Recommendations & Conclusions
20 items
1
Conclusion
Second Report - The impact of Coronavir…
Acknowledged
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.
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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.
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Government response AI summary
The government thanked the committee for the report and acknowledged the challenging circumstances of the pandemic, reiterating its role in providing unprecedented financial support measures for businesses.
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Department for Business and Trade
2
Conclusion
Second Report - The impact of Coronavir…
Accepted in Part
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 …
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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 being discriminated against by virtue of having taken parental leave in the last three years is a particularly egregious example of the failure to refine support. We agree with the Treasury Committee (in its Eleventh Report, Economic impact of coronavirus: gaps in support and economic analysis) that the Government’s approach to employees and self-employed people has in practice been inconsistent, unfair and discriminatory.
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Government response AI summary
The government acknowledged concerns about gaps in support and stated it has taken steps, including amending CJRS and SEISS eligibility for specific groups like parents and reservists, and outlined further support announced in the Spring Budget 2021, though it recognized some hard cases still didn't …
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Department for Business and Trade
3
Recommendation
Second Report - The impact of Coronavir…
Rejected
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 …
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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 from dividends.
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Government response AI summary
The government rejects the recommendation to consider solutions for distinguishing dividend income, stating they have engaged with proposals but found them not viable due to administrative difficulties, lack of data, and the risk of fraud with self-certification.
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Department for Business and Trade
4
Conclusion
Second Report - The impact of Coronavir…
Rejected
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 …
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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 to access furlough or SEISS support. The repeated use of the risk of fraud as an adequate justification for not addressing gaps in support for workers is also unconvincing.
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Government response AI summary
The government acknowledges that some individuals did not qualify for support but reiterates its scheme design principles, including targeting support and protecting against fraud and abuse, without committing to address the identified gaps or re-evaluate its justifications.
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Department for Business and Trade
5
Recommendation
Second Report - The impact of Coronavir…
Accepted
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 AI summary
The government acknowledges the challenges and details additional support for creative industries, including £300 million for the Culture Recovery Fund, an extension of the Film & TV Production Restart Scheme, and £300 million for the Sport Recovery Package.
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Department for Business and Trade
6
Recommendation
Second Report - The impact of Coronavir…
Accepted
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.
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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.
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Government response AI summary
The government details various measures from the Spring Budget 2021, including targeted support through a turnover test for SEISS, new Restart Grants, additional discretionary business grants, and extensions to Universal Credit and Working Tax Credit payments, to ensure support for those facing hardship.
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Department for Business and Trade
7
Conclusion
Second Report - The impact of Coronavir…
Accepted
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 …
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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 done to some sectors by the premature withdrawal of furlough and the Self-Employment Income Support Scheme, which would hamper the UK’s ability to recover quickly with a focus on good quality work. (Paragraph 30) 22 The impact of Coronavirus on businesses and workers: interim pre-Budget report
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Government response AI summary
The government responds to the committee's concern about premature withdrawal of support by detailing the extension of the Coronavirus Job Retention Scheme (CJRS) and the Self-Employment Income Support Scheme (SEISS) until September, while also expanding eligibility for both schemes.
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Department for Business and Trade
8
Recommendation
Second Report - The impact of Coronavir…
Accepted
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 …
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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 should continue to build a comprehensive, long-term cross-departmental plan on education, skills and jobs to create good quality employment opportunities for the future.
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Government response AI summary
The government responded by referencing its published 'Build Back Better: our plan for growth' and an upcoming 'Innovation Strategy', along with new bodies like the Build Back Better Business Council and NERT, as its comprehensive framework for addressing long-term economic changes and skill development.
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Department for Business and Trade
9
Recommendation
Second Report - The impact of Coronavir…
Accepted
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 …
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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 provide a detailed outline of their approach in its response to this report. (Paragraph 32) Support for businesses
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Government response AI summary
The government referenced its 'Build Back Better: our plan for growth' as the new framework integrating elements of the Industrial Strategy, along with an upcoming 'Innovation Strategy' and newly established councils and taskforces, to strategically achieve long-term economic goals.
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Department for Business and Trade
10
Recommendation
Second Report - The impact of Coronavir…
Accepted
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 …
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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 years. Whilst some sectors have understandably received targeted support and not every individual circumstance can be catered to, we recommend that the Government considers further tailored support for sectors heavily affected by the pandemic.
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Government response AI summary
The government states it has already provided targeted support through measures like Restart Grants for specific sectors and the new Recovery Loan Scheme, asserting that this ensures support is more tailored as recommended by the Committee.
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Department for Business and Trade
11
Conclusion
Second Report - The impact of Coronavir…
Accepted
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 …
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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 for these businesses is exacerbating the divide between those which have had to close, and those which have not. We are also concerned that the lack of a targeted approach may be resulting in the perverse situation of the taxpayer inadvertently propping up large businesses which have done well during the pandemic.
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Government response AI summary
The government highlights existing and new measures, such as the Restart Grants for hospitality and leisure sectors and the Recovery Loan Scheme, which they state are designed to provide more targeted support and address the concerns about certain industries.
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Department for Business and Trade
12
Recommendation
Second Report - The impact of Coronavir…
Accepted
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 AI summary
The government claims it has already flexed business grant support throughout the pandemic to reflect changing restrictions and is providing new targeted support like Restart Grants and the Recovery Loan Scheme, which they state will ensure support is more targeted as recommended.
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Department for Business and Trade
13
Recommendation
Second Report - The impact of Coronavir…
Accepted
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.
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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.
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Government response AI summary
The government states it has already provided and continues to provide targeted support through measures like Restart Grants and the new Recovery Loan Scheme, which they claim ensures support is more targeted in line with the Committee's recommendation.
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Department for Business and Trade
14
Recommendation
Second Report - The impact of Coronavir…
Accepted
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 …
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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 appropriate, and what additional checks or conditions could be applied to support for businesses in order to reduce instances of fraud, and to sanction businesses which have accessed public funds in bad faith. (Paragraph 45) The impact of Coronavirus on businesses and workers: interim pre-Budget report 23
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Government response AI summary
The government accepts the recommendation to combat fraud and claw back funds, committing over £100 million to a new Taxpayer Protection Taskforce with 1,265 HMRC staff. It will also strengthen law enforcement for Bounce Back Loans and continue to work with agencies to recover funds, …
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Department for Business and Trade
15
Conclusion
Second Report - The impact of Coronavir…
Not Addressed
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, …
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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, we are unconvinced that landlords and businesses will be able to identify a solution on their own in every case.
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Government response AI summary
The government outlines existing temporary tenant protection measures, including a voluntary Code of Practice, but does not identify or commit to developing a new long-term solution for commercial rent arrears beyond these expiring provisions.
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Department for Business and Trade
16
Recommendation
Second Report - The impact of Coronavir…
Deferred
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) …
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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) Moving forward
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Government response AI summary
The government described existing tenant protection measures and announced a Call for Evidence on commercial rents and COVID-19 to identify long-term solutions, including options for mediation or adjudication of rent disputes.
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Department for Business and Trade
17
Conclusion
Second Report - The impact of Coronavir…
Acknowledged
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 …
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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 health measures would need to last. This has been further complicated by the discovery of new variants of the disease which appear to be significantly more infectious. However, the situation we find ourselves in is no longer novel. By continually failing to take a long-view, particularly now that we understand that health restrictions (and therefore business support) will be necessary for as long as the virus is prevalent, needless long-term damage is done to the economy and workers through repeated ‘cliff edges’, which ultimately turn out to be artificial.
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Government response AI summary
The government acknowledges the need to review current measures and continue supporting businesses, but does not commit to a specific long-term strategy or avoiding future 'cliff edges' as highlighted by the Committee.
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Department for Business and Trade
18
Conclusion
Second Report - The impact of Coronavir…
Acknowledged
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 …
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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 will provide businesses and workers with the broad assurances of ongoing support, particularly now that the Government has a range of established measures it can adapt quickly in response to changing circumstances.
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Government response AI summary
The government provides a generic response stating it will continue to review current measures and support businesses, without offering the broad assurances or specific details on extensions that the committee hoped for.
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Department for Business and Trade
19
Recommendation
Second Report - The impact of Coronavir…
Accepted in Part
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 …
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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 phasing them out only when the easing of health restrictions allows. To address the issue of debt affordability for businesses, the Government should also consider whether converting certain existing businesses’ COVID loan debt into grants, could provide an appropriate long-term solution. We also recommend that the Government sets out a clear strategy for business recovery, which addresses the challenges faced by many sectors which will not be able to re-open as early as others.
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Government response AI summary
The government refers to its published 'Build Back Better: our plan for growth' as its long-term strategy for recovery. However, it rejects the suggestion to convert COVID loan debt into grants, advising businesses to discuss repayment options with their lenders.
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Department for Business and Trade
20
Recommendation
Second Report - The impact of Coronavir…
Accepted
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 …
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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 of impending changes to health and business restrictions, and working as constructively as it did in spring and summer 2020 to develop comprehensive and practical guidance on how businesses should adapt to changing health measures. We recommend that the Government proactively engages with businesses and trade union leaders on an on-going basis, to ensure feedback is built into Government policy-making as we recover from the economic consequences of the pandemic. (Paragraph 69) The impact of Coronavirus on businesses and workers: interim pre-Budget report 25
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Government response AI summary
The government accepts the recommendation for proactive and ongoing engagement with businesses and trade union leaders. It confirms plans to continue engagement, communicate changes with sufficient notice, and build feedback into policymaking as the economy recovers.
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Department for Business and Trade