Public Health Restrictions: Government Economic Support

(Urgent Question): To ask the Chancellor of the Exchequer if he will make a statement on economic support available to individuals and businesses in areas of the country subject to additional public health restrictions.

Yesterday, the Prime Minister and the Chancellor set out further measures to support local authorities through the crisis. On Friday, the Chancellor set out how we will support jobs in every part of the UK through an extension of the job support scheme, and these announcements build on the Chancellor’s September statement on the winter economic plan.

Throughout the pandemic the economic policy focus has been clear—to save jobs. Last month, we set out our plans to help viable businesses that can open through the job support scheme. However, businesses that are required to close due to coronavirus restrictions will also need our help. On Friday, the Chancellor announced the expansion of the job support scheme. Where coronavirus restrictions legally require business premises to close, we will pay up to two thirds of an employee’s salary, up to £2,100 a month, if they cannot work for a week or more. The scheme is nationwide and will run for six months.

In addition, businesses in England required to close will be eligible for a non-repayable cash grant of up to £3,000 a month. This can be used for any business costs. On Friday the Chancellor and I agreed with the First Minister of Wales, the First and Deputy First Ministers of Northern Ireland and the Finance Minister of Scotland on this additional package of support. We have now also guaranteed an extra £1.3 billion of funding to the Scottish, Welsh and Northern Irish Administrations if they decide to do something similar, bringing total guaranteed Barnett funding for this year to £14 billion.

In addition, as announced yesterday, we are providing local authorities in England with around £1 billion to protect vital services, and up to £500 million for local authorities at high or very high risk.

These measures build on the Government’s economic package, one of the most generous in the world, and underline our unwavering commitment to the people of this country.

Just over a month ago the Conservatives passed a motion in the House stating that

“any deviation from this Government’s proposed plan will cause damage to the United Kingdom economy.”

The first deviation came two weeks later when the Chancellor announced his sink-or-swim job support scheme, design faults in which are already leading to substantial and unnecessary job losses. The second deviation came as a belated response to the imposition of localised restrictions announced on television last Friday, with further measures announced yesterday—yet Leicester, for example, has been under localised restrictions for over 100 days. The Chancellor told us to learn our new limits as we go. His handling of the economic crisis is testing patience to its limits, especially the patience of those whose jobs are threatened.

The Government must answer many critical questions, but here are just three. First, why will local areas be provided with support for test, trace and isolate only once they are already in tier 3? This is indefensible. Secondly, there is £1.3 billion-worth of unspent local grants. Why will the Government not allow this money to be used to support local businesses in affected areas? Thirdly, why are workers in closed businesses expected to face poverty as a result of the businesses they work for doing the right thing?