Four months on from the onset of coronavirus, we have slowly and carefully reopened much of our economy, and we can now begin our national recovery. Throughout this crisis, I have repeatedly made it clear that, while we cannot protect every single job, we will do all we can to make sure our businesses and people have the tools they need to get through this and emerge stronger on the other side.
To help the aviation and travel sectors recover from the negative impact of covid-19, will my right hon. Friend consider suspending air passenger duty until at least the end of summer 2021?
My hon. Friend, as always, is a champion for the industry, and he knows how important it is to the UK economy. I can tell him that, in the Budget, we committed ourselves to a consultation on aviation tax reform. We remain committed to that, and will bring forward the timing in due course.
The Chancellor stated earlier that the job retention scheme is being wound down from the autumn. It is actually being wound down from the start of next month across all sectors at the same time, and we are already seeing the impact of that in very substantial redundancies. The Resolution Foundation called this week for a targeted continuation of the scheme for the hardest-hit industries and those areas affected by additional lockdowns. The Chancellor has said he does not want to pick winners, but this health crisis has involved Governments designating losers, quite rightly, for public health reasons, so why is he persisting with the one-size-fits-all removal of the job retention scheme, when that will inevitably lead to additional redundancies?
This is not about picking winners or losers. This is about protecting people’s health, and where it is incumbent on the Government to step in and make sure that we can protect people’s health through targeted intervention, that will remain the right thing to do. With regard to economic support, my right hon. Friend the Health Secretary has made it clear that support has been provided to the local council when this has been the place to do so. With regard to the furlough scheme, we are of the belief, rightly, that this is a universal scheme; it is generous; it has been extended to October; and it is winding down in a gradual and temperate manner.
I have to say that it is disappointing to hear that the Chancellor is not budging from this position. As mentioned, it is already leading to additional waves of redundancies—avoidable redundancies in many cases. Labour has repeatedly called on the Government to match the ambitions of Labour’s previous future jobs fund in developing support for unemployed young people, so may I ask the Chancellor why, put together, the traineeship fund and green jobs challenge fund—just announced—amount to less than a quarter of the size of the future jobs fund? That hardly reflects a focus on jobs, jobs, jobs.
I am not quite sure that is right. In reality, the future jobs fund was around £1 billion. We announced yesterday the £2 billion green home grant to provide home efficiency upgrades for hundreds of thousands of homes and create tens of thousands of jobs up and down the country. Not only will households save money on their electricity bills and save carbon, but we will create good local jobs in the process.
From a health perspective covid-19 disproportionately affected the old, but from an economic perspective the risks are greatest for the young, in terms of both lost employment opportunities and potentially a future higher tax burden. What reassurances can my right hon. Friend give that the economic prospects of young people will be his priority in the future recovery?
My hon. Friend is absolutely right: young people are more likely than not to work in affected sectors and more likely than others to be furloughed, and we know from all the evidence that the impact of scarring on young people is very significant, which is why they remain uppermost in my mind. I give my hon. Friend the reassurance that they will be prioritised as we think about our recovery and our labour-market interventions.
The Tea Bay in Cambuslang in my constituency responsibly took out business-interruption insurance, including cover for notifiable diseases. The one time it has had to claim is during the coronavirus pandemic, but that claim has been refused because covid-19 is not on the list of notifiable diseases.Many other businesses have found themselves in the same position and understandably feel frustrated that insurers have not helped them in their time of need. What discussions is the Treasury having with the Financial Conduct Authority to remedy this situation?
As the hon. Lady will know, the Treasury is in constant communication with the FCA on these and other issues. If she would like to bring the specific details to my attention, I will make sure that they are examined by Ministers.
Douglas Ross (Moray) (Con)
Our coach industry will be vital as the country opens up and we begin our recovery from covid-19. Local Moray firm Maynes of Buckie, and its owner Kevin Mayne, have been leading calls for a bespoke deal to support the coach industry. Will the Treasury look at that idea and consider it?
I am sure my hon. Friend understands that the desire for bespoke deals across every sector is extremely great. Our view has been that what is required is to lift all boats by a general support for the economy, and that is the approach we have taken, which is why the interventions we have made so far include almost £300 billion of guarantees—worth roughly 15% of UK gross domestic product.
On Saturday, we proudly and safely reopened hospitality and tourism in Cumbria. Tourism is our largest employer, but 69% of hospitality industry businesses will not be able to reopen fully. Having lost most of the season, the industry will see hundreds of successful businesses fail and tens of thousands of jobs lost—unless the Chancellor agrees to a package of grant and wage support in the Budget statement tomorrow. Will he do that?
As the hon. Gentleman will be aware, an enormous amount of support is already in the system. I am delighted that shops and other organisations are opening up in his constituency; we look to see more of that over time as the support feeds through into the system.
Does my right hon. Friend the Chancellor agree that beauty salons, tanning salons and nail bars—such as Salon 112 and Shwe Tan based in my constituency of Harlow—are important small businesses and often the lifeblood of our local economy? They should be supported, allowed to open and not denigrated. Will he ensure that when he cuts taxes, businesses such as these will be a top priority, given the struggles they have had to face?
No one who knows my beautiful right hon. Friend would be surprised that he knows these beauty salons as well as he does, and I salute him for it. On the serious point, he is absolutely right about the importance of these businesses to all our constituencies. He did not mention this, but we should also mention that many such businesses are run and staffed by women, and it is important that we should pay attention to the equalities impact in that respect. The key thing is that we get these businesses, including beauty salons, open. That is what the Treasury has focused on.