I appreciate your concern with reports about the future of Channel 4. While I completely agree that access to a wide variety of channels for news and entertainment is an important feature of our broadcasting landscape, I also recognise that in recent years that landscape has completely changed.
As you might be aware, Channel 4 is entirely commercially funded, but it has been publicly owned since it began broadcasting in 1982. The main reason it was set up as a publicly owned, commercially run station was to provide greater choice. Four decades later, however, the broadcasting landscape is unrecognisable. That is why I believe it is crucial that a future ownership model (whereby Channel 4 keeps its public service remit) is considered to ensure more content, more jobs, and a more sustainable future for the broadcaster.
I warmly welcome that the Department for Digital, Culture, Media and Sport has now launched a public consultation on the future ownership of Channel 4 as part of the Government’s review of public service broadcasting. The consultation will consider both the ownership and remit of Channel 4, ensuring its future success and sustainability. For further information on the consultation, which will close on 14 September 2021, and guidance on how to respond, please search: https://www.gov.uk/government/consultations/consultation-on-a-change-of…
I have also been assured that the review will come ahead of the broadcasting white paper, due to be published in the autumn. The white paper will consider the future of the country’s broadcasting landscape with the aim of making sure it serves listeners and viewers on all platforms and across the entire UK.
Private Companies & ICBs
I welcome the intention, through the Health and Care Bill, to develop more integrated care between the NHS, local government, social care providers and other partners to deliver better integration of health and care services on the ground. The reforms proposed in the Bill will continue to improve the quality and sustainability of NHS services and outcomes for patients.
Service provision by the independent and voluntary sectors has been, and continues to be, an important and valuable feature of our healthcare system, which I fully support. Safeguards are already in place to ensure that the interests of the public and the NHS are always put first. The ICB chair would have the power to veto members of the board and there are robust requirements on ICBs to manage conflicts of interests.
That said, I do appreciate that there are concerns about private sector involvement in ICBs. It is important that people are assured that the work of ICBs will be driven by health outcomes, not by profits.
I know that the Bill does not allow private sector providers to influence, or to make, decisions on spending, but it is welcome that the Government has committed to putting that beyond doubt. They will bring forward an amendment at the next stage of the Bill’s passage through Parliament to protect the independence of ICBs by preventing individuals with significant interests in private healthcare from sitting on them. I know that ministerial colleagues will be working to ensure that any amendment is appropriately worded and does not have any unintended consequences. I look forward to seeing their proposed amendment in due course and can assure you that I will scrutinise its contents closely.
Bounce Back Loans
The BBLS helped to support small and medium-sized businesses which had been adversely affected by the Covid-19 outbreak. Under the BBLS, a business could have borrowed between £2,000 and 25 per cent of their turnover, up to a maximum loan of £50,000. The loan was 100 per cent guaranteed by the Government and there was no interest to be paid, nor fees, in the first 12 months. After this, the interest rate is 2.5 per cent.
The BBLS closed to new applications and top-ups on 31 March 2021 and, as of 31 May 2021, the scheme had supported 1,560,309 businesses with support totalling £47.36 billion.
The original Government-backed loan schemes have now been replaced with the Recovery Loan Scheme which launched on 6 April 2021. Under this scheme, eligible businesses can apply for loans between £25,000 and £10 million with an 80 per cent Government guarantee. Once received, the finance can be used for any legitimate business purpose, including growth and investment.
I am aware of calls from businesses to extend the 12 month no repayment benefit. I am pleased that financial support has been expanded, including access to the Recovery Loan Scheme and the extension of the Coronavirus Job Retention Scheme. I am not aware of any forthcoming plans to extend the no repayment period. As the Pandemic appears to be coming to its end, I am afraid that the measures associated with it must do also.
Household Debt & COVID-19
Problem debt is often difficult to escape and can have a devastating impact on existing issues including family problems and poor mental health. It is only right that people who fall into problem debt are helped to find a sustainable, long-lasting plan to solve their debt problems. That is why I welcome the action being taken to protect those who find themselves in problem debt through a new breathing space scheme.
This scheme has two parts; a breathing space period and a statutory debt repayment plan. Together, these two aspects of the scheme protects debtors from creditor action, help them get professional advice on their debt problems, and help them pay off their debts in a sustainable way. Throughout 2020-21, colleagues in the Treasury invested an additional £12.5 million in order to implement breathing spaces as soon as possible.
The breathing space provides debtors with a 60-day period in which interest and charges on their debts are frozen and enforcement action from creditors is paused. During the time, debtors will have to seek professional debt advice to find a sustainable solution, encouraging them to seek advice earlier and give them the headspace to identify the right debt solution for them. The statutory debt repayment plan is a new debt solution that extends the breathing space protections to debtors who commit to fully repaying their debts in a manageable timeline.
On the wider issue of helping those who find themselves in problem debt, I am glad that an extra £37.8 million support package has been made available to debt advice providers this year and the government-commissioned Money Advice Service is spending over £56 million to provide debt advice to over half a million people in the same period.
I wholeheartedly understand that access to cash remains vital to the day-to-day lives of individuals in local communities across our country and particularly to those in rural areas.
At present, LINK, the scheme responsible for ATM provision in our country, provides a top-up subsidy for free-to-use ATMs in remote areas. I was glad to hear that the upper limit on these top-up subsidies rose from 30 pence to £2.75. This is expected to benefit up to 3,500 free-to-use ATMs across the country. I also welcome that, as of September 2019, there were approximately 45,000 free-to-use cash machines across the UK, which represents a 13 per cent increase from a decade ago.
UK Finance launched its Community Access to Cash initiative to help local communities to identify and secure access to cash and payment services. This follows UK Finance’s engagement with consumer representatives, local authority representatives and market participants on the cash needs of local communities.
I have been reassured by the fact that the Economic Secretary to the Treasury met key parties of interest so that communities can engage with UK Finance to ensure that individuals have access to cash. The Payment Systems Regulator has previously used its power to hold LINK to account over its commitment to communities, ensuring that there is a continued high level of access to cash.
I welcome that the Financial Conduct Authority has been made ultimately responsible for ensuring the cash system works for consumers and businesses. Following this, in September 2020, the FCA published guidance setting out expectation that firms should consider the impact of branch and ATM closures on their customers’ everyday banking needs and consider the availability and provision of alternatives.
I also strongly welcome that the Government legislated through the Financial Services Act 2021 to facilitate the widespread adoption of cashback without a purchase. Further work is ongoing to prepare future legislation designed to protect access to cash and ensuring that the UK’s cash infrastructure is sustainable for the long term.
I welcomed the announcement in July 2020 of the establishment of a Joint Authorities Cash Strategy (JACS) Group which brings together representatives of our key financial regulators to provide joined-up and comprehensive oversight of the UK's cash infrastructure. The JACS Group places a particular emphasis on user needs and the changing nature of cash usage.
Proportional Property Tax
Council tax is a local charge for the use of local services. The current banding system reflects that larger homes make slightly greater use of local services, but intentionally, it is not a poll tax nor a wealth tax.
For the past decade, the Government has ensured that local taxpayers are able to veto excessive council tax increases in a local referendum. The 2019 manifesto, upon which I stood, re-affirmed support for this democratic check and balance, which has helped ensure that council tax remains lower in real terms than a decade ago.
I would note under the proposals by this lobbying group, many hard-working families and pensioners would see soaring bills, both within local authorities and across the country. South Cambridgeshire, with high property prices, would be one of the worst hit areas.
People who are asset rich but cash poor – ie those who live in valuable houses with modest incomes – such as pensioners or people on stable salaries living in areas that happen to have house price rises, will face high taxes they cannot pay and will be forced out of their homes
The existing single person discount would be abolished, hitting widows and widowers the hardest. Such a house price tax fails to take into account that single person homes make reduced use of local services.
Annual revaluations would mean home improvements would be taxed, punishing people for doing up their home - a new tax on extensions and loft conversions. Under the council tax system, material improvements are only taken into account when the home is sold.
There would be no limit on the increase in taxes. When house prices rise, it would be very easy for a government or council to use that increase to hike the overall tax take by stealth, as bills would be based on house prices
I have explained more why a proportionate property tax would be economically disastrous and extremely unfair here: A proportional property tax would be a disaster | The Spectator
I also note that the Government has stated it does not support such a policy and has criticised proposals for such house price taxes in a Parliamentary debate.
I hope this explains why such an idea is seriously misguided.
Pensioners in Poverty Campaign - Pension Credit
I am committed to ensuring that older people receive the support they are entitled to, so they can enjoy dignity and security in their retirement. That is why I am glad the Department for Work and Pensions (DWP) engages with people who may be eligible for benefits at pivotal moments in their lives, such as when they claim State Pension or report a change in their circumstances.
Speaking with colleagues at the DWP, they assure me that they use a wide range of channels to communicate information about benefits to potential customers, including gov.uk, leaflets and telephone. DWP staff in Pension Centres and Jobcentres, including visiting officers, are able to provide help and advice about entitlement to benefits, as are Local Authority staff who administer Housing Benefit. People can also use the Pension Credit calculator (https://www.gov.uk/pension-credit-calculator) to check if they are likely to be eligible and get an estimate of what they may receive. People wishing to claim Pension Credit can call 0800 99 1234 or can claim online.
In February 2020, the DWP launched a nationwide campaign to raise awareness of Pension Credit. The aim of the campaign was to encourage those over State Pension age to check whether they are eligible. It made clear that having savings, a pension or owning a home are not automatic barriers to receiving Pension Credit, as well as explaining that even a small award of Pension Credit can provide access to a range of other benefits such as help with rent, council tax reduction schemes and heating costs.
I am also aware that letters to 11 million pensioners about increases in the State Pension now include an accompanying leaflet with specific information about Pension Credit.
One of the best ways to reach eligible customers is through their community, which is why the DWP developed the Pension Credit 'toolkit' as an online resource for people in order to encourage take-up. It includes material for this year’s awareness campaign, as well as resources and suggestions to assist agencies and welfare rights organisations to encourage Pension Credit take-up and help pensioners apply for Pension Credit. It can be found at: https://www.gov.uk/government/publications/pension-credit-toolkit.
I hope this reassures you of the efforts being made to encourage people to find out if they are eligible for Pension Credit, but I will continue to engage with the DWP and follow this issue closely.
Collapse of the Football Index
I share concerns regarding this incident, and I would like to offer my deepest sympathies for those who have been affected. As you might be aware, the Government has announced that an independent expert review of the regulation of the Football Index gambling product will take place, which follows the Gambling Commission's decision to suspend the operator's licence while it carries out an investigation. The Gambling Commission has also made clear that it expects the operator to focus on treating customers fairly.
It is my understanding that when the Gambling Commission licenses an operator, they take into account suitability, including their financial circumstances. They do not oversee their businesses on a day-to-day basis or monitor the financial health of operators directly in real time. I do, however, recognise the distress caused by the financial affairs of Football Index, and I am pleased that the Minister for Media and Data, John Whittingdale, and the Secretary of State, Oliver Dowden, have met with the Gambling Commission on multiple occasions to receive urgent reports. I will closely be following this matter and it is my hope an appropriate resolution can be found.
In addition, I warmly welcome the fact that the Department for Digital, Culture, Media and Sport has appointment Malcolm Sheehan QC to lead an independent expert review of the regulation of the Football Index gambling product. I understand that he will provide an independent expert account of the actions taken by the Gambling Commission and other relevant regulatory bodies, and consider the lessons to be learnt for the future. He will have access to all the necessary information held by government and regulatory bodies to conduct the review. For further information on the review and guidance on the Terms of Reference, please search: https://www.gov.uk/government/publications/review-of-the-regulation-of-betindex-limited-terms-of-reference/terms-of-reference-independent-review-of-the-regulation-of-betindex-ltd
This independent review is separate to that investigation being carried out by the Gambling Commission and will be carried out and report in a way which will not compromise it. Its findings will also form part of the evidence informing the Government's Review of the Gambling Act 2005.
In December 2020, the Department for Digital, Culture, Media and Sport announced a major and wide-ranging review of gambling laws to ensure they are fit for purpose. This review will look in detail at how gambling has changed in the last 15 years, examining gambling advertising as well as the Gambling Commission’s role and powers. The findings will then be used to inform any changes to the Gambling Act 2005 to ensure customer protection is at the heart of the regulations, while giving those that gamble safely the freedom to do so.
Save Our Books Campaign - Theft of Intellectual Property
I take the protection of IP seriously and I am pleased that a range of initiatives have been designed to reduce IP theft.
Officials from the Intellectual Property Office (IPO) have been holding roundtable meetings with representatives from online platforms and rights holders to discuss the availability of counterfeits on their platforms and to help co-ordinate law enforcement action against sellers.
A Police Intellectual Property Crime Unit (PIPCU), run by the City of London Police, was launched in 2013. The PIPCU is dedicated to tackling serious and organised online piracy and counterfeiting, affecting digital and physical goods, and protecting legitimate UK businesses.
In the Trade and Cooperation Agreement (TCA) between the UK and EU, it included commitments on IP that provide high standards of protection for, and enforcement of, IP rights. These include registered IP rights such as patents, trade marks and designs, and unregistered rights such as copyright, trade secrets and unregistered designs. These provisions refer to, and in many areas exceed, the standards set out in international agreements such as the WTO Agreement on Trade-Related Aspects of Intellectual Property (TRIPS) and World Intellectual Property Organisation (WIPO) treaties. The TCA includes mechanisms for cooperation and exchange of information on IP issues of mutual interest. Furthermore, the TCA retains regulatory flexibility for both sides, enabling the UK to develop an IP system in line with our domestic priorities.
Redundancies & Keyworkers
Like you, I regret any loss of jobs in the UK as a result of redundancy, and I very much appreciate the efforts of BT staff to keep communication lines open during a period where many people have relied on them to work or learn from home.
I have been assured that my Ministerial colleagues regularly engage with BT about a range of topics, including their UK workforce, at both the Official and Ministerial levels. Ultimately, however, BT is a private company so decisions about its structure and employment are a matter for its Board. I am encouraged that BT's approach is to minimise redundancies through natural attrition and to provide opportunities to re-skill and redeploy workers whenever possible.
I know that Ministers are committed to boosting job creation. The 'Plan for Jobs' announced during the Summer Economic Update makes up to £30 billion available with a clear goal to create, protect, and support jobs, and to spur the UK's recovery following Covid-19. The plan includes three main points: supporting people to find the jobs that are out there, creating new jobs through investing in our infrastructure and housing, and protecting jobs by revitalising the hard-hit sectors upon which many jobs depend.
More generally, the Government is committed to delivering nationwide gigabit connectivity as soon as possible, and is investing £5billion to deliver gigabit-capable services to the hardest to reach parts of the UK. Nationwide gigabit rollout will create thousands of high-quality jobs in the UK and help the country build back better from the Covid-19 pandemic.
Renovations at Downing Street
Downing Street is an historic working complex containing several buildings and two ministerial residences. The Government is legally required to maintain Downing Street buildings to standards appropriate to their Grade I and Grade II listed status. As I am sure you can imagine, their status as well as security and other factors, can lead to a significantly increased cost for maintenance and repairs.
Prime Ministers across successive governments have been provided with an allowance of up to £30,000 a year to contribute to the maintenance and furnishing of residency in the Downing Street estate. The cost of the wider refurbishment you mention has been met by the Prime Minister personally.
At all times, the Government and Ministers must act in accordance with the appropriate codes of conduct. There are now three separate inquiries into this matter, including by the Electoral Commission, and we must await the outcome of their findings. Subject to advice from the new Independent Adviser on Ministerial Interests, Lord Geidt, the Prime Minister will be making any necessary declaration in line with the requirements of the Ministerial Code.
The overriding aim throughout has been to reduce the need for taxpayers’ money to fund the works and maintain a listed building owned by the nation. Matters concerning current works to the Downing Street estate, including residences, more broadly are covered in the Cabinet Office annual report and accounts.
Public Sector Pay-Rises: NHS Staff
I believe that the passion, commitment, and specialist knowledge of our NHS staff is part of what makes our NHS so special. In particular, I recognise the sacrifice, commitment and dedication of our NHS workers over the past year. I believe it is important to honour this, but I know that pandemic has had real consequences on public finances which cannot be ignored.
I have been assured that what the Government has tried to do with its recommendation for a 1 per cent pay rise for NHS wage bill is to give NHS staff as much as it can at the present time. It is also worth seeing this in the broader context - all but the lowest paid workers across the public sector have had their pay frozen for 2021/22. Across the private sector, many workers have suffered really substantial pay cuts this year. All the job losses arising from the pandemic are among private sector workers. Pay across the public sector on average is already above pay in the private sector, and that is before taking into account pension provision.
In addition, we should not forget that over one million NHS staff also continue to benefit from multi-year pay deals agreed with trade unions, including a pay rise of over 12 per cent for newly qualified nurses, with the average nurse pay now £34,000 per year, and that junior doctors' pay has been increased by 8.2 per cent.
I know that the Independent Pay Review Bodies will make recommendations in late Spring, when they will be considered by the Government. It is right that the Government does not pre-empt these recommendations. I also welcome the investment that the Government has already made in the NHS workforce, including £513m in professional development and increased recruitment, £30m on staff mental health support including wellbeing hubs and occupational health support, and the new bursary programme giving at least £5,000 each year to new nursing, midwifery, and Allied Health professional students.
I will, of course, continue to monitor this issue closely.
Mandatory Delivery Charges: Online Deliveries
I note there have been some media reports that consideration is being given to introducing delivery charges for online orders, and I do appreciate your concerns about this as a potential policy.
If such a policy were to be formally brought forward, I would of course look into it very carefully, and in doing so take into account the points you raise.
What is clear is that more broadly we need to reduce congestion and vehicle emissions in towns and cities across the country in order to improve air quality, and so that the UK can meet its ambitious target of reaching net zero by 2050. I understand that my Ministerial colleagues work closely with experts as they consider how best to go about achieving this.
I am very sympathetic to all couples who had their wedding plans derailed last year due to the pandemic. I can only imagine the expense, frustration and difficulty postponing and rearranging nuptials must be.
I am pleased that the Prime Minister has set out clear goals for weddings in his roadmap out of lockdown. At each step, restrictions on weddings will be loosened until the summer, where the hope is that weddings will finally be able to go ahead as normal and with no limits on number of guests.
Step 1: no earlier than 8th March - weddings continue to be limited to six attendees
Step 2: no earlier than 12th April - weddings of up to 15 people are allowed.
Step 3: no earlier than 17th May - weddings of up to 30 people are allowed, coinciding with groups of 30 being able to gather outdoors.
Step 4: no earlier than 21st June - weddings return to normal, with no limit on attendees.
I hope this has provided you with some reassurance that the Government has a plan when it comes to allowing weddings and that it hopefully won’t be much longer until you are able to tie the knot.
I share the concern about the future of pubs and the hardship caused by the coronavirus outbreak. It is clear the economic effects of fighting the virus last longer for businesses than the duration of any given restrictions, and we need to go further with our support.
I welcome the Prime Minister's announcement on the roadmap to reopening our country, which has endured difficult but necessary restrictions to save lives. I know just how eager pubs are to reopen and many will be disappointed that the easing of restrictions on hospitality will take place no sooner than April.
It is nonetheless encouraging that pubs will be able to reopen outdoor table service, with no requirements for a meal to be served with alcohol or a curfew in place. Under Step 3, which is expected to begin on 17 May, indoor hospitality can once again take place as well. In June, all restrictions on social distancing are scheduled to be removed. This cautious approach provides businesses with a sense of certainty for lifting restrictions over the spring months.
One-off top-up grants were previously announced, worth up to £9,000 per property, to help businesses through to the spring. For those businesses not eligible for the grants, a £594 million discretionary fund is being made available by the Government as a matter of urgency. The new one-off grants come in addition to billions of pounds of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.
In addition, to protect jobs, the Coronavirus Job Retention Scheme has been extended until April in response to restrictions, and to give people and businesses across the whole United Kingdom the certainty they need. 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 pleased that a robust package of support has been introduced since the start of the pandemic. No pub or other business in the hospitality sector will be required to pay business rates in 2020-21. HMRC has made it easier to claim back the duty on any beer thrown away as a result of pub closures. I also welcome that the temporary reduction of VAT to 5 per cent has been extended by a further three months to the end of March 2021. Additionally, the Chancellor will defer VAT repayments through a new scheme until March 2022.
I appreciate that there have been calls for a specific additional support package for pubs. I am very hopeful that the existing support provided will be enough, but evidence continues to be collected on the impact of the pandemic on the hospitality sector generally, and on pubs specifically, and I will keep this under review. Should the need arise, I will press Ministers to step in with further support for our pubs.
Unpaid Carers & Government Support
I recognise the valuable contribution made by carers of all kinds - residential, domiciliary, paid, unpaid - many of whom spend a significant proportion of their life providing support to family members, friends and neighbours. I totally agree that carers must receive the right support to help them carry out their caring roles. A tenth of adults in the UK provide unpaid care for a friend or family member, and these people should be supported in the invaluable work they do.
I know that the Government is committed to supporting the 5.4 million unpaid carers over the winter months. Funding has recently been extended to Carers UK’s support phone line until March 2021 to cover the winter period, and the Department for Health and Social Care is also providing free flu vaccines for unpaid carers. In addition, the Department for Education has launched the ‘See, Hear, Respond’ service in partnership with Barnardos to support young carers through this challenging time. I am assured that cross-departmental work is ongoing to scope further support options for young carers.
Existing support will remain available including the Carer’s Allowance, as well as through NHS volunteers who can provide support by going shopping or collecting prescriptions. Ministers have committed to regularly updating and bolstering the online guidance for unpaid carers, and I will continue to monitor progress in this area, speaking up for unpaid carers in Parliament.
Cut Beer & Alcohol Duty - Spring Budget 2021
I fully understand how difficult the last year has been for pubs and, as pillars of the community, I am supportive of all the measures the Government has put in place so far to assist them and ensure they survive during this tricky period, including the decision made in the Spring 2021 Budget to freeze beer and alcohol duty.
I also welcome the temporary cut to VAT from 20 per cent to 5 per cent for all food and non-alcoholic drinks, which initially applied from 15 July 2020 to 12 January 2021, but has been extended to 31 March 2021. This will continue to support restaurants, pubs, bars, cafés and similar premises across the UK. The Eat Out to Help Out scheme has supported thousands of businesses and help protect the jobs of over a million employees. Pubs, restaurants and others that participated will be fully reimbursed for the discount by the Government.
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.
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 on 1 October, a call for evidence for reform of Alcohol Duty was published.
I look forward to doing my own personal bit to support the pubs of South Camrbridgeshire when Coronavirus restrictions allow.
Supporting Shopping Local
It is interesting to read that some companies in our constituency have experienced a shift towards customers buying products from local businesses during the pandemic. I share your enthusiasm for buying products or services that are locally sourced. It is no exaggeration to say that small businesses power our economy and our communities.
This pandemic has seen many of our small businesses, which make up 99 per cent of all UK businesses, face significant challenges. I am pleased that the Government has taken action in the form of the support schemes, such as the Coronavirus Job Retention Scheme and the Bounce Back Loan Scheme, to enable these businesses to stay afloat and to reopen. Pubs, shops, and hotels will pay no business rates for 12 months; eligible businesses which have legally been required to close will receive one-off grants of up to £9,000; eligible closed businesses also receive monthly grants of up to £3,000; and businesses that cannot pay their rent because of coronavirus will be protected from eviction.
I note that the Keep it Local campaign organised by the National Office Products hopes to change buying habits by building on the trend they have identified and by demanding further support from the Government which they hope would thereby help to grow local economies.
While in principle I support this, as I would love to see more businesses thriving in our constituency, I do not think the Government should interfere with consumer buying habits but let them develop organically. Of course, the Government will do all it can to continue to support small and local businesses and put them in the best possible position to thrive. I know that the Secretary of State for Housing, Communities and Local Government is acutely aware of the need to support businesses trading on the High Street and I welcome the £3.6 billion Towns Fund which will support the regeneration of high streets, town centres and local economies.
The State Pension - End The Frozen Pension Campaign
I have long thought this situation is anomalous and unfair for those living abroad and their state pension, and will push for a change.
The UK State Pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In most overseas countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the State Pension but do not have their payments uprated as UK residents do. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.
Although the current policy on the State Pension overseas is the long-standing and unchanged position of successive Governments, I am aware of the report which the APPG on Frozen British Pensions has produced and will make sure to read its findings and recommendations, and bring to the attention of ministers.
Financial Support for Independent Cinemas
I recognise the immense value that entertainment venues, such as cinemas, bring to local communities. They provide much needed social interaction for people across all ages, so it is regrettable that the current national lockdown prohibits them from opening. I am determined that as many as possible are able to reopen their doors when the pandemic is passed.
Since the start of the pandemic, a broad range of support has been made available to the hospitality and leisure sectors, including for cinemas. This includes a one-year business rates holiday worth over £10 billion as well as a temporary reduction to VAT. I also warmly welcome the fact that 42 cinemas from across England have received a cash boost worth £650,000 from the £1.57 billion Culture Recovery Fund in the first awards made by the British Film Institute. This is the first tranche of money from the £30 million fund for independent cinemas.
I am also delighted with the Chancellor's recent announcement that £4.6billion has been made available in new lockdown grants to support businesses and protect jobs. Businesses in the retail, hospitality and leisure sectors are to receive a one off grant worth up to £9,000 per property to help them through to the Spring. Furthermore, a £594million discretionary fund has been made available to support other impacted businesses. This comes in addition to £1.1billion further discretionary grant funding for Local Authorities, as well as Local Restrictions Support Grants worth up to £3,000 a month.
Financial Support for Pubs
No one wants to see further restrictions and I understand that many pub landlords have concerns about the new lockdown measures. However, in light of the rapid spread of the virus across the country and the current transmission rates, these measures are regrettably necessary to prevent the NHS from being overwhelmed.
The closure of pubs has been difficult to bear, and the Government is rightly providing significant support for hospitality businesses. It is reassuring that the Chancellor has unveiled further economic support for retail, hospitality and leisure businesses, including pubs, in light of the new lockdown restrictions. New one-off top-up grants have been announced, worth up to £9,000 per property, to help businesses through to the spring.
For those businesses not eligible for the grants, a £594 million discretionary fund is being made available by the Government as a matter of urgency. The new one-off grants come in addition to billions of pounds of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.
I understand that pubs have been subject to debilitating restrictions for a long time, and I hear requests for a longer-term sector-specific package of support. While I take account of your concerns, and will bear them in mind, I welcome that pubs have had access to unprecedented levels of support throughout the pandemic. Ministers have been forthcoming in unveiling support grants, business rates relief, Government-backed loans and access to schemes such as the Coronavirus Job Retention Scheme. As a package, these measures worked to support publicans and I know that Ministers will continue to respond to developments as they happen.
I welcome that the Coronavirus Job Retention Scheme has been extended until April 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.
Despite this, 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 the easing of restrictions as soon as possible. South Cambridgeshire is home to some excellent pubs, and it would be devastating to lose them. In a lot of cases, pubs are a pillar of the community and I have been making representations to Ministers at every opportunity for continued support for this sector.
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