Recommendations & Conclusions
20 items
1
Conclusion
Second Report - The impact of Coronavir…
We commend the Government for moving quickly at the start of the pandemic to implement novel and wide-ranging financial support schemes. We welcome these measures, which have delivered unprecedented levels of financial support to individuals and have shielded vast numbers from the potentially devastating economic impact of the pandemic.
Government response. 1. Thank you for advanced sight of the interim report linked to the Business, Energy and Industrial Strategy Committee’s inquiry on the Impact of Coronavirus on Business and Workers (the Inquiry). 2. We recognise the coronavirus pandemic has created extremely …
Department for Business and Trade
2
Conclusion
Second Report - The impact of Coronavir…
Whilst we welcome the overall level of support offered, we are disappointed that the Government has repeatedly chosen not to adapt and refine its support to address identified gaps in coverage. It is unacceptable that 11 months into the pandemic approximately 3 million people have fallen through the cracks. Mothers …
Government response. 15. We recommend that the Government reviews the coverage of current support to make sure that the greatest support is provided to those individuals facing most hardship, and that any gaps in provision are addressed. We expect the Chancellor to …
Department for Business and Trade
3
Recommendation
Second Report - The impact of Coronavir…
The Committee accepts that there are some groups who have been at a comparative disadvantage, such as those remunerated by dividends. The Government has cited administrative difficulties and the risk of fraud. The Government should consider solutions put forward on how income from dividends can be distinguished from unearned income …
Government response. 24. We have engaged with various proposals put forward by stakeholder groups aimed at providing support to groups, such as Company Owner Directors (COMS), that are not currently eligible in order to see if any are viable. COMS are a …
Department for Business and Trade
4
Conclusion
Second Report - The impact of Coronavir…
We welcome that many individuals who have not been able to access furlough or SEISS will have had support through Universal Credit, discretionary grants from local authorities, and mortgage and consumer credit holidays. However, we are disappointed by the Government’s suggestion that these are a sufficient replacement for individuals unable …
Government response. 23. We recognise that some of the eligibility criteria and conditions that are vital to ensuring that these specific schemes worked for the vast majority meant that, in some hard cases, some people did not qualify for the CJRS or …
Department for Business and Trade
5
Conclusion
Second Report - The impact of Coronavir…
We are also concerned that gaps in support appear to have fallen disproportionately on particular sectors, such as the creative industries. Further Government action is required to support those sectors of the economy.
Government response. Regarding concerns raised around gaps in support for the creative industry, we recognise the significant challenges posed by the pandemic to our arts and creative sectors. The Government is committed to supporting our world-leading cultural and creative industries, which is …
Department for Business and Trade
6
Recommendation
Second Report - The impact of Coronavir…
We recommend that the Government reviews the coverage of current support to make sure that the greatest support is provided to those individuals facing most hardship, and that any gaps in provision are addressed. We expect the Chancellor to announce measures to this effect in his Budget statement next week.
Government response. Since the publication of your report, the Chancellor of the Exchequer has set out the Spring Budget 2021, announcing the next phase of economic support. The Budget seeks to protect the jobs and livelihoods of the British people by providing …
Department for Business and Trade
7
Conclusion
Second Report - The impact of Coronavir…
We appreciate that not every job can be saved as the Chancellor has set out, but are nonetheless concerned about rising unemployment, which is particularly affecting women, BAME workers and young people because they are more likely to be employed in insecure work. We are concerned that damage may be …
Government response. 18. The Coronavirus Job Retention Scheme (CJRS) has already helped to pay the wages of people in 11.4 million jobs across the country, with more than £53 billion paid out in grants across the UK, protecting jobs that might otherwise …
Department for Business and Trade
8
Recommendation
Second Report - The impact of Coronavir…
We recommend the Government urgently produces an economic assessment which sets out the opportunities and risks posed by structural long-term changes to the economy from the combined impacts of COVID-19, Brexit, and the net zero transition. We welcome the publication of the Skills for Jobs White Paper, and the Government …
Government response. The Government has published ‘Build Back Better: our plan for growth’, which looks to the future, providing a framework to guide our longer term growth strategy. Through this we will take forward the best elements of the Industrial Strategy within …
Department for Business and Trade
9
Recommendation
Second Report - The impact of Coronavir…
This plan should form part of the Industrial Strategy to ensure our educational institutions, key business sectors, the workforce and broader economy are strategically geared towards achieving long-term goals such as the net zero transition, our aging society and the technological modernisation of our economy. We recommend that the Government …
Government response. The Government has published ‘Build Back Better: our plan for growth’, which looks to the future, providing a framework to guide our longer term growth strategy. Through this we will take forward the best elements of the Industrial Strategy within …
Department for Business and Trade
10
Recommendation
Second Report - The impact of Coronavir…
We welcome the sheer scale of financial support the Government has provided to businesses since March 2020. For many businesses, this support has allowed them to stay afloat during the pandemic. We also welcome the Business Rates Review announced in the March 2020 Budget to help business in the coming …
Government response. 43. We recommend that if the Government returns to any form of tiered system or localised lockdowns, that financial support for business should reflect that. (Paragraph 41) 44. We expect the Government to respond to the pandemic with more nuanced …
Department for Business and Trade
11
Conclusion
Second Report - The impact of Coronavir…
We are particularly concerned for ‘bricks-and-mortar’ retail which is unable to compensate for physical closure, as well as businesses such as those in the ‘live events’ industry which, though not legally forced to cease operations, have seen a collapse in business due to health restrictions. The lack of targeted support …
Government response. 43. We recommend that if the Government returns to any form of tiered system or localised lockdowns, that financial support for business should reflect that. (Paragraph 41) 44. We expect the Government to respond to the pandemic with more nuanced …
Department for Business and Trade
12
Recommendation
Second Report - The impact of Coronavir…
We recommend that if the Government returns to any form of tiered system or localised lockdowns, that financial support for business should reflect that.
Government response. 43. We recommend that if the Government returns to any form of tiered system or localised lockdowns, that financial support for business should reflect that. (Paragraph 41) 44. We expect the Government to respond to the pandemic with more nuanced …
Department for Business and Trade
13
Conclusion
Second Report - The impact of Coronavir…
We expect the Government to respond to the pandemic with more nuanced and targeted policies in future, and recommend that the Government uses the Budget to review the support it has offered to businesses and announce more targeted support aimed at the sectors most in need.
Government response. 43. We recommend that if the Government returns to any form of tiered system or localised lockdowns, that financial support for business should reflect that. (Paragraph 41) 44. We expect the Government to respond to the pandemic with more nuanced …
Department for Business and Trade
14
Recommendation
Second Report - The impact of Coronavir…
We have previously called on the Government to attach conditions to the use of taxpayer-funded support and are disappointed that, on each occasion measures have been extended, the Government has failed to do this. We recommend that the Government reviews what enforcement powers it has to ‘claw back’ support where …
Government response. 51. We have previously called on the Government to attach conditions to the use of taxpayer-funded support and are disappointed that, on each occasion measures have been extended, the Government has failed to do this. We recommend that the Government …
Department for Business and Trade
15
Conclusion
Second Report - The impact of Coronavir…
With the moratorium on commercial rent obligations due to expire soon, the Government does not appear to be any closer to identifying or facilitating a long- term solution to the difficulties faced by landlords and commercial tenants. While many landlords and tenants have been able to come to an accommodation, …
Government response. 56. The Government should use the time afforded by current time-limited support measures wisely to identify long-term solutions. The Government should consider active measures to address the issue of growing commercial rent arrears, and proactively work with businesses, landlords, banks …
Department for Business and Trade
16
Recommendation
Second Report - The impact of Coronavir…
The Government should use the time afforded by current time-limited support measures wisely to identify long-term solutions. The Government should consider active measures to address the issue of growing commercial rent arrears, and proactively work with businesses, landlords, banks and other stakeholders to identify an appropriate long-term solution. (Paragraph 51) …
Government response. 56. The Government should use the time afforded by current time-limited support measures wisely to identify long-term solutions. The Government should consider active measures to address the issue of growing commercial rent arrears, and proactively work with businesses, landlords, banks …
Department for Business and Trade
17
Conclusion
Second Report - The impact of Coronavir…
Throughout the pandemic the Government has attached expiry dates to support measures, which have since been found to be premature. In most cases, the measures have ultimately ended up being extended, which is undoubtedly the correct decision. In the early months of the pandemic, it was difficult to know long …
Government response. My Department will continue to work closely with the rest of the Government to review current measures, as we continue to support businesses and safely reopen the entire economy as soon as possible.
Department for Business and Trade
18
Conclusion
Second Report - The impact of Coronavir…
As of mid-February, with weeks to go before many support measures expire, the Government has not yet set out which measures will be extended. We understand that the specific course of the pandemic is inherently uncertain, and new restrictions may be introduced at short notice. We hope that the Government …
Government response. My Department will continue to work closely with the rest of the Government to review current measures, as we continue to support businesses and safely reopen the entire economy as soon as possible.
Department for Business and Trade
19
Recommendation
Second Report - The impact of Coronavir…
As more of the population is vaccinated, the Government must shift its policy- making approach from reacting to rapidly changing circumstances towards long-term considerations. In his Budget, the Chancellor must give businesses and workers the security and certainty they need by extending the existing package of measures and committing to …
Government response. 61. As more of the population is vaccinated, the Government must shift its policy- making approach from reacting to rapidly changing circumstances towards long-term considerations. In his Budget, the Chancellor must give businesses and workers the security and certainty they …
Department for Business and Trade
20
Recommendation
Second Report - The impact of Coronavir…
We welcome the strong level of engagement between the Government and business in the early months of the pandemic. The Government must be as open with the business sector as possible, particularly by providing reasonable notice and 24 The impact of Coronavirus on businesses and workers: interim pre-Budget report detail …
Government response. 73. We welcome the strong level of engagement between the Government and business in the early months of the pandemic. The Government must be as open with the business sector as possible, particularly by providing reasonable notice and detail of …
Department for Business and Trade