Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he will take to support (a) employers and (b) furloughed employees in the events and hospitality industry who are in financial difficulty.

The Government recognises the extreme disruption the necessary actions to combat Covid-19 are having on sectors like events and hospitality.

We have already announced considerable and unprecedented support for businesses and individuals through the national restrictions.

Businesses forced to close can claim grants of up to £3,000 per month (worth over £1 billion per month) through the Local Restrictions Support Grant (Closed). Any business in England forced to close due to national or local restrictions can claim grants, via their local authority, of up to £3,000 per month, per business premises, depending on rateable value.

In addition, on 5th January, the Government announced an extra £4.6 billion to protect jobs and support affected businesses as restrictions get tougher. Businesses forced to close can claim a one-off grant of up to £9,000. This is in addition to the monthly closed grant amounts above. Local authorities (in England) will also be given an additional £500 million discretionary funding to support their local businesses. This builds on the £1.1 billion discretionary funding (worth £20 per head of population) which local authorities in England have already received to support their local economies and help businesses impacted

The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of April. This provides a substantial grant for employers to cover 80% of the wages of their employees. As of 13 December, CJRS has support 9.9 million jobs at the cost of roughly £46.4bn.

Furthermore, individuals who are furloughed, become unemployed, or anyone who sees a fall in their earnings, may become eligible for support through the welfare system, notably, Universal Credit. We have announced significant temporary extra support worth £7.4bn in 2020-21 for families who rely on the safety net of the welfare system. This includes a £20 per week increase to the 2020-21 UC standard allowance, a suspension of the Minimum Income Floor for self-employed UC claimants, and an increase in UC and Housing Benefit Local Housing Allowance rates so they cover the lowest third of local rents

We will continue to monitor the impact of government support on public services, businesses, individuals and sectors, including the events and hospitality sector, as we respond to this pandemic. But we must recognise that it will not be possible to preserve every job or business indefinitely, nor stand in the way of the economy adapting and people finding new jobs or starting new businesses.