Government Financial Support for the Self-Employed and Small Businesses

I have received this answer to my recent Parliamentary Question:

Question:
To ask the Chancellor of the Exchequer, if he will increase the Government’s financial support for (a) self employed and (b) small businesses during the covid-19 lockdown. (41870)

Tabled on: 01 May 2020

Answer:
Kemi Badenoch:

On April 27 the Government announced the new Bounce Back Loans (BBL) Scheme, which will ensure that the smallest businesses can access loans in a matter of just days. These loans will be from £2,000 up to £50,000, capped at 25% of firms’ turnover. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support the smallest businesses in the country. The Government will cover the first 12 months of interest payments and fees charged to the business by the lender.

Small businesses may also be able to benefit from the new Discretionary Grant Fund announced by the Government on 1 May. The Government has provided up to an additional £617m for Local Authorities in England to enable them to make grants payments to businesses which are facing high fixed property-related costs, but have been excluded from the existing grants schemes because of the way they are treated by the business rates system. Local Authorities are responsible for defining precise eligibility for these funds, and businesses will need to apply to their Local Authority in order to receive grants.

Businesses and self-employed individuals may also benefit from a range of other support measures including:

  • The Self-Employment Income Support Scheme (SEISS)
  • A 12-month business rates holiday for all eligible retail, leisure and hospitality businesses in England
  • Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief;
  • The Coronavirus Business Interruption Loan Scheme (CBILS)
  • VAT deferral for up to 12 months
  • The Time To Pay scheme, through which businesses and self-employed individuals in financial distress, and with outstanding tax liabilities, can receive support with their tax affairs
  • Protection for commercial leaseholders against automatic forfeiture for non-payment until June 30, 2020

The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply – https://www.businesssupport.gov.uk/coronavirus-business-support.

Controlling our borders

There is understandable impatience by many over the illegal migrants turning up across the Channel after chancing to people traffickers. It is high time the governments on both sides of the Channel clamped down more effectively on this wicked and dangerous trade.

Whilst governments will want to help anyone in  peril on the sea, they should also wish to send clear signals to all involved that people trafficking will not profit the organisers and will not gain the objective of the customers. If both parties think they will get what they want out of their rash and dangerous actions, they are likely to continue. If the traffickers deliberately put the customers at risk in an unsuitable boat, forcing rescue by government, it is important that the  people trafficker is apprehended and not remunerated.  The UK  and France need to step up joint action, and France needs to try harder to stop the boats leaving their shore or proceeding far out to sea with the danger that introduces.

Prime Minister’s tv address

I am asking about the detail  behind the PM’s statement of approach on Sunday night. In particular

  1. Can Garden Centres open on Wednesday as briefed?
  2. Is it right that Fishing, golf and other sports and pastimes where an individual can avoid contact with others are  now allowed?
  3. Is there any change in the range and purpose of shops which can  now open with suitable precautions?
  4. What are the rules on use of public transport to get to work?
  5. As cars are being encouraged as safer ways of going to work, what additional support will there be to make it easier for cars to get  into towns and cities? What advice is there on staggering hours?
  6. Is there now agreement on the advice and guidance for employers for safe working practices?

Test and trace

In order to get out of lock down the government will want to put in place a system of tracking and testing for the presence of the virus, to ensure those with it self isolate to stop the spread. They will doubtless want to follow WHO advice on these matters.

The WHO proposes that a country combines technology with people driven systems. Technology can help, but not everyone has smartphones and not all smartphone users will want to download the app. Some who do will get flat batteries or forget to switch on from time to time.

In practice any system relies on  people in the country to identify symptoms and self isolate   if there is good reason to think they have the virus. They should now have access to tests so they can find out more quickly than 14 days if they need to continue with their self isolation.

It means a person who does have a test and tests positive for the virus also needs to co-operate over recent contacts. The smartphone app could help. Otherwise they need to  list their contacts to the authorities who can then in turn advise those people. Even with the app there may well need to be interpretation of the contact advised by the phone, as some may not  be serious or lasting contacts, or there may have been some physical separation or barrier which the phone could not see.

As we are dealing with millions of people and possibly thousands of cases, there will be many cases where judgements are made that others may disagree with.  What matters is that overall, the  majority of cases successfully self isolate all those with the disease and those who came into too much contact with them pending their own tests. It also rests on quick reliable and easy tests. I trust the government now has in place these measures which it says it wants, to allow a more general return to work which is vital for livelihoods and the supply of goods and services.

Dear Constituent

The good news is the NHS has coped with the surge in Covid 19 cases in late March and early April. National capacity is Well above the current number of Covid 19 patients, with numbers of new hospital admissions falling. Short of a massive unexpected  surge in cases to levels much higher than early April we can conclude the NHS has the beds and staff to handle this virus. The Royal Berks has plenty of spare Intensive care beds thanks to the efforts to expand facilities. The large emergency Nightingale hospitals mercifully have no new cases to look after.

There is still much to do to cut the death rates further, to limit the spread of the virus and to safeguard those most vulnerable to the severe version of this disease. Thames Valley MPs have a weekly meeting with the Local resilience Forum and with the local police by conference calls to see what needs doing and to tackle Ministers where Central government needs to take action. This week’s meetings reported no problems with the supply of protective clothing and equipment, and demonstrated good progress on expanding the number of tests and test centres, including mobile and home testing. I am in regular and varied contact with Ministers as and when an issue arises that needs UK government involvement.

Government did respond when I passed on – as others doubtless did – the danger of letting elderly patients out of hospital and back to care homes without checking they no longer had the virus. This I am assured has now been sorted out. Those Care Homes that do have cases of the virus now need good infection control to stop it spreading throughout their vulnerable residents. Care Homes are often privately owned and run, but are now being offered national , regional  and local government assistance with protective clothing and training to limit the continued spread in homes that have cases.

I have also raised the issue of the need for the NHS to resume more of its regular work, which government confirms they are ready to do. The NHS assures us it has   very good infection control in general hospitals which undertake a range of work in addition to handling Covid 19 patients. It is important that everyone with a serious condition that could benefit from hospital treatment feels confident to go to hospital to receive it.

I have been critical of the poor quality of the statistics Ministers and the public receive daily to monitor progress and to make decisions about future policy. The estimates of the Transmission rate are very wide – 0.5 to 1.0. This looks at how many people an infected person infects, and needs to be as far below 1 as possible for the disease to wane quickly. The national numbers were not based on  testing of a proper sample of the whole population which should give the best figures over time. I am told this is now being remedied. The figures for deaths have been changed several times, with different definitions and standards for registering a death as a Covid 19 death. This means we do not see an accurate plot of true trends in deaths over the last couple of months. The international comparisons are not comparisons as they do not even adjust for size of populations.

I have put this to Ministers and spoken about it  in the Commons this week. It matters, because government needs to make decisions to get  more people back to work safely, and needs accurate and consistent figures on deaths, transmission rates and hospital use to do so. I have also been working hard on the economic issues of jobs, small business and livelihoods which I will write to you about next week.

VE day

Let us salute  all those who brought about a great victory in 1945. The best way we can remember and honour them is to ensure we cherise and use the freedoms they fought so hard to maintain.

Delivering PPE

I have tabled a couple of questions to try to work out what happened with the much discussed Turkish order of protective clothing for health workers.

It seemed to me that Ministers were desperate to get more protective clothing, hearing of low stocks and possible shortages. They were clearly wanting more to be supplied and happy to provide the cash to pay. They also wanted to make some announcement that illustrated the massive amount of work that was going on to increase the flows into the NHS and care homes.

Presumably the senior managers for procurement volunteered that they had just placed a large extra order with Turkey. I doubt Ministers had arranged it themselves or would have known about it without briefing.

Whatever the involvement of Ministers in actually buying the goods, we do need to know whether they paid in advance, what was said about the specification required, and what if any checks and tests were made before taking delivery of the product.

Of course working at speed with a need for a  big increase in supply mistakes can  be made, but presumably the usual procurement rules applied. It is normal to issue a specification, and inspect or test samples before taking delivery.

It is also interesting that the UK agreed to go and pick up the consignment. What checks were made before loading the planes?

Let us hope this all has a happy ending. If we do not pay for the goods that did not meet specification no great  harm is done. It still leaves me wondering why this particular contract was selected to highlight in the media, and why there were so many problems with it. It seems many other contracts work and the UK is buying a lot more PPE one way or another. Why did officials single this one out for a mention and why did it go wrong?

The German Constitutional Court tries to assert German power over the ECB and the European Court.

In a sweeping judgement the German Court dismissed the judgement of the European Court as a “view”, and gave its own  instead.

At issue is the right of the European central Bank to print billions of Euros, buy up the bonds of member states, and keep interest rates around zero. Many Germans  think this is a very damaging policy, hitting savers and dragging German taxpayers towards responsibility for the debts of other countries with less prudent financial management. Various German interests brought this court case to demand Germany is insulated from the debts of Italy and Greece, and from any inflationary threats were the ECB to overdo the money printing.

At issue is also the powers of the EU Institutions themselves. Elsewhere in the EU – including the UK when we were a member – domestic courts accepted the superiority of the European Court of Justice, and accepted all EU policies and laws emanating from  the Commission, Court and Parliament. The German Court has always tried to maintain a different doctrine, limiting the EU’s powers to the massive range and depth of powers bestowed by Treaty but keeping  open the possibility that there is some power they claim that goes beyond their Treaty entitlements.

The German Court has up to this point found very little and has not been that willing to pursue German powers instead of EU powers, as the German Court generally supports the EU federal scheme. That is what makes this judgement so much more revolutionary, claiming as it does that the ECB and EU has acted ultra vires in such a dismissive judgement.

It is one  thing to say this, and another to turn it into any kind of reality. The detail of the judgement gives the ECB a three month period to show it has used its powers proportionately. Only if the ECB fails to satisfy the German Court and government on that matter will the judgement become a declaration of some independence, and only then will the ECB have to change its bond buying policy to avoid schism.

Maybe this German judgement will turn out to be just another “view” in a bitter row about how much money the ECB can print and how much of a free ride it gives to financially weaker countries. It is likely to mean more Euro austerity and smaller increases in bond buying, as the EU moves to head off a more radical declaration of German independence in these economic areas.

Three tests to relax lockdown?

Each day we can witness some graphs of the  progress of the virus in the UK. Two of the series of numbers that are produced are likely to  be an important part of the decision this week about whether and to what extent the current strict controls on our work and lives are lifted.

The aim of saving the NHS is embodied in the graph of use of NHS Intensive Care beds and patient numbers. This graph has been coming down for some time, and is now well below NHS enhanced capacity to cope. So much so, we are told the emergency large hospitals built to handle more Covid 19 cases will be put on hold with no patients.  The government should state that short of a major upsurge in  cases way beyond the first surge, the NHS can now cope.

The aim to save lives is charted by the death rate. The graph of this is also now coming down, despite the changes to the numbers that boosted them. Given the decline in patients admitted with the disease to hospitals you would expect a fall in hospital deaths.

This leaves the third uncharted number that Ministers place great stress on – R or the rate of transmission. The absence of a regularly updated graph of R is disappointing, as we need to see how it changes over time. The verbal indications from the advisers is that it has fallen a lot and is now under 1, as it needs to be to slow the spread of the infection. Ministers should ask for more information on how R is calculated and how it has been trending, and tell the rest of us. It seems that much rests on the particular calculation and estimation of R and its trends.

I was pleased to read that they are now going to sample test the population for the presence of the virus, which should give a more reliable figure for R when you have several sampled tests over time. I trust this will help guide future changes to the controls on us but not delay getting  more people back to work safely as soon as possible. Our prosperity and liberty requires us to relax these controls and there is now the opportunity to do so.

Update from South Western Railway

I have received this update from South Western Railway:

Dear Sir John,

I am conscious that many of you have been contacted by constituents concerned that they have not received refunds on their season tickets. I thought it would therefore be useful to give you an update on where we are, the challenges we face and what we are doing to ensure customers receive their refunds are quickly as possible.

We value all our customers and understand the ongoing uncertainty that COVID-19 is creating for many families whose personal circumstances may have changed dramatically in recent weeks. We understand how important it is for people to receive their refund, but we also need to ensure the safety of our colleagues by following the Government’s guidelines on social distancing.

As you can imagine, we have received an exceptionally high number of requests for refunds – around 26,000 so far. In order to process these refunds, we have opened a dedicated refund processing centre, where our team is working from 6am to 10pm every day of the week, including on bank holidays. We are processing every single request as quickly as possible, however every refund is different, and calculating and processing these payments takes time.

We have recently expanded the refund processing centre by opening a second space to allow more members of the team to come in, and by allowing other colleagues to work remotely. This has enabled us to move from processing around 500 refunds a day, to around 700 a day last week. We expect a further increase in the daily total this week.

The refund requests are being dealt with in order of application date, but with season tickets being prioritised due to the higher values involved. Currently, we have around 16,500 refunds outstanding, with the average time for a claim to be processed standing at around 33 days (five days longer than the usual 28 days).

I know some of your constituents are also waiting for the promised December strike compensation. I want to reassure you that they will get the money to which they are entitled. It is just taking longer than we had hoped, as we have had to prioritise season ticket refunds, because we know how important it is to customers whose circumstances may have changed in recent weeks.

These are unprecedented times and we at SWR are doing everything we can to meet the joint challenge of keeping key workers moving, while also getting refunds back to customers who are no longer travelling, and instead are staying home and saving lives.

Please do not hesitate to contact me at should you have any further questions.

Yours sincerely

Mark Hopwood
Managing Director
South Western Railway