What discussions he has had with representatives of the (a) retail and (b) aviation industries on the VAT retail export scheme and airside extra statutory concessions.
During the consultation on duty free and tax-free goods carried by passengers in 2020, the Government engaged extensively with various stakeholders and carefully considered 73 consultation responses. I have continued to meet stakeholders, including retail and aviation representatives, following our announcement.
Given the deep trouble within retail and aviation, with Debenhams one of many chains disappearing from high streets with the loss of tens of thousands of jobs and, as the Minister will be aware with Stansted and its importance for employment in her constituency, aviation by and large grounded, does she not accept it was a mistake to scrap the VAT retail export scheme and the extra-statutory concessions, both of which brought much needed revenue to the retail sector at airports, which is now lost from the economy, possibly for good?
We do not accept that. The independent Office for Budget Responsibility set out its assessment of the fiscal impact of the withdrawal of the VAT RES scheme, factoring in a higher than usual elasticity to account for spending on luxury goods. Its estimate is that this will result in a significant Exchequer saving of about £400 million per year. On airports, we recognise the challenges the aviation sector is facing as it recovers from the impacts of covid-19. We have supported the sector throughout the pandemic and continue to do so. This includes the recently announced airport and ground operator support scheme, which will provide eligible firms with support of up to £8 million per claimant.
If he will ensure that people who are unable to participate in work as a result of (a) home schooling and (b) following other Government covid-19 guidance have equitable access to financial support schemes.
Since their introduction, the coronavirus job retention scheme and the self-employment income support scheme have been available to those unable to go to work because of caring responsibilities arising from covid-19, such as caring for a home schooling child or caring for a vulnerable individual. Those who are unable to work from home and have been told to shield have also been eligible for these support schemes, as well as for statutory sick pay and employment and support allowance.
What assessment he has made of the potential merits of providing financial support to wholesale food service sector businesses affected by covid-19 restrictions.
Throughout the covid crisis, the Government have sought to protect people’s jobs and livelihoods, and support businesses and public services across the UK. We recognise that food and drink wholesalers have been severely impacted by the necessary action we have taken to control the virus, but those businesses have been eligible for a number of our economic support schemes, including the job retention scheme, VAT deferral and bounce back loans.
What discussions he has had with (a) Cabinet colleagues and (b) the Coal Authority on funding for ensuring the safety and stability of disused coal tips.
Treasury Ministers regularly speak to their ministerial colleagues on all matters of public spending. Remediation of coal sites is a devolved policy and responsibility lies with the devolved Administration through their Barnett funding.
Sport and Wellbeing: Covid-19 Recovery Strategy
Living Standards in Scotland: UK Fiscal Policy
Support for Businesses: Covid-19
Self-employment Income Support Scheme
Environmentally Sustainable Economic Growth
Self-employment Income Support Scheme.
Financial Services: Equivalence Recognition
UK-EU Trade and Co-operation Agreement: Regional Effect
Air Passenger Duty
NHS Funding: Wales
Covid-19: Regional Economic Disparities
Government Financial Support: Low to Moderate Incomes
The Chancellor has let the financial burden of covid-19 fall on women. They have undertaken twice as much home schooling as men. One in five have had to cut their hours. Some 78% of working mothers have not been offered furlough and 71% of those who asked for it have been refused. Will the Chancellor recognise that once again women have disproportionately paid the price of the inequality in his policies? Will he undertake an immediate equality impact assessment and set out in his Budget how he will offer redress for these widening gendered inequalities?
The truth is that this pandemic has had a desperately difficult effect for the whole of the UK economy, and for families and people across our country and regions. It is appropriate to recognise the totality of the difficulty we find ourselves in. It is true that many women have found themselves in the position of either caring for home schooling or vulnerable individuals. They are supported and protected through the schemes we have put in place. Of course, over and above those schemes, we have also put in place significant amounts of support for remote education, laptops and councils to help vulnerable individuals.
Earlier this month, the shadow Chancellor successfully called on the Chancellor to make it clear that working parents and others can be furloughed owing to childcare responsibilities. Most employers will want to do the right thing, but where an employer is refusing to follow the guidance and offer a parent furlough for childcare reasons, can the Minister tell me who the parent should report that to and what action will be taken?
As the hon. Member will know, furlough is an arrangement reached between companies and their employees. Her Majesty’s Revenue and Customs and the Government do not have direct involvement in that. What they say is that where an agreement can be reached between the two sides we will support them, as laid out in one of the most generous schemes available in any country around the world. As I said, that is just one part of a much wider panoply of support for people at risk through the pandemic.
Food service wholesalers have again seen their trade drop by 95% with hospitality businesses closing, yet they continue to supply our hospitals, schools, care homes and prisons at a financial loss. Many now are on the brink of collapse. What more are the Government going to do to help the industry, which is suffering a double whammy of lost stock and ongoing fixed costs?
I thank the hon. Lady for her question, and, indeed, I met representatives of the sector in my constituency a few weeks ago. The Treasury is in regular discussion with the Department for Environment, Food and Rural Affairs and they are assessing the systemic risks to the food supply chain of the fulfilment of those public sector contracts to schools, hospitals and prisons. We keep these matters under close review, but at the moment there is no threat to those supply chains and, as I referenced, the options that are available to those firms continue to be available.
Well, that was a depressing start, because the truth is that 40% of all the disused coal tips in the whole United Kingdom are in Wales, which is much higher than the Barnett formula would normally allow for. Ninety per cent. of all the disused coal tips in England and Wales are in the poorest communities, so if the Government really stick to this policy of “It’s down to the local authority, which has to find the funding for this”, they are going to see the poorest communities in Britain pay for the legacy of an industry that made this country rich. I urge the Minister, please, to think again about how we can make sure that communities are safe and that the money and the funding are there to make sure that the coal slides, which are likely to come more frequently, do not provide long-term financial and economic problems for those communities.