Protecting Pubs
South Cambridgeshire is home to many fantastic pubs and eateries, and no-one wanted to see them suffer under new national restrictions. I understand that many pub landlords will be concerned about the weeks ahead.
While the closure of pubs will be difficult to bear, the Government is providing significant support for hospitality businesses over the next few weeks. Every business forced to close will receive grants of up to £3,000 a month under the Local Restrictions Support Grant and the Government is providing local authorities with a further £1.1 billion to support businesses in their area.
I welcome that the Coronavirus Job Retention Scheme has been extended until March in response to new national restrictions, and to give people and businesses across the whole United Kingdom the certainty they need over what will be a difficult winter. Under the extension the government will pay 80 per cent of wages up to a cap of £2,500, with employers paying employer National Insurance Contributions and pension contributions only for the hours the employee does not work. Flexible furloughing will be allowed in addition to full-time furloughing.
I am glad that the selling of takeaway food and alcohol is permitted. I note that the sale of takeaway alcohol is limited to delivery or pre-order collection and should be done in accordance with other restrictions and licensing requirements.
At this time of uncertainty, I believe that all involved must also consider adjusting restrictions as new evidence emerges. I am glad that evidence continues to be collected on the impact of the pandemic on the hospitality sector and we must look forward to an easing of restrictions as soon as possible.
Electrical Safety First Campaign: Regulation of Online Market Places
I am familiar with Electrical Safety First's campaign for better regulation of online marketplaces. As you will know, the UK has a strong product safety system to ensure products are safe before they can enter the market, and this includes products sold online.
I understand your concerns regarding this issue, and I take the problem of counterfeit electrical goods seriously. It is therefore welcome that the Government is working across the industry and with law enforcement colleagues on a number of initiatives to tackle this issue. You may also welcome the fact that officials in government are working with representatives from online platforms to discuss the availability of counterfeits on their platforms. Action is also underway to ensure a co-ordinated law enforcement response against the sellers of these counterfeits.
In addition to this action, the Office for Product Safety and Standards (OPSS) is reviewing product safety legislation to make sure the existing legislative framework is adequate. This is due to changes to traditional supply and distribution chains as a result of e-commerce.
I will continue to follow the developments in this area and in particular the OPSS review into the current product safety legislative framework. This is an important issue and the Coronavirus pandemic highlights how more and more consumers are relying on e-commerce.
Cuts to Beer Duty
In 2013, the Government took the decision to end the beer duty escalator, and beer duty has been frozen or cut several times since then. Duty on spirits has been frozen over the past two years. As a result of these changes, a typical pint is cheaper than it would have been had these measures not been introduced. I share your concern about the future of pubs and the hardship caused by the coronavirus outbreak. The steps taken by HMRC to make it easier to claim back the duty on any beer thrown away as a result of pub closures were a timely and sensible intervention.
I welcomed the announcement that for only the second time in 20 years every alcohol duty has been frozen, meaning that this freeze covers duty on spirits, beer, wine, and cider.
We have some truly fantastic pubs across South Cambridgeshire, and I want to see the Government continue to support pubs and keep costs down for consumers. Any decision to modify alcohol duty in the future is a matter for the Treasury. I have ensured my colleagues are aware of the points you raise and reminded them of the importance of local pubs in our communities. There is a broad recognition of the need to reform the current duty system to support the alcoholic drinks and pubs sector in the longer term, and a call for evidence is due to be published before the end of 2020.
Will You Oppose the 10pm Curfew?
The 10pm closing time is part of a package of measures designed to strike a balance between what is reasonable and proportionate to slow the spread of the virus and taking into account usual human behaviour. While I am mindful of statistics that the hospitality sector has highlighted and that we learn more daily, there is strong evidence that social mixing encourages the spread of the virus and we know that if left unchecked, this will lead to a greater level of hospitalisation and tragically a greater level of deaths.
Similar 10pm closures have been enforced in local lockdowns in other parts of the country, which I am told have been one measure among others deemed successful in reducing rates of infection. There are some types of social events that have been deemed excessive and risky, but there are other types of social contact which, it has been assessed, can appropriately be allowed. It is important to strike the right balance here. The belief is that in some environments, especially later in the evening, people can potentially become a bit more relaxed and forget the social distancing and hand hygiene guidelines. As Professor Whitty has said, the solution to this crisis is a collective effort. It is about what we can all do, and notably what we can do to help protect others.
We have some fantastic pubs across South Cambridgeshire and throughout the pandemic I have been working alongside them to give them whatever support they might need. I would hate to see any of these establishments close and so fully understand the concerns that you have about the impacts of the curfew. I will endeavour to raise with ministers at the next opportunity.
No-one underestimates the challenges the new measures will pose to many individuals and businesses. I know it will not be easy, but I am clear that further action must be taken to control the resurgence in cases of the virus and protect people and the NHS.
Excluded UK
I am very sorry to learn of the challenges many have been facing and hope these will be swiftly resolved as we move out of the lockdown measures. During the crisis, I have assisted with a considerable number of business and employment support enquiries. In addition to working with councils, banks and the Government on resolving these, I have also raised with my ministerial colleagues the cases of those who have not qualified for one scheme or another to ask if further support could be offered.
When any government reacts at pace to a crisis of this magnitude, the measures must by nature be broad and generalised if they are to be introduced with effective speed. As such, the Chancellor has been clear that the state could not sustain supporting everyone during such a serious challenge to the economy. Nevertheless, I recently asked him in the Commons Chamber to consider what further support might be required for those in these situation and, as a member of the Treasury Select Committee, please be assured that I will continue to press where I can on this.
The Government must also begin to prioritise planning for the economic challenges the country faces in the coming months, but I very much hope business will improve for all affected as swiftly as possible during that time.
Financial support for those shielding from Covid-19
It is crucial that those at most risk in our society are protected in order to safeguard their own health and prevent the NHS from being overwhelmed. I am also greatly saddened to hear of financial difficulties at this time. No one following Government instruction, should be penalised for their efforts.
I am aware that the advice indicates that employees, unable to work because they are shielding in line with public health guidance, could be placed on the Coronavirus Job Retention Scheme, such that their employer could claim a grant that covers 80 per cent of their usual monthly wage, up to £2,500 a month. If you have been placed on furlough, I urge anyone on furlough to contact their employer to alert them to the fact that they are shielding in line with public health and Government guidance and therefore continue to be eligible for the scheme.
I, of course, do not wish to see anyone put at any risk as the lockdown is eased. I have been reassured by colleagues in Government that they are following the best medical advice for getting people back to work. I strongly encourage employers who employ people with blood cancers to utilise the Coronavirus Job Retention Scheme (CJRS) for as long as possible until the safety of such employees can be guaranteed.
The CJRS has been extended until October and it should be used where necessary. I would also like to take this opportunity to remind employers that they have a legal responsibility to ensure their employees and other people on the premises are protected.
#LetUsDance
Unfortunately, due to the nature of night clubs, it is unlikely they will be able to open in the very near future. However, I am proud of comprehensive support packages available for night clubs.
I appreciate that it has been a particularly challenging time for many sectors of our economy, including those operating in the night-time industry, as a result of the Covid-19 outbreak. I sympathise with anyone who is currently facing redundancy during this difficult time.
It is important that as our economy begins to recover, with more businesses reopening and staff returning to work, that there is a welcoming and safe night-time economy. This economy is hugely important to our entertainment and culture in the UK, and it is the UK's fifth-largest sector.
To help the smallest businesses operating in the night-time economy, who may be most in need of support, those in the retail, hospitality or leisure industries with a rateable value under £51,000 may be eligible for grants from the Retail, Hospitality and Leisure Grant (RHLG) scheme. The RHLG scheme gives a grant of £10,000 to eligible businesses with a rateable value of up to £15,000, and a grant of £25,000 to an eligible business with a rateable value of over £15,000 but under £51,000. The eligibility thresholds for the RHLG have remained the same since the scheme was announced and the Government has worked closely with local authorities who allocated the funds.
Furthermore, all businesses operating in the retail, hospitality and leisure sector can benefit for a business rates holiday for 2020-21 as the Chancellor rightly removed the previous threshold on eligibility for this support.
To support jobs, both the Coronavirus Job Retention Scheme (CJRS) and the Coronavirus Self-employed Income Support Scheme (SEISS) provide a taxable grant worth 80 per cent of an employees’ wages, or a self-employed person’s average monthly profits over the last three years, up to £2,500 a month. I welcome the extension of SEISS which means that self-employed individuals can qualify for a second and final taxable grant, when the scheme reopens for applications in August.
This second grant will be worth 70 per cent of average monthly trading profits, capped at £6,570 in total, and according to the same eligibility criteria as the first grant. This extension matches the support available under the CJRS as the Chancellor announced that the CJRS will continue until the end of October, with new flexibility introduced from August to also help get employees back to work. This includes furloughed workers being able to return to work on a part-time basis, with employers being asked to pay a percentage towards the salaries of furloughed staff.
I will continue to raise industry-specific concerns at the highest level to make sure that senior Ministers are aware, and I will follow any developments closely.
Supporting independent breweries
South Cambridgeshire is home to some fantastic independent breweries, like BrewBoard, and the renaissance in local breweries is something I have been glad to see over the last few years.
As restrictions have now been eased across the country and pubs re-opened, I am glad that breweries have also resumed doing what they do best – creating the best ales, lagers and IPAs the country has to offer.
I am encouraged by the generous financial support provided to breweries that have been disrupted by the pandemic. Grants have been made available through the Retail, Hospitality and Leisure Grant Fund, the Small Business Grant Fund (SBGF) and Local Authority Discretionary Grants Fund to cover a variety of costs.
The unprecedented Job Retention Scheme has protected over 9 million jobs and will wind down gradually in October. You may be interested to know that businesses like breweries that continue to employ furloughed employees will receive a £1,000 bonus through the Job Retention Bonus, ensuring jobs are recovered and not lost.
I welcome the Chancellor’s announcement that all alcohol duty has been frozen for the tenth year in a row, on top of the business rates holiday for the 2020-21 financial year as well as the option to defer some VAT payments until 31 March 2021. The temporary cut to VAT from 20 per cent to 5 per cent for all food and non-alcoholic drinks will create additional footfall from 15 July 2020 to 12 January 2021 to restaurants, pubs, bars, cafés and similar premises across the UK, helping kickstart the demand side. The Government has also relaxed the process for businesses to claim back duty on spoilt beer, wine and cider, providing some return for breweries.
I have ensured Ministers are aware of the arguments for bespoke support for breweries and will continue to follow this matter closely.
Sunday trading laws
While the introduction of shopping slots for key workers and the vulnerable have been welcome, I have raised with colleagues the question of extending Sunday Trading.
The Employment Rights Act 1996 recognises Sunday as a special day for many people and entitles employees in shops and betting shops to opt out of working on Sunday if they do not wish to work on a Sunday. Unless Sunday is the only day they have been employed to work, all shop and betting shop employees can opt out of Sunday working at any time by giving their employer three months’ notice, even if they agreed to it in their contract.
I understand that some large establishments support a temporary relaxation of Sunday Trading laws during the Covid-19 crisis. My Ministerial colleagues have assured me that they are aware of this and keeping the law under review, including the impact on workers.
Protecting local and independent newspapers
We have some fantastic independent, local newspapers in South Cambridgeshire, such as The Royston Crow, The Cambourne Crier and the Cambridge Independent. As someone who has had a career in journalism, I appreciate just how important independent newspapers are.
I know that Ministers share your desire to help independent publications through this period of hardship and I have been assured that they are in regular dialogue with publishers to ensure that the Government response to the challenges they are facing is as effective as possible.
I am very pleased that a variety of support has been made available for local newspapers. Importantly, this includes the designating of journalists and ancillary staff as 'key workers', meaning they have been able to keep working and have access to childcare and education for their families.
A major coronavirus public information campaign has been launched, through which Ministers have sought to maximise advertising opportunities for news outlets. Worth up to £35 million in advertising revenue, this campaign brings together over 600 national, regional and local titles across England, Scotland, Wales and Northern Ireland to reach 49 million people a month.
As with any media planning approach, titles have been selected on their ability to engage with audiences and to ensure value for money, reach and targeting efficacy. It is my understanding that the vast majority of titles involved are local papers and additional titles have been selected in order to further reach priority audiences including BAME and older men.
The Chancellor also brought forward the zero rating of VAT on all e-publications to the 1st May - seven months ahead of schedule. The Government expects the tax relief to be passed on to consumers in the form of reduced prices, and publishers should benefit from increased sales.
Independent publishers may also benefit from several measures included in an unprecedented business support package, such as the Coronavirus Business Interruption Loan Scheme, Job Retention Scheme, Bounce Back Loans, VAT deferrals, and coverage of statutory sick pay costs.
Coronavirus - living costs
The steps we need to take to confront this public health emergency are having a profound effect on our economy. I know that many people now fear losing their jobs, being unable to pay their rent or mortgage and bills.
The Chancellor of the Exchequer has announced a Coronavirus Job Retention Scheme (CJRS), a UK-wide scheme to pay a grant to any business to retain furloughed non-working employees. These grants will cover 80 per cent of the salary of retained workers up to a total of £2,500 a month each. Ministers aim to make it available before the end of April, and it will cover at least the next three months.
The Self-Employed Income Support Scheme, which seeks to match the support already afforded through the CJRS by providing a taxable grant worth 80 percent of a self-employed person’s average monthly profits over the last three years, up to the same limit. Income Tax Self-Assessment payments due in July 2020 will be deferred until January 2021, further benefitting millions of self-employed taxpayers.
Extra support is also being provided by the welfare system through Working Tax Credit (WTC) and Universal Credit (UC). Both the UC standard allowance and the WTC basic element are being increased by £1,000 per year for the next 12 months. This equates to an additional £86.67 per month, on top of the planned annual uprating.
The country has never faced an economic fight like this one but is well prepared. Ministers are committed to giving every British citizen the tools they need to get through this.
Beer Duty
In 2013, the Government took the decision to end the beer duty escalator, and beer duty has been frozen or cut several times since then. Duty on spirits has been frozen over the past two years. I have spoken with colleagues at the Treasury, who assure me that as a result of these changes, a typical pint is cheaper than it would have been had these measures not been introduced.
I welcome the announcement that for the second time in 20 years every alcohol duty has been frozen, meaning that duty on spirits, beer, wine, and cider will be frozen.
I want to see the Government continue to support pubs and keep costs down for consumers. Any decision to modify alcohol duty in the future is a matter for the Treasury. I have ensured my colleagues are aware of the points raised on this issue and reminded them of the importance of local pubs in our communities.
Huawei & 5G
I am assured that the Government’s decision on Huawei and other high risk vendors was taken on the basis of national security. Widespread deployment of 5G and full-fibre networks is, of course, a primary objective of Government policy, however I am clear that this must not be achieved in a way that compromises our national security. I know that Ministers share this view.
It is essential that our digital networks are both secure and resilient, and this is why the Government undertook a comprehensive review of the supply arrangements in our 5G and full fibre networks. The Review concluded that it will be necessary to put in place additional controls on high risk vendors, such as Huawei, that pose a higher risk to our 5G and full fibre networks. For both of these networks, high risk vendors should be excluded from those parts of the network that are critical to security. The presence of high risk vendors should also be limited in other parts of those networks, such as sensitive geographic locations.
I am pleased that this decision has been taken with national security as the foremost consideration. It will allow us to deliver world leading digital infrastructure for the UK, meaning our economy will be best placed to take advantage of the many opportunities of the digital economy. Further, I understand that over time it is the intention for the market share of high risk vendors to be reduced, as market diversification takes place
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