Select committee: Business, Innovation, Science and Trade Committee
Conclusion 2
Second Report - The impact of Coronavirus on businesses and workers: interim pre-Budget report
Published 26 Feb 2021
Paragraph 18
Addressed to Department for Business and Trade
Business, Innovation, Science and Trade Committee The impact of coronavirus on businesses and workers All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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.
From: Business, Innovation, Science and Trade Committee, Second Report - The impact of Coronavirus on businesses and workers: interim pre-Budget report (HC 1264), paragraph 18, 26 February 2021
Government response
The government responded to the whole report on 19 May 2021 (deadline 26 April 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response sets out the further support announced since the report, including extended schemes and a new Recovery Loan Scheme, and declines some proposals on eligibility and loan debt.
- On targeted support, it says the new Recovery Loan Scheme will keep an 80% guarantee while "not extending the 100% guarantee for longer than needed", so support is "more targeted going forwards, as recommended by the Committee".
- On gaps in support, it extended the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme until September, but says that proposals for Company Owner Directors have not been taken forward because they rely on self-certification and would risk fraud.
- On commercial rent arrears, it says the best solution is "market led negotiations" between landlords and tenants, but it "is ready to intervene further as necessary" and has launched a Call for Evidence. Tenant protection measures are due to expire on 30 June 2021.
- On Covid loan debt, it states that the loans "are to be repaid" and that the private sector "should be the first port of call" for refinancing, pointing instead to the "Pay As You Grow" repayment options.