Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what further support he plans to make available to small businesses that have so far been ineligible for financial support during the covid-19 outbreak; and if he will amend the eligibility criteria to include previously ineligible businesses.

Since the beginning of this crisis, the Government has put in place an unprecedented package of support for businesses worth over £280 billion. These schemes were designed with two principles in mind: the need to target support at those who need it most, and the need to protect the exchequer against error, fraud, and abuse. This is because the Government needs to balance its commitment to support people through the pandemic, with its duty to protect the taxpayer to ensure that public funds are managed responsibly.

The Government has acknowledged that it has not been possible to support everyone in the way they might want. However, businesses not eligible for certain forms of support may still be able to benefit from government-backed loans and general and sector-specific grants.

In January, all local authorities in England received a top-up worth a total of £500m to their allocation from the Additional Restrictions Grant (ARG), which has already provided local authorities with £1.1 billion. This funding will ensure that local authorities can make discretionary grants to businesses which are not eligible for other forms of support, but which are nonetheless experiencing a severe impact on their business due to the national lockdown. We encourage businesses in this position to contact their local authority to discuss what support may be available.

The Treasury is working intensively with employers, delivery partners, industry groups and other Government departments to understand the impacts of COVID-19 and specific challenges in the economy. We will continue to take a flexible approach and keep all policies under review to explore how we can better support different groups and ensure that the support provided is right for the economy as a whole over the coming months.