Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the level of financial pressure experienced during the covid-19 lockdown announced in January 2021; and what assessment he has made of the potential merits of a directors income support scheme based on company trading profits.

The Government recognises that many taxpayers have faced extremely difficult circumstances throughout this crisis.

The Government welcomes constructive proposals from stakeholders to improve the design of the SEISS, including the suggestion for a Directors Income Support Scheme (DISS) from the Federation of Small Businesses, ForgottenLtd, Re Legal Consulting Ltd, and ACCA UK. This proposal aims to provide a new system for company directors, based on reported profits. The Government has considered this proposal in detail and given feedback to its sponsors.

Company owner managers could be eligible for other elements of the support available, including the Coronavirus Job Retention Scheme (in respect of their salary but not their dividends), Bounce Back loans, tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays, and other business support grants. More information about the full range of business support measures is available at: www.businesssupport.gov.uk/coronavirus-business-support/.