Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to provide financial support to company directors who do not qualify for assistance under the CJRS and the SEISS; and what recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the effect of the exclusion of company directors from these schemes.

The Government prioritised delivering support to as many people as possible, as quickly as possible while guarding against the risk of fraud or abuse. The Government takes an evidence-based approach when developing policy. This meant making difficult decisions, and the Chancellor has acknowledged that it has not been possible to support everyone as they would want.

The CJRS and SEISS are only two elements of a substantial package of support for businesses and individuals. There is access to affordable, Government-backed finance through the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBLS) for large firms, along with the Bounce Back Loan Scheme (BBL) for small and micro enterprises. Over £65 billion (as of 15 November) has been dispensed through these schemes.

At the Winter Economy Plan, the Government also announced that it would give businesses which deferred VAT due in March to June 2020 the option to spread their payments over the financial year 2021-2022 under the VAT deferral ‘New Payment Scheme’. Over half a million businesses deferred VAT payments, a cash injection of £30 billion into the UK economy when it needed it most.

The Government has also implemented a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element. The £20 per week uplift is one part of a package of temporary welfare measures, which also includes increases to the Local Housing Allowance rates for Housing Benefit and Universal Credit, which mean over one million households who rent privately will gain an average of £600 per year.