Coronavirus: Supporting Businesses and Individuals — House of Commons, 2021-02-23
Topic: Mixed Topics
Alan Brown (Scottish National Party, Centre-left): We are effectively a year on, and solutions for the 3 million excluded still have not been found, so we know that this is a Government choice. Excuses about quick implementation, complexities and the risk of fraud no longer stand up to scrutiny as an excuse for doing nothing Let us look at the limited company director issue. First, it is absurd to still be going on about being unable to distinguish between earned income and unearned income from dividends. It is quite clear that the majority of these sole traders are not exactly living it large from a portfolio of other investments, and HMRC has access to their tax returns. There is a solution available: the directors income support scheme, which is supported by the Association of Chartered Certified Accountants, ForgottenLtd and the Federation of Small Businesses. This award would be based on the trading profits of a company. Maximum thresholds could be applied, and the Government could even look at rates being based on the living wage, but there seems to be a dogged determination that nothing is possible Let us also look at the lack of targeted sectoral support that has been announced. The Scottish Government and other devolved Administrations have responded much better in this regard. In Scotland, for example, there has been food wholesaler funding, given that these major suppliers were excluded from hospitality sector support. The UK Government need to do likewise, given the extended lockdown we are still in. They also need to copy the bus, coach, taxi and private hire funding packages, among other things. Now is the time for the UK Government to look forward by investing in battery and hydrogen-powered buses. It is an ideal time to support manufacturers in a way that will grow businesses as well as provide short-term support Where is the support for the wedding industry and the travel industry? The latter is even more crucial, given the restrictions that will be in place for a long period. The Scottish Government have announced a further rates relief extension for airports and a travel agent support scheme. Surely the UK Government could do likewise, which would create further Barnett consequentials We know that freelancers in the creative industry have been completely hung out to dry. To make matters worse, Brexit and the lack of visa-free travel has taken away further work opportunities, which is completely crazy If we look at the hospitality and leisure industry, we see that the Scottish Government have just committed to rates relief for the next year, which goes beyond Labour’s call for six months. In this period, we should also look at extending the temporary VAT level of 5% for the full year, considering the latest road maps we have, where some businesses could be looking effectively at a five-winter scenario. This ties in with the need to start looking at converting these loans to equity or grants. When the loan schemes were first devised, it was not envisioned that we would still be in restrictions a full year later, so clearly, the terms of these loans need to be reassessed Going forward, there is going to be a massive debate about what an independent Scotland could do to recover better, and I look forward to that as well.