Coronavirus: Supporting Businesses and Individuals — House of Commons, 2021-02-23
Topic: Macroeconomics
Bridget Maeve Phillipson (Labour, Centre-left): I beg to move, That this House calls on the Government to support businesses and individuals still struggling as a result of the coronavirus crisis in the forthcoming budget by extending business rates relief for at least another six months, extending the temporary 5 per cent reduced rate of VAT for three months after restrictions are lifted or for another six months, whichever is later, helping British businesses struggling under the burden of Government-guaranteed debt by ensuring that small businesses can defer paying loans back until they are growing again, extending and reforming the furlough scheme so that it lasts whilst restrictions are in place and demand is significantly reduced, immediately confirming that the fourth Self-Employment Income Support Scheme grant will be set at 80 per cent of pre-coronavirus crisis profits and extending eligibility to that scheme to include anyone with a 2019-20 tax return and fixing the gaps in coronavirus support schemes to support those who have been excluded from the beginning of the crisis; and further calls on the Chancellor of the Exchequer to make a monthly oral statement to Parliament updating the House on these matters Today’s debate takes place almost a year after the first introduction of national lockdown restrictions due to the pandemic. We all know how trying events since then have been for families and businesses up and down our country, and now, thanks to the vaccine and the incredible work of NHS staff and volunteers, there is real hope that before long we can return to some semblance of normality. While there are grounds for optimism, however, we on the Labour Benches know that there are still deep worries among many businesses and working people about whether their firms and jobs will still be viable when the restrictions are lifted. So many people are concerned about whether they will have a job to return to, and millions of people who have gone for almost a year without support are questioning how they will manage to get by until our economy reopens What people want and need right now is clarity. They need a sign that the Government get it, and that they understand and can respond to the needs of businesses and workers who have been placed under such incredible pressure through no fault of their own. The Prime Minister’s road map provides tentative suggestions about when businesses may be able to reopen, but we did not hear how the Government will be able to help to tide them over until that time. As with almost every major announcement throughout this crisis, we have had an update on the restrictions but no update on the economic support. It is not even clear whether the Chancellor believes that there is a relationship between restrictions and additional support, or whether he believes that businesses and workers should simply be grateful for what they have got. He may not be here today—it is becoming clear that accountability is very much not part of his brand—but we should be in no doubt about the harm that this approach has caused. Our country has endured the worst economic crisis of any major economy. Throughout the crisis, Ministers have made the same mistakes time and again and been forced to play catch-up at every turn, long after the problems with support have become apparent. Whether the Chancellor is being careless or negligent, his approach is the opposite of what businesses need, which is the provision of certainty and assurance so that they can plan ahead. Where issues exist, they expect Government action to address them; they do not expect problems to be dumped in the "too difficult" box. There are few more egregious examples of that than the Chancellor’s persistent failure to help the excluded—the people who fall into the gaps between Government schemes. These are people who have taken risks by starting their own businesses, or perhaps they were changing jobs, but through no fault of their own they have been denied support since the start of the pandemic For many months, Labour has called on the Government to fix these problems. At first, Ministers said that it was not practical to do so, and of course we accept that in those fast-moving few weeks right at the start, that was fair enough, but now, almost a year on since the start of restrictions, how can this possibly be justified when the solutions are in plain sight? I repeat my call to the Minister today: when are the Government going to do what is right and fix the gaps in their support schemes? Labour recognises the value that self-employed workers bring to our economy. We want to see people taking risks, becoming entrepreneurs and helping to build the fairest possible recovery and a dynamic economy. That is why we would help those who are excluded from support by extending eligibility for the self-employed income support scheme to anyone with a 2019-20 tax return, and it is why we are asking the Government today to confirm that the fourth self-employed income support scheme grant will be paid at 80% of pre-crisis profits.