifies for that grant because of current restrictions?

The millions of people living under local restrictions deserve better. When will the Government grasp the scale of the challenge and act to recover jobs, retrain workers and rebuild businesses?

[Steve Barclay]

The shadow Chancellor almost implies that the resurgence of the virus is unique to the United Kingdom, yet anyone who looks across the continent will see that many other countries, as we come out of the summer period, are seeing exactly the same trend and are dealing with it in in many of the same ways as we are in the United Kingdom.

The hon. Lady says that support has not been offered to those suffering from economic harm, but that ignores, for example, the announcement that I made in the Chamber some weeks ago about the £1,500 of support for businesses for every three weeks of closure as the result of a local lockdown—[Interruption.] Hon. Members should let me answer, rather than chuntering from a sedentary position.

The hon. Lady also ignores the fact that my right hon. Friend the Chancellor has extended many of the measures that we introduced in our initial response, including the package of loans, the tax deferrals and pay as you grow. Those are universal offers to support businesses, irrespective of whether they are in areas of acute lockdown or otherwise.

As I said at the start, and as my right hon. Friend the Chancellor said yesterday, we will keep listening, and we will keep striving to be creative in response to the challenges that we face. Where we can, he will act. That shows our willingness to adapt. The package of measures that my right hon. Friend the Chancellor brought to the Chamber just a few days ago, with the winter plan, illustrates that willingness to listen, to evolve and to respond to the virus, as the economic needs of the country dictate.

[Mel Stride (Central Devon) (Con) [V]]

Local restrictions are inevitably impairing many thousands of businesses in those areas, but some businesses are not just being impaired: because of the regulations, they are simply unable to trade. I am thinking about many companies in the hospitality sector—events companies, hotels, nightclubs and many more. Would my right hon. Friend recognise that and come forward with a specific set of support packages for those businesses, which the regulations basically stop dead in their tracks? In that way, the many thousands of jobs in those businesses, which are otherwise entirely viable, can be saved.

--- Later in debate ---

[Steve Barclay]

The Chair of the Treasury Committee raises an extremely pertinent point, which I know my right hon. Friend the Chancellor has heard loud and clear. That is why we have seen repeatedly in the measures that the Chancellor has brought forward a targeting—particularly, as the Chair of the Select Committee says, in areas such as the hospitality sector, which have been acutely hit—with a package of measures, such as the cut in VAT and the package over the summer. For specific areas such as the independent cinema sector, there has been the £30 million of funding for the British Film Institute. That is an individual measure, but it does not address the much wider part of the cinema sector and the major chains. It is about looking at targeted measures of support in response to the issue that the Select Committee Chair raises.

[Alison Thewliss (Glasgow Central) (SNP)]

Local lockdown is a reality, and there is a potential for a national lockdown of some kind as we go into the months ahead. Livelihoods have been disrupted once again and the viability of businesses is being threatened by these restrictions, which are necessary to protect public health.

Kate Nicholls of UKHospitality told the Treasury Committee this morning that sector-specific restrictions require sector-specific support. What sector-specific support is the Minister going to bring forward for sectors such as hospitality, events, tourism, funfairs, culture and the arts? The Chancellor earlier seemed to suggest that people should just go and get another job, which is deeply offensive to many in those sectors.

Failing to support and sustain businesses right now risks putting those businesses over the edge so that they will not be there for a recovery in the future. The Minister must speak to the Chancellor today, extend the furlough in the self-employment support scheme and fill the gaps for those who have not had a single penny from the Government since lockdown began. People are depending on this UK Government, with the economic levers that they have. The Government are failing in their duty to protect those jobs and livelihoods right now. They are letting millions of people down and accepting the harm of mass unemployment that will follow.

The Scottish Government are limited in how much they can spend and in how much they can borrow, which is very limited. They do not even have the certainty of a UK Budget to know how much they will receive in the months ahead. If Scotland needs to lock down on public health grounds, how much money will come in support?

[Steve Barclay]

The hon. Lady says that she seeks targeted measures, but then seems to ignore the £1.57 billion that the Chancellor announced for the arts—exactly the sort of targeted package that she was referring to. She then says that that is not enough, but it is unclear how long the SNP would want to extend schemes such as the furlough, how targeted that would be on specific sectors and what that would mean for the supply chains for those sectors. We think that it is right to be honest with the British public and ensure that we target support beyond the eight months of the furlough, in the way that the Chancellor set out, with the job support scheme and the extension of the self-employed income support scheme.

On certainty of funding for the Scottish Government, I have had regular discussions with the Scottish Finance Secretary. I would have welcomed the hon. Lady’s acknowledgement that we had done something unprecedented in guaranteeing the Barnett consequentials in order—as the Scottish Government had requested, and responding to their wishes—to give them confidence in the funding pipeline. That had not been done before. The Government did it to give the Scottish Government confidence on the Barnett consequentials. An acknowledgement by the hon. Lady of that point would have been welcome.

[Chris Grayling (Epsom and Ewell) (Con)]

Although I am clear that my right hon. Friend and his colleagues in the Treasury have done a Herculaen job in bringing forward schemes to support jobs in the economy, like the Chair of the Treasury Committee, I remain concerned about those sectors that are unable to operate because of Government restrictions. I cite particularly the events industry and our aviation sector—I think especially of the regional airports, which will be affected by regional restrictions. May I ask my right hon. Friend to look with colleagues across Government at ways in which we can get those sectors at least partially working again, with proper social distancing rules? I cannot believe that it is not possible to do that. If it is possible to go to a supermarket, surely it is possible to have airport testing, and socially distanced trade shows and similar to get some of those sectors moving again.

[Steve Barclay]

My right hon. Friend is right that it is important, as we live with the virus and accept that it will be with us for longer, that we constantly learn from that and see what lessons there can be, not just in terms of, for example, regional air travel, but how that reads across into other matters such as non-pharmaceutical interventions. My right hon. Friend’s point is exactly why the Chancellor said yesterday that he will keep listening and striving to be creative. His track record has demonstrated that. I look forward to working with my right hon. Friend as we learn those lessons.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

Many businesses may not have to close because of local restrictions, but they have seen a drop in footfall and a decline in their business. I am thinking of many small family-run businesses that have approached me in Lancaster in Fleetwood. Will the Chief Secretary outline what support will be available for those businesses and what they can expect when local restrictions are put in place?

[Steve Barclay]

For exactly that reason, the Chancellor set out the package of measures in the winter plan. We recognise that there is a balance, and we have sought to strike one that enables many of those businesses still to trade—so restrictions have not led to closure of certain businesses, as full lockdown did. However, we acknowledge that there has been an impact, particularly on cash flow. That is why the Chancellor set out the furlough bonus and the job support scheme and extended what is, by international comparisons, one of the most generous self-employed income support schemes. We recognise that there is a balance between the health measures that we are taking and the hon. Lady’s legitimate concern about the impact on businesses, particularly their cash flow.

[Jane Stevenson (Wolverhampton North East) (Con)]

There is no crystal ball that will tell us how bad the virus will be in various areas. I thank the Chief Secretary for his assurance that the Government will be flexible and continue to offer targeted support in areas of high coronavirus rates. Will he also assure my constituents in Wolverhampton North East and people in the Black Country that the Government’s levelling up agenda will not be forgotten in the coming months?

[Steve Barclay]

I am happy to give my hon. Friend that assurance about levelling up. It is at the core of the Government’s mission. It is a key priority of the Prime Minister and consequentially of all Ministers. We are actively working in the Treasury to accelerate under Project Speed our infrastructure investment to ensure that it is better targeted in terms of place as well as scheme.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

London, which is now on a watch list, is not only our financial centre but our cultural capital. [Interruption.] I believe so. It is the nation’s beating heart. Despite the £1.57 billion arts rescue package, freelancers and the self-employed in the sector in my constituency have not seen a penny since March. Established venues such as The Questors in Ealing face a record loss this year because the panto is off—oh yes it is! Will the Chief Secretary not be a villain and sort this out now?

[Steve Barclay]

I shall resist pursuing the panto theme, although I am not sure too many villains have allocated £1.57 billion to the industry in addition to the other package of support that the Chancellor has announced. The hon. Lady speaks of a real concern, which we are acutely aware of. The House has debated at length the issue of that subset of the self-employed who were beyond the date of the initial package and I do not think we need to rehearse that argument, but I recognise that it is an issue of ongoing concern. By international standards, the self-employed income support package that we have put in place is extremely generous, and my right hon. Friend the Chancellor extended it further in the winter plan.

[Sara Britcliffe (Hyndburn) (Con)]

Hyndburn and Haslingden have been in local restrictions since 31 July, and were only removed for a short period beforehand. My local authorities are playing a huge part in supporting my community, to support the most vulnerable people and keep vital services running. Will my right hon. Friend outline what steps the Government are taking to support them and what further support is being considered if further restrictions are imposed?

[Steve Barclay]

My hon. Friend is quite right to single out the huge amount of work being done by local authorities up and down the country to assist us in our response to the pandemic, and I am sure that I join many hon. Members in paying tribute to that work. She will be aware that my right hon Friend the Chancellor announced £3.7 billion of grant support for councils, an extra £1.1 billion of support for social care providers, and on top of that £300 million as part of our enhanced track and trace. In addition, £100 million was announced for the surge, in our response to local authorities. It is an important point; we work very closely with local authorities as part of our response.

[Christine Jardine (Edinburgh West) (LD) [V]]

We now have local lockdowns on top of the threat of further national restrictions, warnings daily from various sectors, and the threat of mass unemployment. Many companies are under threat because they are being responsible and following restrictions, so, bearing in mind what the Secretary of State has said about flexibility, will the Government now accept that an extension to furlough into June 2021, which experts say could protect more than 1 million jobs, is absolutely vital to those companies?

[Steve Barclay]

I am very proud that, as a result of our ability to act as one UK, the broad shoulders of the United Kingdom have enabled us to protect almost a million jobs in Scotland, supporting nearly half a million through the furlough scheme, and 65,000 businesses in Scotland have benefited from the UK Government loan scheme. The ability of the Treasury and the Government to act and support businesses and jobs in Scotland has been enhanced by our ability to act as one United Kingdom.

On what further measures are taken, I do not agree with the hon. Lady that the solution would be to extend the furlough scheme indefinitely, because I think that would hold out to people the expectation of a job that may never return, and do so at very significant cost. That is why we need to support those jobs that are viable, and, in addition we need a training package to enable people to get the skills to re-enter the labour market when they are needed.

[Dr Kieran Mullan (Crewe and Nantwich) (Con)]

Does my right hon. Friend agree that while some parts of the Labour party see this as a good crisis to exploit, we have actually managed to ensure that our response has helped the least well-off the most, proportionately?

[Steve Barclay]

It has been a time when most people have come together and worked together to respond to the very legitimate concerns that we all have on behalf of our constituents. The more we can work together across the United Kingdom and with local authorities and other stakeholders, the stronger the Government’s response to the pandemic.

[Kim Johnson (Liverpool, Riverside) (Lab)]

The further restrictions announced on 1 October will have a huge impact on the Liverpool city region’s retail, hospitality and leisure sector—a sector that accounts for 20% of the city region’s economy. The end of the furlough scheme and the 20% below self-employed income support scheme will impact thousands of jobs and hundreds of businesses. The £7 million to be shared with other areas is not enough. The city region has therefore called for a support package totalling £710 million, in order to ensure that we have an economy to revive. Will the Chancellor make a statement on what financial support will be made available to the Liverpool city region?

[Steve Barclay]

The hon. Lady says that there should be a package for the Liverpool city region of £700 million of additional funding. That would equate to over £23 billion if applied evenly on a per head basis across England. It is important that we are proportionate. Of course, the £7 million is not in isolation; it sits alongside the many other things that have been announced, including £130 million of un-ring-fenced funding to the Liverpool city region in March; but I am happy to continue to work with colleagues across the House in considering our wider response.

[Nigel Mills (Amber Valley) (Con)]

May I return to the sectors that are effectively closed by the lockdown rules? Will my right hon. Friend ensure that when the Chancellor is looking at what support he can give, he thinks about companies in the supply chains to those sectors, which have lost all their orders but so far have not had the benefit of some of the help, such as the business rate reliefs?

[Steve Barclay]

One of the difficulties when people talk about extending the furlough is that those supplying particular sectors do not simply supply one sector; they usually supply across sectors. In the wider discussion about extending the furlough, not only is there the question of how long, because we do not know how long it will be until a vaccine arrives, but it is often unclear from those seeking an extension which sectors it would apply to and how it would apply to the supply chains of those sectors. The reality is that people do not simply supply one sector; supply chains reach across many sectors.

[Chris Bryant (Rhondda) (Lab)]

The Minister knows that the Rhondda has not just had to contend with coronavirus this year; we have had the worst flooding of any area in the whole of the UK—nearly a quarter of it was in one constituency—and we have had a major landslide from a coal tip. In February, the Prime Minister promised this House that the money would be “passported” from Westminster to Rhondda Cynon Taf to pay for the repair work. In June, the Prime Minister told me that the work had to be done and that he would be looking at making sure it happened. The Minister wrote to me in July to say that we should be applying to the reserve fund. I cannot underline more strongly how serious this is for the local community. We are one of the poorest communities in the whole of Europe. The local authority will be bankrupted if we do not get the money. There are families who are fearful that they are going to be flooded all over again, and many more who are even more worried that there will be another Aberfan. Please, please, please, just say the money is going to come.

[Steve Barclay]

The hon. Gentleman has raised this before and I discussed it with the Secretary of State for Wales. As a result of the hon. Gentleman’s question, I will ask for an urgent update to clarify with the Secretary of State what the latest is on that. Because of the emotion that I think everyone feels around the national tragedy of Aberfan, we recognise the specific issue in that regard, and I know that the Prime Minister is very sighted on it. To be fair, I think the issue has more aspects to it than simply the individual site that is of most concern; there is a wider discussion with the Welsh Government around flood protection and where that funding is, but I am very happy to follow up. Given that the hon. Gentleman has raised the issue before, let me follow it up, and I will write to him following today’s exchange.

[Mr David Jones (Clwyd West) (Con)]

The Welsh Government have imposed movement restrictions in four north Wales counties, an area where tourism and hospitality are the mainstay of the economy. That has had an immediate adverse effect on local businesses, some of which have closed, maybe never to open again. Can my right hon. Friend say whether the Welsh Government have been in touch with the Treasury to outline what financial measures they intend to put in place to compensate the businesses that have been so badly affected by this action?

[Steve Barclay]

I am not aware of any specific representations in respect of the individual case that my right hon. Friend refers to. The wider point I would make is that it is important across the United Kingdom as a whole that decisions on local lockdowns are shaped by the Joint Biosecurity Centre so that we have a consistency of approach that is led by the medical science, and then, on the basis of that, the Treasury can have discussions about any individual issues that arise from that advice from the Joint Biosecurity Centre.

[Claire Hanna (Belfast South) (SDLP)]

Last Friday, in an interview with the BBC, the Prime Minister said that additional resources would be available for Northern Ireland in the light of restrictions due to alarming covid numbers, which are now twice the UK average. There are local restrictions in place, hundreds of students are isolating, and businesses are struggling but have to keep the doors open to pay the bills. With furlough ending and an extra 89,000 universal credit claimants just in the second quarter of this year, people cannot afford to wait and see. When asked whether extra funds would be available, the Prime Minister said, “Absolutely.” When will those funds come?

[Steve Barclay]

We have provided significant funds to Northern Ireland—an additional £2.2 billion—to cope with the pressures of the pandemic, and that has enabled 300,000 jobs in Northern Ireland to be protected through the furlough scheme, along with an additional 78,000 jobs through the self-employed income support scheme. Indeed, the package of measures that my right hon. Friend the Chancellor announced in his winter plan applies in terms of additional support for Northern Ireland as it shapes its response to the pandemic.

[Sir Edward Leigh (Gainsborough) (Con)]

Does the Chief Secretary agree that the best way to help business is to let business get on with the job, as free as possible from Government control? Will he note that when the Treasury argues against further lockdowns for business, scores of Tory MPs and tens of thousands of businesses cheer it on? After all, to quote the Chancellor, is it not our “sacred” duty to “balance the books”? What is the point of solving this problem by borrowing money? Is that not the socialist way? What would be the point of a Conservative Government if we did that?

[Steve Barclay]

As a former Chair of the Public Accounts Committee, my right hon. Friend is quite right to focus on the importance of value for money and protecting the interests of the taxpayer. He knows me well enough to know that I share that sentiment. On our wider response, it is important that we get the right balance between responding to the virus and doing so in a way that is supportive to the economy. It is a false choice to see this as a choice between health and economics; they are clearly intertwined and we need to work together in shaping our response.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a horrific irony that while we risk 1980s levels of unemployment, the Chancellor was busy reminding his party conference that Tory values are old and timeless. I appreciate that not every job can be saved, but many more jobs can be saved by a proper extension of the furlough scheme and targeted support for aerospace, aviation, travel, tourism, hospitality, the night-time economy and those excluded to date. If the Treasury is not going to step up, does the Minister agree that the Scottish Government need borrowing powers so that they can provide targeted sector support and localised support where local restrictions might be needed for public health measures?

[Steve Barclay]

The slightly puzzling thing is that the hon. Gentleman does not seem to accept yes for an answer. When I was asked by the Scottish Government Finance Minister whether I would give further guarantees on Barnett consequentials, we agreed that, thereby enabling the Scottish Government to make spending commitments with that guarantee, yet that point is not recognised at all. The reality is that it is because of our broad shoulders and ability to act across the United Kingdom that we have been able to protect 930,000 jobs in Scotland at the peak in July, and 65,000 businesses in Scotland have benefited from our loan schemes. Our ability to act across the United Kingdom enables us to better protect jobs.

[Robert Largan (High Peak) (Con)]

I urge my right hon. Friend not to forget areas like the High Peak which, although not under local restrictions themselves, are impacted economically by the local restrictions next door in Greater Manchester. I wish to highlight specifically the events industry, which, if it is allowed to trade again, could be a crucible for economic recovery. The situation is imminent—lots of fantastic events, such as Buxton International Festival, are having to make decisions now about when their event can go ahead next year—so I urge my right hon. Friend to look urgently at measures for the industry.

[Steve Barclay]

My hon. Friend is quite right that the impact on business is not constrained to those areas most acutely affected by the virus; there is a wider displacement effect on businesses, including in neighbouring constituencies. We very much recognise that issue, which very much shaped the approach that the Chancellor set out in the winter plan, particularly in respect of the cash-flow pressures faced by those businesses. Together with the job support that he brought forward, the package recognises the very real pressures businesses face and will provide comfort as we go through the winter period.

[Sir George Howarth (Knowsley) (Lab) [V]]

In his response to my hon. Friend the Member for Liverpool, Riverside (Kim Johnson), the right hon. Gentleman suggested that he would be willing to work with MPs from all parties because of our concerns about the vulnerability of the hospitality, retail and live entertainment industry. In the light of that invitation, may I suggest that he agrees to meet local MPs from our city region, together with council leaders and the Metro Mayor, for a constructive discussion about how a comprehensive package for those sectors and others can be put in place as a matter of urgency?

[Steve Barclay]

As I think colleagues across the House would recognise, I have always been open to meeting MPs from all parties, and I am happy to give an undertaking to the right hon. Gentleman to meet MPs to discuss these issues. On the Liverpool city region, the point I was making in response to the previous question is that the request for £700 million that has come in will equate to an additional funding commitment of £23 billion. There is a responsibility on all of us, not just on Government, to have a view of the wider value for money of schemes, because £23 billion, in addition to the other packages, is a very significant amount.

[Ben Bradley (Mansfield) (Con) [V]]

Some of those worst affected by local lockdown measures will be our young people, who are left isolated or worse still, trapped in unhealthy home environments, and there will be long-term implications for local services that stem from that. Youth groups and organisations that can offer support need help, and the youth investment fund is vital to their sustainability. Will my right hon. Friend use his influence to end the delay to that funding and get that help to the young people who need it?

[Steve Barclay]

My hon. Friend is right that the youth investment fund is a very important allocation—£500 million was allocated in September 2019 under the fund. However, he speaks to a more fundamental point, which is that many of those most affected by covid’s economic consequences are the young, who tend to concentrate in areas such as hospitality that are most impacted. That is why the Chancellor has set out measures such as the £2 billion for the kickstart scheme, the tripling of traineeships, the £2,000 for apprentices and the doubling of work coaches. We recognise that it is not just the number of young people whose jobs go, but the length of time that they are out of the labour market that is absolutely crucial. Both of those are key areas of focus and I look forward to working with him in our response on them.

[Ben Lake (Ceredigion) (PC) [V]]

Further to the question asked by the hon. Member for High Peak (Robert Largan), what consideration have the Government given to the impact of local lockdowns on businesses and supply chains located beyond the lockdown areas? What support will be made available to businesses that are materially impacted by restrictions imposed elsewhere?

[Steve Barclay]

As I said to my hon. Friend the Member for High Peak (Robert Largan), it is absolutely valid for colleagues across the House to raise the wider impact. That is partly why we gave the guarantee on Barnett consequentials, which has meant that the Welsh Government have benefited to the tune of £4 billion. It is why we are engaging very closely with the Welsh Government, among others, on shaping our response, and why the Chancellor set out, through the winter plan, the package of additional measures, building on his plan for jobs—the £30 billion that was announced in July. We recognise that it is not only the areas most affected by lockdown that have pressures in terms of retaining jobs or cash flow challenges; the winter plan spoke to the issue much more widely across all parts of the United Kingdom.

--- Later in debate ---

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

There are 660 closed and shuttered nightclubs and live entertainment venues across the west midlands. I understand that they are not eligible for any help from the local restrictions support grant. Why not?

[Steve Barclay]

First, all businesses are able to benefit from the universal elements of the support package put in place by the Chancellor, whether that means loans, tax referrals or schemes such as the furlough. However, the hon. Gentleman is right that the nightclub sector is affected acutely, among all businesses affected. That is not just because it has been shut down from the start of the lockdown, but because it is very unclear when the end will be in sight, in terms of that sector and our ability to reopen. That is why the Chancellor has said, extremely reluctantly, that we are not in a position to save every single job. I think that around a third of nightclubs have repurposed by becoming pubs or reshaping their offer, but I absolutely accept that not all nightclubs will be able to do that. We are trying to target the very comprehensive measures of support on areas where jobs can be saved, but we recognise that not every single job will be saved.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

In my constituency of Stoke-on-Trent Central, more than 11,600 jobs have been protected so far through the furlough scheme and more than £50 million has been made available to businesses to bounce back through various loans and grants. Recently, Stoke-on-Trent was removed from the watchlist and avoided a local lockdown, thanks to prompt local action; however, we are geographically close to many local lockdown areas. I ask my right hon. Friend for reassurance that those businesses in Stoke-on-Trent most economically vulnerable to any local lockdown will continue to be able to access financial support.

[Steve Barclay]

I am very happy to reassure my hon. Friend that the package of support that the Chancellor set out in his winter plan will assist businesses in Stoke and elsewhere, bringing back jobs that are viable and supporting them in terms of their cash flow. Furlough has already seen more than half the jobs—from a peak of 8.9 million—come back, so it has served a key part of its purpose. I know that my hon. Friend is also a keen champion of the wider levelling up agenda, so as those businesses bounce back, it will also be important that we work together on that agenda, which I know areas such as Stoke should benefit from very strongly.

[Mr Clive Betts (Sheffield South East) (Lab)]

In the leisure and entertainment industry in my constituency, Cineworld shut its cinema, Hollywood Bowl has written to me about the problems that it has, wanting a further cut in VAT because of the impact of additional restrictions, Peller Agency has had virtually no work for any of its artists in live entertainment venues since March, and Central Travel and Linburg Travel were offered no help by the Government at all because, perversely, coach companies are not seen as part of the leisure industry. Those are effects on the constituency without additional restrictions; it can only get worse if additional restrictions come into play. Will the Government introduce a comprehensive range of measures to help the leisure and entertainment industry? Ultimately, if measures are not brought in, such products and offerings will not be available for all of us to enjoy once the restrictions are lifted.

[Steve Barclay]

I gently take issue with the point about coaches not having support. One of the areas where coach firms have been able to benefit hugely from our response, and to work with the Government, has been in school transport. We were able to secure the additional capacity that we needed in part through the willingness of coach companies to adapt as part of our response. It is not the case that coach companies have been unable to get any business during the pandemic.

On more comprehensive measures, the hon. Member is right that the cinema industry has been hit hard. We were all concerned to see the announcement from Cineworld at the weekend. Together with Odeon and Vue that is 75% of the market, but as he knows it is not simply down to one issue. With cinemas, there is the supply of films—the delay of some of the blockbuster films has had an impact—and consumer confidence. Attendance is significantly down compared with last year, and there is also the impact of the non-pharmaceutical interventions. There is not one single factor, but we continue to work with the cinema industry in shaping our response.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

Dominic Harrison, the director of public health for Blackburn and Darwen said that some of the more economically challenged boroughs are

“being placed into more restrictive control measures at an earlier point in their…case rate trajectory. This has the effect of exacerbating the economic inequality impacts of the virus in those areas.”

Why are some areas being treated differently from other areas, and can the Minister not see the need to have greater transparency and equity across the board?

[Steve Barclay]

The pace of those medically driven decisions is more, perhaps, a matter for my right hon. Friend the Secretary of State, who I know has been to the Chamber and answered such questions. I am willing to flag the hon. Gentleman’s concern about the transparency of that process.

[Robin Millar (Aberconwy) (Con)]

I thank the Minister for the generous and timely support that businesses and workers across Aberconwy have received during this pandemic. Sadly, the same businesses and workers, mainly in tourism, are struggling now under fresh local restrictions that have been brought in by the Welsh Government. I noted the Minister’s response to my right hon. Friend the Member for Clwyd West (Mr Jones). Will he press the Welsh Government, when they introduce local restrictions that are stricter than those in other parts of the UK, and do so at lower thresholds than in other parts of the UK, to also provide the funding that the businesses and workers struggling under them need?

[Steve Barclay]

As I said in reply to my right hon. Friend the Member for Clwyd West (Mr Jones), it is important that these decisions are shaped by the Joint Biosecurity Centre and that it takes a consistent approach throughout the United Kingdom. That helps not only with the consistency of support that can be offered to businesses across the UK, but with communication to constituents and the clarity of that message.

[Ms Angela Eagle (Wallasey) (Lab)]

I welcome the Minister’s agreeing with my right hon. Friend the Member for Knowsley (Sir George Howarth) to meet local MPs, local leaders and the Mayor to talk about what is happening in the Liverpool city region. The Minister will know that £7 million between nine different local authorities as extra money for the much more severe restrictions being imposed is not nearly enough, so will he promise to keep an open mind about the extra support we need in a region where 20% of our economy is the visitor offer, hospitality and tourism, and where 50,000 jobs and 4,000 businesses are at stake?

[Steve Barclay]

As I said to colleagues earlier, I am happy to meet Members of Parliament across the House, and I am happy to meet the hon. Lady, who brings considerable experience to these issues from her time in government. However, as I pointed out earlier, it is not the case that it is only £7 million of support. It is important to look at the wider package of support that has been offered, but of course we can discuss that in due course.

[Gary Sambrook (Birmingham, Northfield) (Con)]

There is no doubt that a number of businesses in Birmingham, Northfield and across Birmingham, especially in hospitality, would not exist now if it was not for the support packages put in place by the Government over the past several months. Will my right hon. Friend please commit to looking at as many ways as possible of supporting businesses, especially those affected by the local restrictions and the 10 pm curfew?

[Steve Barclay]

As I said in an earlier reply, the Chancellor was very clear yesterday that he continues to listen and to strive to be creative in our response. I refer my hon. Friend to the comprehensive package that has already been announced, including the winter plan that the Chancellor has announced, which provides considerable support to businesses through the furlough bonus, the jobs support scheme, the self-employed income support scheme, the tax deferrals, the loans and so on, all of which support businesses in his constituency.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP) [V]]

The fact is that more and more people are struggling just to put food on the table, as the Trussell Trust and others have highlighted, so with furlough being wound down, will the Government end the five-week wait for universal credit? Will they also make the £20 uplift permanent and extend it to legacy benefits? These measures are desperately needed.

[Steve Barclay]

We always keep these things under review. That was a temporary set of measures brought in by my right hon. Friend the Chancellor, but the hon. Member is right to point to the wider package of support that the Government offer. Following the package of support that was set out in March for individuals, public services and businesses, he will recall that the Chancellor has continued to revise that, with the most recent iteration being the winter plan that he announced in the Chamber a week or so ago.

[Mr Mark Harper (Forest of Dean) (Con)]

A theme of many of the questions, and of some of the Chief Secretary to the Treasury’s answers, is predicated on the assumption that some of these economic support measures will be needed only for a short period. My right hon. Friend referred to the potential for a vaccine to solve the problem. Is it the Treasury’s assumption that these measures will be needed only for a short period and that a vaccine will come along and solve everything, or is it more likely, as I believe, that we will see permanent changes to our economy that will require us to accept that a significant economic transformation is required?

[Steve Barclay]

The significant fiscal measures that we have put in place will clearly have longer-term consequences for the public finances. The Chancellor has been quite clear about that in terms of our response to the future fiscal event. In terms of the timing of a vaccine, as the Prime Minister and the Chancellor have set out, things have changed since March, when there was perhaps a sense initially that these measures would be needed for a shorter period, and it is now clear that we will be living with the virus for a longer period—at least for a further six months. I know, however, that through the work of the Secretary of State for Business, Energy and Industrial Strategy, a huge amount of work is going on in the vaccines taskforce, because that is clearly the best way to limit the longer-term damage. However, we cannot guarantee the timing of when any vaccine would arrive.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab) [V]]

The Minister will no doubt appreciate just how precarious the future of many businesses is and how desperately worried they are that they could face further restrictions and more local lockdowns. Further to the question from my hon. Friend the Member for Lancaster and Fleetwood (Cat Smith), will the Minister please outline the additional and specific support that businesses that do not have to close but are facing significantly lower demand can expect to receive?

[Steve Barclay]

One of most important areas of support is avoiding, if at all possible, businesses closing in the first place. That is why, in response to the measures brought forward by the Secretary of State for Health, we have drawn the balance between businesses being open for the majority of the evening and addressing the risk—outlined by the chief medical officer and others—that social distancing tends to be weaker later in the evening. This addresses the concerns of the Department of Health about the increased risk, while protecting the ability of businesses to stay open. It is important that we keep this measure under review and ensure that the modelling and the data evolve so that we get the balance right for businesses.

[Jack Brereton (Stoke-on-Trent South) (Con)]

Many of the areas that have been hit hardest by covid are those that relate most to the Government’s levelling-up agenda and that, like Stoke-on-Trent, will be vital for unlocking productivity. Will my right hon. Friend prioritise ensuring that we continue to see a refocusing of investment into these areas as we build a stronger recovery, so that no part of our country is left behind again?

[Steve Barclay]

There are few stronger champions of the levelling-up agenda in this House than my hon. Friend, and rightly so. I share his determination to ensure that our levelling-up agenda speaks to the people of Stoke and to many other places across the United Kingdom. I look forward to continuing conversations with him as we take that important work forward.

[Rachel Hopkins (Luton South) (Lab)]

From 1 November, the job support scheme will only be available to firms that can offer their staff at least a third of their usual working hours. For businesses forced to close as a result of local restrictions, that will not be possible. What do the Government suggest such businesses do in these circumstances to retain their staff who are skilled and who have been trained by these businesses?

[Steve Barclay]

As we covered earlier, there are specific measures for areas with local lockdowns, such as the £1,500 support for businesses that are closed for three weeks or more. The Chancellor announced a package of measures in the winter plan, including tax deferrals, loans and other cash-flow support, alongside the self-employed income support and job support that he announced in the same statement.

[Mr Speaker]

Let us head up to Harrow so that Bob Blackman can glide his question in.

[Bob Blackman (Harrow East) (Con) [V]]

Thank you, ground control.

I thank my right hon. Friend for explaining the current position. He will know that we are currently experiencing an increase in the infection rate in virtually every borough in London. What we do not know is whether lockdowns or further restrictions will take place covering the whole of London or on a borough-by-borough basis. In either case, there will be a huge impact on business, so will my right hon. Friend set out what measures will be in place to support London and each London borough in the event of local lockdowns or a London-wide lockdown?

[Steve Barclay]

As I have said in reply to a number of colleagues, we will continue to listen and evaluate the circumstances, including as applies to London. The Chancellor has set out a comprehensive package of support that applies to businesses within the London community, assisting them in their ability to retain what is most prized within a business, which is the talent of its own staff, and in addressing particular cash-flow pressure. We responded very much to the feedback that we have received from business leaders, including business leaders in London, as the winter package was shaped.

[Catherine West (Hornsey and Wood Green) (Lab)]

The International Monetary Fund has encouraged Governments to spend on infrastructure. In London, the infrastructure is the west end and the suburban theatres. What urgent plan will the Government put in place to protect the workers—whether the technicians, the actors, the divas or the stars—to keep our desperately loved theatre going?

[Steve Barclay]

On the specific point about the theatre, it is sector championed by my right hon. Friend the Secretary of State for Culture, Media and Sport and I referred earlier to the £1.57 billion package that the Chancellor has set out. I agree with the hon. Lady about the importance of infrastructure as a whole. Theatre is one aspect, but there is a much wider piece that includes Crossrail, High Speed 2, the acceleration of our road schemes, and broadband in particular to areas of poor connectivity. There is a huge agenda for infrastructure, and delivering that at pace is a key focus of the Chancellor and the Treasury team.

[Matt Vickers (Stockton South) (Con)]

The hospitality sector has benefited from an incredible and innovative package of support, and I hope that will continue in a targeted way to mitigate the impact of local lockdown. But if we do not rethink the 10 pm curfew, we could see bars, pubs, restaurants and breweries call last orders for the final time. Will the Government back Britain’s boozers and breweries and reconsider their approach to the 10 pm curfew?

[Steve Barclay]

My hon. Friend is absolutely right that it is important that we act in a targeted way both in terms of our economic measures and in our health response to the pandemic. It is about getting that balance right.

On the 10 pm curfew, it is worth reflecting on the fact that we are not alone in that. The Netherlands and parts of Spain, such as Madrid, have taken a similar approach, but it is all about getting the balance right and ensuring that we act in a targeted way, as my hon. Friend suggests.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

Live music professionals in my constituency saw an average income drop of 97.5% during the initial lockdown. If further local restrictions come into force, the situation is likely to become even bleaker. Given that the sector employs 589,000 people nationally and that their skills are in demand worldwide, will the Chief Secretary extend the remit of the £1.57 billion arts support package to cover live music?

[Steve Barclay]

We keep all packages under review but, to address the very legitimate point that the hon. Lady raises about particular impacts within the economy, we have extended the self-employed income support scheme as one of the vehicles of assisting many of her constituents and those affected particularly in the arts. It is the case that certain sectors have been acutely hit and where we are not able to save every job in a sector, it is extremely important that we are able to get the support, the skills and the training package in place to people from such sectors in the wider economy.

[Dehenna Davison (Bishop Auckland) (Con)]

We can all agree that the Government’s economic support has been a lifeline for millions of hard-working people but in local lockdown areas, such as those across the north-east, hospitality businesses are really struggling with restrictions such as the 10 pm curfew and households not being able to meet for a meal and a pint across Bishop Auckland. May I urge my right hon. Friend to look at how he can offer additional economic and financial support? Some of these businesses have seen their takings drop through no fault of their own.

[Steve Barclay]

I know that the 10 pm curfew is an issue that a number of colleagues across the House have raised. As I said a moment ago, it is about getting the balance right. We have striven to ensure that venues are able to continue to be open most of the evening rather than, as we saw in the initial lockdown, having to close. It is about protecting the majority of the evening and getting the balance right with the later night socialising that the chief medical officer and others are most concerned about in terms of the risk to public health. It is something that we continue to keep under review and learn from other countries around the world. As I have said, other countries are addressing similar issues.

[Mary Kelly Foy (City of Durham) (Lab)]

Last week, one of my constituents who owns a bridal store contacted me in desperation. Because of the coronavirus restrictions in the north-east, brides-to-be can no longer take a relative or friend to their dress-fitting appointments, a special time for any bride. Ultimately, this has led to numerous cancellations. To echo my hon. Friends, will the Minister commit to providing support for businesses, like my constituent’s, or will the Government allow them to fail through no fault of the owner?

[Steve Barclay]

This is one of those sectors that has been hit hard both emotionally and economically. One can see the human distress and the impact of the virus in such cases, at what is a pivotal moment in people’s lives, and also the economic distress. It is certainly not the case that this is about the Government letting businesses fail in that regard. The consequences of the pandemic hit particular sectors more acutely than others. We have put in place, as I said earlier, a comprehensive package of support, but it is also the case that not every single job will be protected. Where that is the case, we need to work with people to ensure that we are able to support them back into the labour market.

[Stephen Hammond (Wimbledon) (Con)]

I listened very carefully to my right hon. Friend’s response to the question of my hon. Friend the Member for Harrow East (Bob Blackman) about restrictions in London. I have heard from a lot of small and medium-sized enterprises in Wimbledon that the business rate support grant—the relief that the Government made available—was the lifeline that has kept them going. If there are further restrictions to be imposed, may I ask him to look again at that as the way to help SMEs, a vital part of our economy, to keep going?

[Steve Barclay]

My hon. Friend speaks with great authority when it comes to the business community. I know that he engages extensively with it and understands the issues closely. I am very happy to relay the issue that he raises to my right hon Friend the Secretary of State. As I have said on a number of occasions, we have put in place a comprehensive package of support. It will not address every job, and the Chancellor has been honest with the public in that regard, but it is right that we keep the situation under review. I will take my hon. Friend’s representations on that issue.

[Judith Cummins (Bradford South) (Lab)]

With the Health Secretary reportedly considering further restrictions on hospitality in areas of local restrictions and with 19,000 people in Bradford still on the furlough scheme that comes to an end in just 25 days, will the Treasury bring in a local furlough scheme to save those very viable jobs, which are now under threat as a direct result of this Government’s decisions?

[Steve Barclay]

The hon. Lady raises a legitimate concern, but I do not see the panacea to that being an extended furlough for an indefinite period. What has never been clear to me from those who seek to extend the furlough indefinitely is for how long they would extend it, and how many sectors would be included. We have taken a different approach, as the Chancellor has set out, through the winter plan, the job support scheme and the self-employed income support scheme to support those jobs that we are able to support. I say respectfully to the hon. Lady that I do not agree that the panacea to this would be an open-ended furlough.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

I think there is a growing understanding that we will be wrestling with this crisis for perhaps many more months to come—far longer than any of us had perhaps hoped at the beginning of the pandemic. Does my right hon. Friend agree that it is essential we have a longer-term framework in place—a framework of support for families and for businesses through periods of rolling on-off lockdowns and through periods of self-isolation and sickness—and that, underneath that framework of support for society and for business, we need a strong safety net of social security, which is the hallmark of a decent society?

[Steve Barclay]

My right hon. Friend is absolutely right that our response to the pandemic needs to evolve as our understanding of the disease improves but also as we get a better understanding of how long we will live with the consequences of the pandemic. That is at the heart of the Chancellor’s strategy. In the initial phase in March, we locked down to protect the NHS to build our capacity. There was a shift to the second phase in July, with the plan for jobs and more recently with the winter plan as we look to move people from being furloughed at home to being brought back into the workplace. The more tailored approach of which he speaks is shaped by things such as track and trace and the significant funding that the Treasury has put into that programme in order, as he rightly says, that we can be very targeted as we deal with this in the months ahead.

[Katherine Fletcher (South Ribble) (Con)]

In areas of Lancashire—in South Ribble, Chorley and West Lancashire—that I represent, I speak to businesses and they get that we are trying to save lives. The businesses they are in are people businesses—they are in events, weddings and bands—and they will put people first, but they are looking at three winters. They would not be here without the coronavirus business interruption loans, the bounce back loans and the furlough. But can the Minister assure me that he is giving every consideration to ensure that those businesses are still here when we are past this awful virus?

[Steve Barclay]

The Chancellor, through measures such as the extension of the loans to which my hon. Friend refers, and other cash flow measures such as tax deferrals, is seeking to support those businesses, but we do face living with the virus for a longer period. That is why, as our approach evolves, we need to be targeted, so that we get the balance right, not just between the health measures and the economy, but within the economy, where we need to get the balance right between wider fiscal sustainability and the support we are able to offer specific sectors.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The speculation in the media today that the Scottish Government are about to introduce greater restrictions in Scotland just as we go into the October school holiday is causing tremendous concern to businesses in my constituency, especially those working in the visitor economy. What comfort is the Chief Secretary able to give them that, at this last opportunity they have for a bit of a boost before the third winter comes, they will be protected and that he will work with the Scottish Government to ensure that they get the support they need?

[Steve Barclay]

The right hon. Gentleman raises an important point. The response to the pandemic is helped if across the UK we take a co-ordinated approach. For example, Scotland’s chief medical officer sits alongside the CMOs from the rest of the UK; a huge amount of joint work is undertaken through the Joint Biosecurity Centre; and I engage regularly with counterparts in the Scottish Government. He raises the important point that there is concern in the business community and it is important that a consistent message across the UK, followed by the CMOs, is applied.