Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps he is taking to support the wholesale sector and safeguard food supplies to schools, care homes, hospitals and other critical public service infrastructure.
Answered by Victoria Prentis - Attorney General
The Chancellor of the Exchequer has announced a range of temporary financial support to the wholesale sector, a key supplier of food to critical public service organisations, to ensure its ongoing viability through this difficult period. Wholesalers are eligible for a number of schemes, including: the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Job Retention Scheme to help keep millions of people in employment and the Discretionary Grant Fund for small and micro businesses that are not eligible for other grant schemes.
In addition to this, Defra has been working with the charity sector through the Food Charity Grant Scheme which gives charities up to £100,000 in grant funding to purchase food to support the most economically vulnerable. Through this scheme, Defra has encouraged charities that do not have established suppliers to purchase stock from wholesalers and local producers, both to support the sector and to reduce waste.
A range of Government departments hold responsibility for public sector food provision for specific sectors including schools, care homes, hospitals and prisons. My department is working closely with officials from the Department for Education, the Department of Health and Social Care, the Ministry of Justice and the Ministry of Defence to support them in making arrangements with their suppliers to ensure food supply continues to these public sector institutions.
Asked by: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans the Government has to provide long-term support to the food and drink wholesale sector.
Answered by Kemi Badenoch - President of the Board of Trade
The Government`s priority is to support the economy through the crisis; keep as many people as possible in their existing jobs, support viable businesses and protect the incomes of the most vulnerable. That is why the Government has announced unprecedented support for business and workers to protect them against the current economic emergency including almost £300 billion of guarantees – equivalent to 15% of UK GDP.
Food and drink wholesale distributors continue to have access to the Government’s unprecedented package of support for business, including the Coronavirus Job Retention Scheme (CJRS) and the four government-backed loan schemes for firms of all sizes. The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible and how to apply - https://www.gov.uk/business-coronavirus-support-finder.
On 11 May the Government published its COVID-19 recovery strategy which sets out our plan for moving to the next phase of our response. Going forward, as the economy opens up, our energies will focus on supporting the recovery. The Government will continue to closely monitor the impacts of the support packages and continue to engage with businesses and representative groups in the wholesale sector. Any announcements on the next stage of our economic response will be made at the appropriate time.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the Scotland Office:
To ask the Secretary of State for Scotland, what discussions he has had with the Chancellor for the Exchequer on support for the wholesale food and drink sector in Scotland.
Answered by Alister Jack - Secretary of State for Scotland
I am in regular contact with the Chancellor for the Exchequer and all members of the Cabinet to discuss how best the UK Government can support sectors of the Scottish economy, including the wholesale food and drink sector.
At the last budget delivered in March I was pleased to see the Scotch whisky industry getting a welcome boost, with a freeze on spirits and a commitment to a review of alcohol duty, and £10 million help to develop green technology. I was also extremely happy to see £1 million investment in promoting Scottish produce to overseas markets.
The wholesale food and drink sector in Scotland has also been considered as part of the UK Government’s broader Covid-19 support. This included the support offered through the Job Retention Scheme and the Self-Employment Income Support Scheme which have protected the incomes of almost 800,000 people in Scotland – more than a quarter of the workforce. This is in addition to the various loans and guarantees to help UK businesses survive the economic fallout from coronavirus. However, our response to Covid-19 must be UK-wide and that’s why we have announced over £7 billion of additional funding to the devolved administrations to support people, business and public services in Scotland, Wales and Northern Ireland. This means £3.8 billion for the Scottish Government, £2.2 billion for the Welsh Government and £1.2 billion for the Northern Ireland Executive.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what policy changes he plans to make in response to the findings of a Federation of Wholesale Distributors survey that (a) 50 per cent of the 150 food and drink wholesale businesses surveyed, all of which have a turnover of £45 million or lower, are in danger of going into liquidation in the next three months to a year, (b) 70 per cent of those respondents supply food and drink to schools, care homes, hospitals and (c) £270 million worth of public sector contracts are at risk without urgent financial support; and if he will make a statement.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has announced unprecedented support for business and workers to protect them against the current economic emergency including almost £300 billion of guarantees – equivalent to 15% of UK GDP. Local Authorities (LAs) can choose to make discretionary grants to businesses in supply chains, like wholesale distributors, if they feel there is a particular local economic need. The Government has allocated up to £617 million to LAs to enable them to give discretionary grants to businesses in this situation. LAs may choose to focus payments on those priority groups which are most relevant to their local areas or to businesses outside of these priority groups, so long as the business was trading on 11th March, and has not received any other cash grant funded by central Government.
Wholesale distributors continue to have access to other elements of the Government’s unprecedented package of support for business, including the Coronavirus Job Retention Scheme (CJRS) and the four government-backed loan schemes for firms of all sizes. The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible and how to apply - https://www.gov.uk/business-coronavirus-support-finder.
On 11 May the Government published its COVID-19 recovery strategy which sets out our plan for moving to the next phase of our response. The strategy sets out a cautious roadmap for easing existing measures in a safe and measured way. On 15 June the non-essential retail sector reopened. The roadmap will be kept constantly under review, and we will continue to work hard to support business and workers as the situation evolves.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason his Department has not allocated financial support to food and drink wholesalers; whether food and drink wholesalers are classified as part of the same supply chain as the supermarkets which they supply; and if he will make it his policy to extend (a) business rates relief and (b) the Hospitality, Retail and Leisure Grant, to the food and drink wholesale sector.
Answered by Jesse Norman
The Government has provided enhanced support through business rates relief and business grants to businesses occupying properties used for retail, hospitality and leisure given the direct and acute impacts of the COVID-19 pandemic on those sectors.
The Ministry of Housing, Communities and Local Government has published guidance for Local Authorities (LAs) in England on eligible properties for the business rates relief. It is for LAs to determine eligibility for reliefs, having regard to guidance issued by the Government.
LAs can choose to make discretionary grants to businesses in wider supply chains, like the wholesale food and drink sector, if the LA considers there is a particular local economic need.
Businesses that are not eligible for business rates relief or business grants can still benefit from the wider business and employment support package the Government has made available.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the application of business rates relief to food and drink wholesalers who supply hospitals, schools, care homes and the hospitality industry.
Answered by Jesse Norman
The Government has provided enhanced support through business rates relief to businesses occupying properties used for retail, hospitality and leisure given the direct and acute impacts of the COVID-19 pandemic on those sectors.
The Ministry of Housing, Communities and Local Government has published guidance for local authorities on eligible properties. As set out in the guidance, support is targeted at premises that are wholly or mainly being used as shops, restaurants, cafes, drinking establishments, cinemas and live music venues; for assembly and leisure; or as hotels, guest and boarding premises and self-catering accommodation. It is for local authorities to determine eligibility for reliefs, having regard to guidance issued by the Government.
A range of further measures to support all businesses, including those not eligible for the business rates holiday, such as wholesalers, has also been made available.
Asked by: Neil Parish (Conservative - Tiverton and Honiton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of implications for his policies of the conclusions of the Federation of Wholesale Distributors survey that (a) 50 per cent of businesses surveyed that have a turnover of £45 million or lower, are in danger of going into liquidation in the next three months to a year, (b) 70 per cent of respondents supply to schools, care homes, hospitals and (c) £270 million worth of public sector contracts are at risk; and if he will make a statement.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has announced unprecedented support for business and workers to protect them against the current economic emergency including almost £300 billion of guarantees – equivalent to 15% of UK GDP. Local Authorities (LAs) can choose to make discretionary grants to businesses in supply chains, like wholesale distributors, if they feel there is a particular local economic need. The Government has allocated up to £617 million to LAs to enable them to give discretionary grants to businesses in this situation. LAs may choose to focus payments on those priority groups which are most relevant to their local areas or to businesses outside of these priority groups, so long as the business was trading on 11th March, and has not received any other cash grant funded by central Government.
Wholesale distributors can also benefit from other elements of the Government’s unprecedented package of support for business, including the Coronavirus Job Retention Scheme (CJRS) and the four government-backed loan schemes for firms of all sizes. The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.gov.uk/business-coronavirus-support-finder.
On 11 May the Government published its COVID-19 recovery strategy which sets out our plan for moving to the next phase of our response. The strategy sets out a cautious roadmap for easing existing measures in a safe and measured way. Our aim is that all non-essential retail will be able to reopen by 15 June if the Government’s five tests are met and they follow the COVID-19 secure guidelines. The roadmap will be kept constantly under review, and we will continue to work hard to support business and workers as the situation evolves. The Department for Transport is engaging with the haulage industry to understand the impact of COVID-19 on the sector.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of extending the (a) Business Rates Relief and (b) Hospitality, Retail and Leisure Grant to the food and drink wholesale sector; and if he will make a statement.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that this is a very challenging time for businesses in a wide variety of sectors.
Businesses occupying properties for retail, hospitality or leisure purposes are likely to have been particularly affected by COVID-19 due to their reliance on customer footfall. The Government has provided enhanced support to these businesses through a twelve-month business rates holiday. The Government also recognises that small businesses in the retail, hospitality and leisure sectors are less likely than larger businesses to have sufficient cash reserves to meet their high fixed property-related costs. To help these small businesses, the Government created the Retail, Hospitality and Leisure Grant Fund, which gives grants of up to £25,000 to businesses which occupy properties used for these purposes with a rateable value below £51,000.
Local Authorities (LAs) can choose to make discretionary grants to businesses in retail, hospitality and leisure supply chains, like the wholesale food and drink sector, if they feel there is a particular local economic need. The Government has allocated up to an additional £617 million to LAs to enable them to give discretionary grants. While food and drink wholesalers are not one of the priority groups which Government has asked LAs to focus on, LAs may choose to make payments to businesses outside of these priority groups, so long as the business was trading on 11th March, and has not received any other cash grant funded by central Government (with the exception of grants from the SEISS).
Small businesses which are not eligible for business grants should still be able to benefit from other elements of the Government’s unprecedented package of support. The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.gov.uk/business-coronavirus-support-finder.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the hospitality, retail and leisure grants to the wholesale food and drink sector.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that this is a very challenging time for businesses in a wide variety of sectors. Small businesses occupying properties for retail, hospitality or leisure purposes are likely to be particularly affected by COVID-19 due to their reliance on customer footfall, and the fact that they are less likely than larger businesses to have sufficient cash reserves to meet their high fixed property-related costs. The Retail, Hospitality and Leisure Grant Fund (RHLGF) is intended to help small businesses in this situation.
Local Authorities (LAs) can choose to make discretionary grants to businesses in supply chains, like the wholesale food and drink sector, if they feel there is a particular local economic need. The Government has allocated up to an additional £617 million to LAs to enable them to give discretionary grants. While food and drink wholesalers are not one of the priority groups which Government has asked LAs to focus on, LAs may choose to make payments to businesses outside of these priority groups if they feel there is a local economic need to do so, so long as the business was trading on 11th March, and has not received any other cash grant funded by central Government (with the exception of grants from the SEISS).
Small businesses which are not eligible for business grants should still be able to benefit from other elements of the Government’s unprecedented package of support. The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.gov.uk/business-coronavirus-support-finder.
Asked by: Kate Hollern (Labour - Blackburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to extend eligibility for the Retail, Hospitality and Leisure Grant to food and drink wholesalers that supply to care homes, hospitals and schools.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that this is a very challenging time for businesses in a wide variety of sectors. Small businesses occupying properties for retail, hospitality or leisure purposes are likely to be particularly affected by COVID-19 due to their reliance on customer footfall, and the fact that they are less likely than larger businesses to have sufficient cash reserves to meet their high fixed property-related costs. The Retail, Hospitality and Leisure Grant Fund (RHLGF) is intended to help small businesses in this situation.
Local Authorities (LAs) can choose to make discretionary grants to businesses in supply chains, like the wholesale food and drink sector, if they feel there is a particular local economic need. The Government has allocated up to an additional £617 million to LAs to enable them to give discretionary grants. While food and drink wholesalers are not one of the priority groups which Government has asked LAs to focus on, LAs may choose to make payments to businesses outside of these priority groups if they feel there is a local economic need to do so, so long as the business was trading on 11th March, and has not received any other cash grant funded by central Government (with the exception of grants from the SEISS).
Small businesses which are not eligible for business grants should still be able to benefit from other elements of the Government’s unprecedented package of support. The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.gov.uk/business-coronavirus-support-finder.