The Government have introduced an unprecedented package of support. This includes grants for small businesses, a rates holiday for businesses operating in the retail, leisure and hospitality sector, a range of loan schemes covering all sides of businesses, the furlough scheme, the self-employment scheme, and a range of tax deferral schemes, all designed to help businesses through this very challenging time.
I thank my right hon. Friend for his answer. Brian and Karen Tinniswood run the Provenance restaurant in Westhoughton, but they have a deep concern about social distancing, which makes it impossible to reopen their restaurant. What consideration has my right hon. Friend given to reducing social distancing from 6 feet to 3 feet, then getting rid of it altogether?
The issue that my hon. Friend raises is raised with me regularly by businesses, and I completely understand the economic rationale that his constituents have outlined to him. As he will know, a review is taking place, and we will wait to see its results.
The OECD predicts that the UK recession will be the worst in the developed world. The Federation of Small Businesses in Scotland has issued a similarly depressing assessment. In terms of supporting Scottish business, what have been the key asks of the Department from the Secretary of State for Scotland?
I have detailed discussions with all Cabinet and ministerial colleagues. I recognise the challenge ahead of us—there is no doubt about that—but we have provided a significant amount of support for the UK economy, and a range of independent commentators have made it clear that if that had not been put in place we would be in a far worse position.
Dr Wallis
The automotive sector is important to my constituency of Bridgend, as it is to the whole UK economy. Will my right hon. Friend outline what the Government are doing to help businesses in that sector recover from the impact of covid-19?
I have set out the full range of support available to all sectors across the economy, and the automotive sector can take full advantage of that. I would point out that the job retention scheme has been widely utilised by the automotive sector, with a recent survey by the Society of Motor Manufacturers and Traders showing that the scheme has been accessed for over 60% of full-time workers in the auto sector.
A number of businesses in my Glasgow Central constituency find themselves blocked from claiming under the job retention scheme as a result of the deficiencies of Her Majesty’s Revenue and Customs uploading real-time information before the outbreak. Will the Secretary of State take up that matter with HMRC and the Treasury, ask for discretion, and make sure that no business that would otherwise be eligible has to lay off valued staff or, worse, go bust, as businesses in my constituency cannot wait any longer?
We want to support businesses, and I have set out a range of measures that we have put in place. The hon. Lady referred to a matter that ultimately is for HMRC and Her Majesty’s Treasury, but I am happy to have a discussion with her after questions.
Tom Randall
A few weeks ago, I was pleased to visit Arnold market in my constituency and it was great to see that it was operating very well under the new guidelines. As the wider high street is now beginning to reopen, can my right hon Friend tell me what support his Department will be giving to shops as they reopen?
I thank my hon. Friend for doing his bit to support businesses in his constituency. In coming up with the workplace guidance, which has allowed businesses to open safely, we have worked closely with businesses, business representative organisations and trade unions. I have already outlined the support that we have provided for the sector, but what we all need to do is to get out there to support businesses that are now opening. We owe that to them and to the economy to get it going again.
What an intelligent question. On 20 April, my right hon. Friend the Chancellor announced a package of support worth £1.25 billion for fast-growing innovative companies and that, of course, included £750 million in grants and loans delivered through Innovate UK, and a £500 million future fund, through which the Government will invest up to £5 million per company, matched by the private sector.