[Relevant documents: e-petitions 301186, 308733, 301836, 303081, 320711, 301903, 300210, 307959, 305024, relating to support for UK industries in response to covid-19; Second Report of the Treasury Committee, Economic impact of coronavirus: Gaps in support, HC 454; Second Report of the Transport Committee, The impact of the coronavirus pandemic on the aviation sector, HC 268; Oral evidence taken before the Digital, Culture, Media and Sport Committee on 9 June 2020, on The impact of Covid-19 on DCMS sectors: Creative industries, HC 291.]
This is a very, very well-subscribed debate and I also want to accommodate a maiden speech. Until the maiden speech is finished there will be a time limit of six minutes, including for the maiden speech. However, I must warn colleagues that if everybody who is down to speak actually turns up—I suspect they will—it is likely that we will have to put another three-minute time limit on in order to accommodate as many people as possible. I strongly discourage interventions, because they will prevent others from speaking. That is how I intend to conduct the debate.
That this House has considered e-petitions relating to support for UK industries in response to covid-19.
As we have heard already today, the volume of signatures on parliamentary petitions has been huge in recent weeks, reflecting the immense public anxiety about the health emergency we have been living through. I thank every one of the 641,986 people who signed the five petitions that reached the 100,000 threshold and that we are considering today. They are on support for the events industry; for the arts, theatre and music; for zoos, aquariums, and rescue centres; for nursery and childcare providers; and for aviation. I also thank the 74,735 people who have backed seven other petitions that are also relevant. Those petitions are on help for performers and creators; for pubs and hospitality; for early years providers; for wholesalers; for health businesses; and for small businesses.
There is no escaping the devastating impact the covid emergency has had on our economy. That is unavoidable when vast swathes of business activity are shut down. But the Government have listened and have heard the calls to intervene, from the 12 e-petitions and from millions of other people afraid for their livelihoods and their future, including many in Chipping Barnet, and I thank the Government for their intervention. At immense speed, the Government put in place the biggest package of help for jobs, livelihoods and businesses in our nation’s history.
Through the furlough scheme, the Government are paying the wages of more than 9.1 million workers, providing £20.8 billion to more than 1 million employers. More than 2.6 million people have received grants from the self-employed income support scheme, which is one of the more generous in the world. More than 863,000 companies have received bounce-back loans—these have been worth more than £26 billion.
The right hon. Lady is making a fine speech. I welcome the support that the Government have put in. Does she agree that people in the concert and festival industry, in particular, are facing a double whammy? Not only will they be among the last industries to get back to anything like normal, but many of them are self-employed and, for various reasons, fall through the gaps in the self-employed scheme. Does she agree that we need sector-specific support for the concert and festival industry?
I do agree with the hon. Gentleman on that. They are more heavily impacted and I hope it will be possible to have a sector-specific scheme for them.
I was about to turn to exactly that point—the arts, events, theatre, performance, musicians, actors and creators. With no date set for the resumption of events and performances in theatres or music venues, this crucial part of our economy could be the hardest hit of them all. The future of our regional theatres in particular looks perilous. Adrian Vinken, chief executive of the Theatre Royal, Plymouth, wrote in the Daily Mail today:
“The entire performing arts industry is…facing oblivion. This is not only a human and economic disaster—it is a cultural catastrophe.”
As we heard from the hon. Member for Manchester, Withington (Jeff Smith) , the insecure and sporadic nature of jobs in the industry means that many workers fall within the gaps in the Government’s covid intervention package. This includes, typically, freelancers who get part of their income through PAYE and part of their income through self-employment. They may not have been in their PAYE contract at the right time to be furloughed, and they may not earn enough of their income from self-employment to qualify for the self-employment income support scheme. As well as considering further funding support for those workers and sectors, we must have a clear plan to get theatres and venues open and to get events starting again, as has been managed in countries such as South Korea.
It is also really important to reflect on aviation, which, as the petitions highlight, is also hard hit. We need the air bridges in action. Blanket quarantine requirements will make it a hundred times more difficult for aviation to recover, and it is hard to understand the need for quarantine for people coming from places that have fewer covid cases than we do. I appeal to the Minister for a risk-based approach on quarantine so that travel can start up again and we listen to the petitioners who are demanding help and support for aviation.
Does the right hon. Lady agree with me and the Treasury Committee that the Government, unfortunately, have left out more than 1 million people through the job retention scheme who are struggling? Many of them are freelancers working in the theatre sector and others—there are new starters who are suffering. We need to make sure that they get support they need, alongside the many things that she is talking about.
I certainly acknowledge that the Treasury Committee identified gaps in provision. Unfortunately, a number of my constituents fall into those gaps, so I hope that there may be further help, but more importantly, we have to get the economy opened up again so that people can start earning a living in a normal way.
On zoos and aquariums, I welcome the grants of up to £100,000 offered by the Government to get them through the crisis, again responding directly to the e-petition. I pay tribute to the dedicated work of zoo staff, many of whom went the extra mile to look after the animals in their care, despite lockdown.
Whether it is zoos or nurseries, theatres or airports, hospitality or wholesale, the best shot in the arm the Government can give all these sectors is to let them open for business again. It was therefore an immense relief to hear from the Prime Minister that the 1 metre rule, with safeguards, will be introduced in England from 4 July. I have been advocating this for weeks as the only way to save our pubs and hospitality, travel and tourism businesses—and the only way to save the summer holidays.
The multiple schemes I have set out have provided vital life support for the economy and are protecting the livelihoods of millions upon millions of the constituents who vote for us to serve them in this place. They have protected people who would otherwise be facing great hardship and adversity, but their eye-watering cost means it is inevitable that they are time-limited. The only way to put the sectors highlighted in the 12 petitions on to a sound and successful footing for the long term is to let people out of their homes, back to work, back to the shops and back to the pub. That is starting to happen and I very much welcome the news that 4 July will truly be our independence day as we take the next cautious steps in lifting lockdown and moving on from the covid emergency.
It is a pleasure to follow my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and I absolutely agree with her sentiments about opening up the economy.
May I say right at the outset that I think what the Government have done in terms of this unprecedented economic support—the support for businesses and for workers against the economic consequences of the pandemic —has been truly extraordinary, and the speed at which those programmes were put in place was particularly impressive?
In my constituency alone, 10,000 jobs were furloughed under the job retention scheme—10,000 incomes. With that support through the crisis, people have a chance of a job in the future as the restrictions ease. I am very pleased that the scheme has been extended and that there is the ability to part-time furlough. That flexibility has to be right; the businesses want that as they gradually reopen.
However, I would point out to my hon. Friend the Minister that there are a number of issues with the scheme, which, with a little bit of tinkering, could easily be put right. He will be aware that one particular problem is that eligibility is based on a real-time information submission to Her Majesty’s Revenue and Customs. The problem for a lot of small businesses is that they had agreed with HMRC that they would make an annual return and, therefore, not being required to make the RTI return, they are ineligible for support. A brief word with the chief executive of HMRC would sort that problem out.
The self-employment income support scheme is very welcome. It is estimated to help 4,000 people in Wimbledon, but I have been contacted by a number of people who, because they became self-employed last year, do not qualify. They feel they have fallen through the cracks. Will the Treasury look at that? A number of the people affected are starting businesses for the first time and are likely to be the lifeblood of the economy as we recover; a little help now would work. Of course, the same applies to directors of small limited companies. If they were put on the same footing as the self-employment income support scheme, that would mean a grant, which, in some cases, would save their businesses. With that minor tinkering, the scheme could be even better than it already is.
I will follow your guidance, Madam Deputy Speaker, and I will not take interventions.
Coronavirus has hit all sectors of the UK economy, some harder than others, and aerospace and air travel will be one of the hardest hit. I have been here long enough to remember the effects on the industry of 9/11 and the banking crisis. These were severe, but nothing compared with the challenge that we face today. For Airbus in Broughton in my seat, this has meant a reduction in production rates of about a third. Some 40% of the UK workforce in the commercial aircraft division is currently on furlough. About 500 employees at Broughton have been working on the ventilator programme. I am sure everyone here and everyone in the country will be extremely grateful and proud that that has happened. It demonstrates what a dedicated workforce we have, but their reward for this work, as the programme comes to an end, is that many of them will not qualify for furlough. I think that that is an absolute disgrace. I would ask the Minister to really look at this situation. It cannot be right that the people who have done this work do not qualify. They are a special case and they should be treated as such. Airbus has stepped in and will cover the furlough, but that is hardly the point. I ask the Minister to press his Treasury colleagues on this matter urgently.
Industry experts do not expect passenger demand to return to pre-crisis levels before 2023. That will in turn mean that actual production rates will not catch up until 2025. With 70% of the value of an aircraft in the supplier chain, the effects there could be devastating, leading to a near total collapse of the sector if intervention does not occur. If we are serious about maintaining a viable aerospace sector in the UK, we need to be serious and have a strategic plan that embraces not only companies such as Airbus and the airlines, but the supplier chain. All parts need to work together to that end. I am concerned that some airlines—well, one in particular—see this crisis as an opportunity to remove rivals and ride roughshod over the terms and conditions of their workforce. That type of attitude and approach needs to change. We need a united front to face this crisis.
Thank you for the opportunity to make this, my maiden speech, Madam Deputy Speaker.
It is a great honour and a great responsibility, joyfully accepted, to represent the people of Broxtowe with all the energy, determination and commitment of which I am capable. I say to all my constituents: “I will be your man. I will stand up for you. I will not turn from the challenges you face, but make them my own. While I have the privilege to serve you, you will not be forgotten in this place.”
I would like to pay tribute to my predecessor as the Member for Broxtowe, Anna Soubry. I may not have agreed with all that she said in this place, but I wish to set on record my acknowledgement of the good work she did for Broxtowe and for her constituents. I wish to thank her for her efforts on improving access at Beeston railway station. I admire her strong will and her determination to do what she felt was best for Broxtowe and for this country, and I wish her the best of British.
This week is the 72nd anniversary of the arrival of the Empire Windrush. The people of the Windrush generation came to Britain to help rebuild our great country, and my parents were among them. Dad, Harry, is from Jamaica, and Mum, Gloria, from Trinidad. Like many of that too long ignored generation, they worked hard to make a good life here. Dad worked double shifts, and Mum worked all day in a factory. They saved; they bought a house. They were ambitious, and they prospered. We were a traditional British working-class family: hard working, loyal, fiercely patriotic—and Conservative.
Opposition Members claim Windrush as their own, as if it is obvious that immigrants are somehow obliged morally and practically to be Labour supporters. Well, my family were not, and I am not. I stand here as evidence of what immigrants and their children can achieve in what my parents called the land of opportunity. I am proud to be the first Conservative MP of West Indian heritage—black, British with all my heart, immensely proud of my West Indian heritage and Conservative to my fingertips.
I congratulate the hon. Member for Broxtowe (Darren Henry) on an excellent maiden speech and on his very powerful story. I add to his tribute to his predecessor, who brought great passion to our debates in this House. I am sure that he will bring many insights from Broxtowe, too.
Many businesses across the country are breathing a sigh of relief that they can start trading again. The level of Government support for businesses has been unprecedented, and that is undoubtedly to be welcomed; it has provided a lifeline to swathes of our economy at this incredibly challenging time. However, although the support is extensive, we cannot ignore those who have slipped through the gaps. We also cannot pretend that this is not going to be difficult for months for industries where normality is still a long way off.
Aviation is a key area in which recovery will be slow. Flights may be restarting and discussions on air bridges under way, but the sector does not expect demand to return to pre-crisis levels until at least 2023. The crisis will have a sustained effect on our aviation industry.
Newcastle airport in my constituency is an international and domestic transport hub, a strategic asset for the north-east and central to our economic growth. It is a large regional employer but also supports many regional jobs, on site, off site and in the supply chain. Our airport supports manufacturing business, exports, and higher education through our world-class universities. It also supports the tourism sector, which was thriving before this crisis.
I have raised support for aviation in the Chamber a number of times, but there is still a concerning lack of appreciation for the special circumstances faced by the industry. There also seems to be a lack of understanding of how this crisis will impact the sector’s transition to being greener and cleaner and of the longer-term impact on regional economies such as mine. As co-chair of the all-party parliamentary group on sustainable aviation, I believe passionately in the importance of a strong and stable aviation sector.
Several hon. Members rose—
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Some £10 billion has been lent to 49,000 firms under CBILS—the coronavirus business interruption loan scheme. Small businesses in the retail, hospitality and leisure sector have received cash grants of up to £25,000 and been given a 12 month business rates holiday. A £1.25 billion package is available for start-ups, and £30 billion of VAT payments have been suspended for three months. Some 68,000 businesses have benefited from the deferral of other taxes, and smaller businesses have received help with funding sick pay.
Without that bold and radical intervention by the Government, and the speed at which it has been delivered, our situation today in this country would be far, far worse, as the Office for Budget Responsibility, the International Monetary Fund, the OECD and the Bank of England have all confirmed. Unemployment would have rocketed and thousands of businesses would have gone bust, both in the sectors highlighted in the 12 e-petitions and in many others. There has been extensive backing for what the Government have done, including from Len McCluskey, of Unite, who said of the furlough scheme:
“We recognise that these are huge decisions for any government, and especially for a Conservative government, but they have listened to the calls for action and have acted appropriately. Rishi Sunak’s wage support measures are a historic first for this country, but are bold and very much necessary…This will definitely be some relief amid all the fear in households across the UK this evening.”
However, were it not for the difficult decisions taken by Conservative-led Governments since 2010, we would not have been able to respond in this way or on this scale. It is only if we fix the roof while the sun is shining that we have the resources and the balance sheet to intervene aggressively to provide the kind of action called for in these petitions. Sadly, we all know from our inboxes that, even with the scale of what we are doing, there are gaps in support. In an economic disaster as great as this one—possibly the worst for 300 years—there are inevitably still many people facing hardship and uncertainty about their future. I hope that the Minister will consider whether any further help is possible for the sectors highlighted in the 12 e-petitions.
Our nurseries and childcare are also mentioned in the petition. I welcome the extension of the business rates holiday, directly implementing one of the demands of petitioners, but Ministers need a firm and funded plan to support the sector in the long term. The early years stage of education is crucial in determining life chances, and if we are to deliver on our promises on social mobility and respond to legitimate concerns on equality of opportunity, we need to help nursery and childcare providers through this crisis and ensure that they are on a stable footing for the long term, including restoring funding for maintained nursery schools.
The hospitality, retail and leisure industry is obviously at the forefront of the economic costs, having been unable to open until 4 July—as my right hon. Friend the Member for Chipping Barnet said, we look forward to that date. The support for the sector has been outstanding, but the Minister will know that in some parts of the country the £51,000 rateable value limit is relatively small compared with the sums the businesses are transacting. On future economic packages, I say to the Minister that it would be really helpful if the Government recognised that there are some quite major regional imbalances in rateable values when businesses are broadly of the same turnover and this would be a huge benefit.
While there has been extraordinary help to the retail, hospitality and leisure chain, inevitably a lot of the suppliers to those industries have not been able to get any help at all. What has been seen to be a postcode lottery has been developing on the basis that the Government have given advice on what qualifies as a retail, leisure or hospitality business. It is pretty specific, although the Government do say that the list is not exhaustive. The trouble is that different councils are choosing to interpret it in wildly different ways and it is having a major impact on suppliers to these industries.
I pick up the events industry in my constituency, with White Light and Oxygen Event Services being two companies that may not be able to reappear in the way they were before this pandemic hit the country, and that would have a huge impact on the concert, festivals and hospitality industry. May we have a bit of Ministry of Housing, Communities and Local Government guidance to councils, that industry and also language schools, which are huge providers to local economies, particularly in Wimbledon? I have seven language schools that provide consumer expenditure into the local economy from the students, jobs for teachers and support for local families who house these students. Again, a postcode lottery has developed: in some places these businesses and schools are getting help and in others they are not. Again, if the MHCLG could be more prescriptive about exactly what should be allowed to be available for business rate relief, that will help.
There are a number of other industries I could comment on, but finally, can I just say that, as a London MP, I am proud of the culture and the arts in this city? I want to see that arts and culture not just in the west end, but across constituencies. I have the New Wimbledon theatre and the Polka theatre. On what such venues need to survive, can I ask the Government to really look very hard at this? A number of people working in these industries have had no income or access to help since the pandemic struck. I know there are various packages that the Arts Council funds, but we need a specific performing arts financial package, so that all theatres and concert venues can survive and the people who work in that industry will be there to make sure that, when they reopen, arts are being performed in them. That would mean that the culture in this country would survive, which is so vital to our future, alongside the economy and our health.
In the US, Germany and France, we have had announcements of targeted programmes of support. The latest announcement from the French Government included a raft of measures. Its aim is to protect some 100,000 jobs. It includes a reduced working week or working hours, with the difference picked up by the state. That will last up to two years. There will be a one-year moratorium on aircraft loans under the export credit agencies, amounting to around €1.5 billion. In addition, Airbus will have 18 months to pay loans, rather than the six months currently. That is worth around €2 billion. Defence procurement projects are also to be brought forward with new investment to help the sector, and the defence sector SME fund will be increased by 50% to €100 million a year. Air France-KLM has already been given a €7 billion loan guarantee to secure its future.
In addition, the French Government have promised more investment, with €1.5 billion to decarbonise and produce carbon neutral aircraft by 2035, rather than the current target of 2050. Those are bold plans that look at the medium and long terms. They recognise that there will be no quick fix, and we in the UK need to rise to that challenge, otherwise we will be left behind and could lose one of our greatest and most important industries.
What can we do to help to secure the future? We clearly need a job retention support scheme, not just for now and a few more months, but for the long term. We need to retain skills and we need the flexibility that reduced working hours can offer. We need to build support for Airbus by speaking to the airlines and retiring older, less efficient aircraft from their fleets. Around 70 aircraft flown by UK-registered airlines are more than 15 years old.
We need to address the complete mess, as has been mentioned, of quarantine, which has already added to the crisis. We need to invest in research and development, make advances in R&D tax credits and confirm that funding of the Aerospace Technology Institute will be doubled to £300 million a year. We need something for the supply chain, because that is in many ways the most vulnerable part of the sector. We need a long-term policy to ensure that there is an investment fund to keep suppliers alive during this crisis. We need to bring forward defence projects, but they need to be in this country, not just bought off the shelf from America.
If we do not step up to the plate, the future will not be good. For Broughton, it is always about securing the next wing. If we do not secure the next wing and Germany, France or Spain get it, the future will be bleak. I ask the Government to act and act now before it is too late.
Before coming to this place, I spent 26 years in the Royal Air Force. Like others here, I knew that service to my country was the right and dutiful career for me. On my first day in the RAF, I had a splendid Afro hairstyle, and now, because of weeks of lockdown, I am delighted —my Afro is coming back!
The armed forces are known for getting things done, and that is what I will do for the people of Broxtowe. At Chilwell station, also known as Chetwynd barracks, we have seen service personnel assisting efforts to tackle the covid-19 pandemic as part of Op Rescript. As it is Armed Forces Week and Veterans Day today, I hope that this message is heard loud and clear by my fellow veterans: “If you are driven by public service, as I am, stand up and serve your community again.”
During my election campaign, I pledged to support investment in our local hospitals as part of my six-point plan for Broxtowe. This is a cause that is close to my heart. My wife Caroline spent 25 weeks out of her 34-week pregnancy in hospital. It is to Caroline and the NHS staff at Nottingham City Hospital that I say thank you for the blessing that is my twin children. That is why I am delighted that, after months of lobbying, the Government have provided seed money for the local Nottingham University Hospitals NHS Trust to develop and rebuild modular buildings and key sites, including a new women’s and children’s unit, which will benefit families in Broxtowe.
Parents do their best for their children. As the father of two children with autism, I recognise that those in Broxtowe who are on the autistic spectrum or suffer with mental health conditions have found it particularly difficult being cooped up during lockdown. In normal times, getting mental health support is a struggle. I am convinced that it does not have to be this way. The Government’s planned reform of the Mental Health Act 1983 must ensure that people subject to the Act receive better care and have a much greater say in that care. I will continue to fight to secure the needs of vulnerable people in Broxtowe. They will not be forgotten.
In today’s debate, we are considering support for UK industries in response to covid-19. In my own constituency of Broxtowe, enterprises as varied as the Boots headquarters, which opened the first non-NHS swab testing site in the country, and independent, family-run firms such as Fred Hallam grocers, who delivered extensively to help people during covid-19, have diversified to ensure that the needs of our community are met. With the HS2 east midlands hub set to be in Toton, and Stapleford soon to be revitalised by the town deal funding, Broxtowe will have a thriving future.
I will work to make that vision a reality for the people of Broxtowe—my constituency; my people. To paraphrase D. H. Lawrence, a local lad made good, I will be still when I have nothing to say; when genuine passion moves me, I will say, and say it hot.
Newcastle airport has ambitious plans to become a net zero emissions airport by 2035. However, demand for new aircraft will take years to recover from its expected drop, which could mean manufacturing job losses and a decline in this strategic industry at a time when we need more investment in cleaner and greener aviation technology, not less.
The industry is asking for greater understanding and support in the difficult months ahead. It needs air bridges to be arranged as soon as possible. Twelve months of business rates relief, as has been provided to airports in Scotland and Northern Ireland, would level the playing field and support businesses through this period. A temporary suspension of air passenger duty is requested while aviation demand recovers, particularly when it comes to regional air connectivity. We urgently need action so that the industry can prepare and protect jobs.
I turn to the many smaller businesses in my constituency that face so much uncertainty about their future. We have a world-leading performing arts sector, which has been brought to its knees by this crisis. We could see devastation of the cultural and entertainment scene in so many communities. One of my constituents who works in the industry said:
“Over the recent period of lockdown I have watched as theatre after theatre has closed down, unable to remain afloat due to the incredible lack of funding already present within the industry and have watched so many of my friends and colleagues being made redundant.”
So many venues do not know when they will be able to reopen and are fighting for survival. I was contacted by a dance school that just wants to know when it might be able to reopen. We have seen what has happened to tourism businesses, self-employed people—I could go on; there are so many.
As Britain cautiously emerges from lockdown and some level of normal returns, we cannot allow those who have lost out most from this crisis to continue to be forgotten. We must do everything we can to make sure that as many as possible get through this crisis and continue to provide their services in the future.