Asked by: Alan Campbell (Labour - Tynemouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will increase access to funding for the supply chain of the hospitality sector during the covid-19 outbreak potentially through invoice factoring to ease cash flow as suppliers commit resources to hospitality restart.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that businesses within the hospitality supply chain have been acutely disrupted by recent necessary restrictions to hospitality businesses. The Government has acted to deliver support to these businesses, and ease cash flow problems for businesses through:
In addition to this wide-ranging package of support, we have also ensured businesses can access affordable, Government backed finance through the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBLS) for larger firms and the Bounce Back Loan Scheme (BBL) for small and micro enterprises. Under both CBILS and BBLS, invoice finance facilities in addition to term loans, overdrafts, and asset financing facilities are available to eligible businesses. Businesses will also be given until the end of March to access the BBLS, CBILS, and the CLBLS. ‘Pay as You Grow’ options are also available for businesses which have taken out loans through BBLS or CBILS, giving a longer repayment period and allowing further flexibility on repayments.
These businesses have and will continue to benefit directly from Government support schemes, and indirectly from the support offered to the pubs and restaurants they supply, protecting jobs in the industry. In the meantime, the Government will continue to engage with the sector and keep under review the case for further interventions, including measures to ease cash flow problems.
Asked by: Stephen Farry (Alliance - North Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of providing bridging finance for employers to cover ongoing payment of national insurance contributions and pension costs for employees on furlough during the covid-19 outbreak in order to safeguard jobs during periods of business closure.
Answered by Jesse Norman
Under the extension from November, employer contributions for the Coronavirus Job Retention Scheme (CJRS) have returned to the level they were in August, which is lower than the previous level in September and October. Employer National Insurance Contributions (NICs) and pension contributions are the only required contributions under the extension to the CJRS. For an average claim, this accounts for just 5 per cent of total employment costs or £70 per employee per month. Many small employers can benefit from the Employment Allowance for support with their NICs bill, allowing eligible employers to reduce their annual National Insurance liability by up to £4,000.
The CJRS is only one element of a comprehensive package of support for businesses. This includes 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. As of 13 December, these schemes have already provided over £68bn in guaranteed loans and provide vital support across all sectors of the UK economy for businesses who have been impacted by coronavirus.
We have guaranteed the devolved administrations an additional £16.8 billion of resource funding this year to help them respond to coronavirus. This means at least £3bn of additional funding for the Northern Ireland Executive.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the (a) adequacy and (b) effectiveness of Government support for hospitality businesses during the covid-19 outbreak; and whether businesses that were ineligible for Government covid-19 support during the first national lockdown may be eligible for support retrospectively.
Answered by Kemi Badenoch - President of the Board of Trade
The Government understands that this is a very challenging time for the UK’s hospitality sector, and it recognises that the hospitality sector has been disproportionately impacted by the pandemic. Throughout the crisis the Government’s priority has been to protect lives and livelihoods. The Government has acted to deliver support to this sector through:
These measures have kept people in work, supported their incomes and supported businesses, delivering one of the most generous and comprehensive packages of support globally. However, as measures to control the virus change, it is right that Government support should also evolve. The Government keeps all policies under review, and will continue to work with businesses and representative groups to inform our efforts to support the hospitality sector.
Asked by: Holly Mumby-Croft (Conservative - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of Tier 3 covid-19 lockdown restrictions on hospitality businesses; and whether he has made an assessment of the potential merits of providing additional support to hospitality businesses in Tier 3 areas.
Answered by Kemi Badenoch - President of the Board of Trade
The Government understands that this is a very challenging time for the UK’s hospitality sector, and it recognises that the hospitality sector has been disproportionately impacted by the pandemic. Throughout the crisis the Government’s priority has been to protect lives and livelihoods. The Government has acted to deliver support to this sector through:
These measures have kept people in work, supported their incomes and supported businesses, delivering one of the most generous and comprehensive packages of support globally. However, as measures to control the virus change, it is right that Government support should also evolve. The Government keeps all policies under review, and will continue to work with businesses and representative groups to inform our efforts to support the hospitality sector.
Asked by: Luke Evans (Conservative - Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to provide additional support to the hospitality and night time sector during the second wave of the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government understands that this is a very challenging time for the UK’s hospitality sector and night-time businesses, and recognises that the hospitality sector has been significantly impacted by the pandemic. Throughout the crisis the Government’s priority has been to protect lives and livelihoods. The Government is delivering support to this sector and these businesses through:
The Government is continuing to collect evidence on the impact of the pandemic on the hospitality industry and work with businesses and representative groups to ensure that support provided is right for this industry and the economy as a whole.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to support the hospitality sector during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government understands that this is a very challenging time for the UK’s hospitality sector and night-time businesses, and recognises that the hospitality sector has been significantly impacted by the pandemic. Throughout the crisis the Government’s priority has been to protect lives and livelihoods. The Government is delivering support to this sector and these businesses through:
The Government is continuing to collect evidence on the impact of the pandemic on the hospitality industry and work with businesses and representative groups to ensure that support provided is right for this industry and the economy as a whole.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the need for support during the January 2021 covid-19 lockdown for (a) breweries and (b) other businesses within the hospitality supply chain that do not qualify for covid-19 Government grants.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that breweries, and other businesses within the hospitality supply chain have been acutely disrupted by recent necessary restrictions to hospitality businesses. Throughout the crisis the Government’s priority has been to protect lives and livelihoods. The Government has acted to deliver support to these businesses through:
Breweries have and will continue to benefit directly from Government support schemes, and indirectly from the support offered to the pubs and restaurants they supply, protecting jobs in the industry. The Government is continuing to collect evidence on the impact of the pandemic on the sector and to work with businesses and representative groups to inform our efforts to support this sector.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the level of financial support required by non-pub businesses affected by the hospitality curfew during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
In December, the 10pm closing time for hospitality was modified to last orders at 10pm and closing time at 11pm. This was to allow customers to depart gradually and provide greater flexibility for hospitality venues. The Government recognises that non-pub businesses and restaurants, would have been impacted by these and other restrictions. This is why the Government has acted to deliver support to these businesses through:
The Government is continuing to collect evidence on the impact of the pandemic on the sector and to work with businesses and representative groups to inform our efforts to support it.
Asked by: Lord Dholakia (Liberal Democrat - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what assessment they have made of the benefits the English water retail market has delivered for SMEs; and how many SMEs switched retailers in (1) 2018, and (2) 2019.
Answered by Lord Goldsmith of Richmond Park
Since market opening, Ofwat has published annual reports on the business retail market, including with a focus on customer outcomes and benefits delivered to customers, including SME customers – see:
Its most recent report, on the third year of the market (2019-20) noted that just over half (54%) of small/medium SMEs (10-249 employees), and 58% of micro-businesses (0-9 employees) are aware they can choose their retailer. The majority (91%) of all business customers who had switched retailer or renegotiated a new deal with their existing retailer in the 12 months to spring 2020 reported that they had received some form of benefit as a result of switching or re-negotiating.
Concerning switching rates, around 3.1% of small/medium SMEs (10-249 employees) and 4% of micro-businesses (0-9 employees) switched retailer or renegotiated a new deal with their existing retailer in the 12 months to spring 2020, compared to 6.2% (small/medium SMEs) and 3.6% (micro-businesses) in the 12 months to spring 2019.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to encourage people to support local businesses in the run up to Christmas.
Answered by Paul Scully
The Government is committed to supporting local businesses during this crucial trading period.
To support retailers in tiers 1-3, we have eased planning rules to allow shops to be open for longer Monday to Saturday from 2 December, giving consumers greater flexibility to choose when they shop. These measures will run through the January sales.
Retailers in tier 4 can continue to offer click and collect, and delivery services which will help businesses keep trading.
We have modified the closing time for hospitality to last orders at 10pm and closing time at 11pm. This allows customers to depart gradually and provides greater flexibility.
The excellent Small Business Saturday UK event took place on the 5 December and was a great way to celebrate small and micro businesses across the UK, raise awareness of the importance of SME’s to our local communities and help them get back on their feet.
My ministerial colleagues across Government and I were delighted to be able to take part on the day itself to champion our small businesses and draw attention to the brilliant campaign.