UK Parliament / Open data

Economy Update

Proceeding contribution from Steve Barclay (Conservative) in the House of Commons on Wednesday, 16 June 2021. It occurred during Ministerial statement on Economy Update.

The Scottish Government are still not using all the powers available to them on tax and welfare, and I always feel that before they seek further powers it would be useful for them to use fully the ones

they already have. I found it slightly odd that the hon. Lady said that not a penny of support had been announced, because the whole point of the package that was announced was the extensive support going on until the end of September. She seems to be ignoring that and suggesting that everything should start afresh from today.

The hon. Lady mentioned business rates, which I picked up on earlier. This financial year, over 90% of businesses in the retail, hospitality and leisure sector that benefited from the 100% business rates holiday last year will receive a 75% cut in their business rates for the full year to March 2022. Let me just put that in context. In that last year, that tax cut cost £10 billion. This year, it is an additional £6 billion. The hon. Lady says that not a penny has been announced, but there is a further £6 billion of tax cuts on business relief this year in addition to last year. I think it is worth remembering the wider picture of the £352 billion of support.

The hon. Lady mentioned universal credit. We have been very clear from the start that it was a temporary uplift; my right hon. Friend the Chancellor set that out at the time. She also mentioned delaying furlough. As my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) mentioned earlier, there are good reasons why it is not in people’s interests to be on furlough for extended periods of time if their job has disappeared and is not going to come back and if there are other businesses that want to employ that labour. The furlough has achieved its main purpose in retaining the link between labour and business and allowed businesses to bounce back better as a result. So before asking for new powers, the Scottish Government should be focusing on the delivery of their response to covid and recognising the fact that we have been able to respond in this way because we have the strength of one United Kingdom. It is through this wider resilience that we have been able to put together a package of the size that the Chancellor has done.

Type
Proceeding contribution
Reference
697 cc312-3 
Session
2021-22
Chamber / Committee
House of Commons chamber
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