Darren Jones, Chair of Westminster’s Business, Energy and Industrial Strategy (BEIS) Committee, has written to Secretary of State Alok Sharma outlining a number of key issues for the UK Government to address in its approach to support for business and workers as the country emerges from the Covid-19 lockdown.
The correspondence to the Secretary of State recognises the efforts of many workers and businesses who rose to the challenges brought about during the pandemic.
The letter also highlights a number of issues, including gaps in support for workers, the tapering of support for workers through the Coronavirus Job Retention Scheme (CJRS), and the treatment of workers during the pandemic and health & safety issues.
The letter tackles a number of areas concerning the Government’s support for businesses, recommending the Government review the success of the various loan schemes and the behavior of banks, and also highlighting problems arising from unpaid business rent and the calls for targeted support for sectors that are likely to continue to be hit by restrictions which threaten their future revenue and viability.
Darren Jones, Chair of the Business, Energy and Industrial Strategy (BEIS) Committee said: “The Business Department and the Treasury deserve significant credit for their efforts in addressing the unprecedented challenges faced by business and workers following the impact of Covid-19.
“Given the evolving situation around Covid-19, it’s inevitable that issues would emerge concerning the effectiveness of the Government’s support package and its impact on workers and businesses.
“However, it is also the case that the alarm over gaps in the Government’s support, such as for women, and those affecting freelancers and agency workers, were being raised repeatedly by those affected and yet these warnings continued to go unheeded.
“Rishi Sunak echoed a previous Chancellor in suggesting that the coronavirus has seen us all in it together. However, it’s clear that the reality of the economic lockdown is that its impact has not been shared out evenly and that it is falling very heavily on some parts of our economy.
“For example, we heard from sectors, including retail, the creative industries and manufacturing, who expressed concern over increasing redundancies in the wake of the furlough scheme changes coming in this weekend.
“It’s clear that some sectors of our economy will continue to face very challenging conditions. The shutdown of the aviation and aerospace sector will, for example, have a longer-term impact on these industries compared to others. In some parts of hospitality and in other sectors too, difficult trading conditions and continuing restrictions threaten future revenue and their viability.
“It’s important the Government quickly learns the lessons of recent months so that they can act in future with more policy sophistication and transparency and be able to step up and deliver the most effective support possible to workers and businesses.
“If we face the prospect of a second-wave and the likelihood of increased local lock-downs, it’s essential the Government looks again at its approach to sector support and to the additional measures which will be necessary to secure our economic recovery, help businesses prosper and enable workers to protect their livelihoods”.
The letter to the Secretary of State notes the examples highlighted by Which? of price-gouging, profiteering, and the inability of consumers to obtain refunds which they were legally entitled to when their holidays and flights were cancelled.
The correspondence also notes the comments from Lord Tyrie, former Chairman of the Competition and Markets Authority, stating that the pandemic had revealed that the CMA needed new powers to deal with profiteering.
The Committee calls for the Government to undertake a review of the powers and responsibilities of the CMA, and other consumer regulation enforcers, to address bad business practices and the effective enforcement of consumer law and the action needed to tackle market abuses, such as profiteering, that took place during the pandemic.
The letter to the Secretary of State highlights issues around the impact of late payments and the problems that many small businesses were experiencing throughout the UK’s supply chains because of cash flow problems.
Following evidence from SMEs, the Federation of Small Businesses (FSB), and the Small Business Commissioner (SBC) on these issues, the Committee recommends the SBC be given additional powers to proactively investigate late payments, that the Prompt Payment Code be made compulsory, and that late payers should be excluded from government contracts.
Sue Davies, Head of Consumer Protection at Which?, said:“Our research has highlighted terrible practices during the coronavirus pandemic, including airlines that have refused to refund passengers and sellers that have unjustifiably bumped up prices on essential goods.
“In too many situations consumers have been left with nowhere to turn, which is why regulators need to be given stronger and more targeted powers so they can take effective enforcement to tackle the types of bad practice we’ve seen during the crisis.”
Bank of Scotland’s Business Barometer for July 2020 shows:
Overall confidence of firms in Scotland rose four points in the past month to -37%
Firms’ confidence in their own business prospects was unchanged month-on-month at -33%
One in ten (9%) businesses experienced an increase in demand, up four points on June
Business confidence in Scotland rose four points during July to -37%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.
Companies in Scotland reported the same level in confidence in their business prospects month-on-month at -33%. When taken alongside their views of the economy overall, this gives a headline confidence reading of -37%.
The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
The majority of firms continued to see demand negatively affected by coronavirus during July. Almost two thirds (64%) experienced a fall in demand for their products and services, up six points on the month before. However, 9% experienced an increase in demand, up four points on June.
With the Job Retention Scheme beginning to wind down from August, two fifths (41%) of Scottish firms surveyed said they didn’t currently have any furloughed workers.
Of the 55% of businesses reporting disruption to their supply chain during July, 18% expected the situation to improve within three months, while only 2% expected it would take more than 12 months to return to normal levels. Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “While marginal, the slight increase in confidence we’ve seen this month is a step in the right direction.
“There’s still a long way to go for confidence to fully recover, but the current transition to Phase 3 of lockdown should hopefully continue to boost many firms’ trading prospects.
“Pessimism is waning in many English regions as the hospitality and leisure sectors open their doors once again. With many firms beginning to restart operations here in Scotland this month, August will be telling as to whether the same confidence-inducing effect will take hold here too.”
In July, the retail sector increased 11 points to -12%, manufacturing increased 14 points to -21% and services rose 10 points to -26%. However, construction fell eight points to -22% after last month’s strong increase of 30 percentage points.
Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said:“With only one region reporting a fall in sentiment, we are starting to see sentiment lift for the vast majority of regions across the UK.
“The easing of lockdown restrictions, including the reopening of the economy and the relaxation of social distancing rules, has resulted in most businesses reporting improvements in demand, from a record-low base. This is key for the summer season, which will allow businesses to continue to open their doors and trade in the weeks and months ahead.”
Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “While the results suggest the economy is starting to see some improvement, economic confidence still remains in deep negative territory.
“The Government announcement of the slight easing of social distancing measures has now enabled over half of businesses to reach their capacity and resume their usual activities. However, how businesses will continue to respond to the Job Retention Scheme will be key in the coming months.”
Chancellor’s statement welcomed by Scottish Secretarybut Scottish Government saysthepackage is a huge opportunity missed.
The Chancellor yesterday set out the next steps in the UK Government’s strategy to secure Scotland’s economic recovery from coronavirus – announcing a “Plan for Jobs” to level up, spread opportunity and unite the UK.
Rishi Sunak outlined how he would focus on protecting, supporting and creating jobs as the UK enters the next phase in its recovery following the outbreak.
Delivering his Summer Economic Update, he said: “Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.”
As part of a series of landmark measures the Chancellor announced that the government will:
support jobs with the Job Retention Bonus to help businesses keep furloughed workers. UK Employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
expand Worksearch Support including a Flexible Support Fund and a £2 billion Kickstart scheme to subsidise jobs for young people
create jobs in the construction and housing sectors through funding to decarbonise public sector buildings, a demonstrator project to decarbonise social housing and funding to support research and development for Direct Air Capture (as announced by the PM on 30 June)
protect jobs with VAT cuts for hospitality and tourism, as well as a Eat Out to Help Out discount scheme.
The Summer Economic Update confirms an additional £800 million of Covid-19 funding for the Scottish Government through the Barnett formula.
The UK Government is now providing £4.6 billion through the Barnett formula to help the Scottish Government support individuals, businesses and public services through Covid-19.
Rishi Sunak said the plan for jobs was the second phase of a three-phase plan to secure the UK’s economic recovery from coronavirus.
The first phase, beginning in March, focused on protection with a £160 billion package of support – one of the largest and most comprehensive economic responses in the world. In Scotland this package has so far protected more than 620,000 jobs, helped thousands of businesses and paid £425 million to 146,000 self-employed people.
The Chancellor outlined that following the second phase focusing on jobs, there would come a third phase focusing on rebuilding, with a Budget and Spending Review in the autumn.
Speaking about the impact for Scotland, Chancellor Rishi Sunak said: “Since this crisis started, our wide-ranging package of support for Scotland has protected more than 620,000 jobs, thousands of businesses and paid £425 million to self-employed people.
“Today I’ve set out our plan to protect, create and support jobs across Scotland – to level up opportunity, safely reopen our economy and strengthen the Union.
“With a massive funding boost for Jobcentre Plus, doubling the number of work coaches, more people will now benefit from personalised and tailored job support. We’re investing £800m through the Barnett formula, giving Scotland the funds to create green news jobs. And we’re protecting the thousands of existing jobs in the hospitality sector with a cut to VAT and the Eat Out to Help Out scheme.”
Scottish Secretary Alister Jack said: “The measures announced by the Chancellor to support the country’s post-coronavirus economic recovery delivers for all parts of the UK.
“The UK Government’s ambitious plan for jobs, with its strong emphasis on our young people, is great news for young Scots.
“The VAT cut for tourism and hospitality will be a huge boost for Scotland. It is now absolutely essential that Scotland’s world-class tourism and hospitality industry can properly open for business.
“The stamp duty cut gives a helping hand to the housing market and building trades in England. I urge the devolved administration to use their powers to do the same in Scotland.
“And, thanks to UK Government spending decisions in the rest of the UK, Holyrood will get a £800 million cash boost, bringing their total additional coronavirus support funding to £4.6 billion.”
“The Chancellor has set out a fantastic package of support. The devolved administration now need to play its part and show they are serious about Scotland’s economic recovery.”
Responding the UK Chancellor’s Summer Statement, Scottish Finance Secretary Kate Forbes said: “We called for an £80bn stimulus package to build a strong, green and inclusive economic recovery and while there are elements in this announcement to be welcomed, in particular the measures on VAT for tourism and hospitality, overall this
“It falls well short of delivering what is needed to boost the economy and protect jobs.
“There is no new capital spend, no extension to the furlough scheme for hard-hit sectors and no further support for households in financial difficulty. A half price meal out does not help those struggling to put food on the table.
“Many of the initiatives are short-lived and do not provide long term certainty for business or households. Instead they will simply push the problems back to the end of the year when we will also have to deal with the end of the transition period with the EU.
“Despite announcing new funding measures worth up to £30bn today, most of it bypasses devolution and does not provide the Scottish Government with the funding we need to enable us to tailor an economic response that meets Scotland’s needs.
“Like all governments, we are facing huge spending pressures but we do not have the tools that others have to meet them. Along with the Governments of Wales and Northern Ireland, we set out a reasonable, proportionate set of new financial powers that would enable the Scottish Government to respond effectively.
“Regrettably, the UK Government has turned a deaf ear to those needs.”
Andrew McRae, Federation of Small Business’s (FSBx) Scotland policy chair said: “Good news has been in short supply for nearly four months. We needed action to help protect jobs and stimulate local economies across Scotland and that is exactly what the Chancellor has set out to do.
“However, it should be noted that there are many small businesses that were not supported by the Chancellor’s package – with company directors once again overlooked. Given these businesses have had little to no support in over 100 days, FSB is hoping that support can be provided in the near future.”
On the “kickstart” jobs scheme, Andrew said: “The jobs scheme will hopefully prevent a lost generation of young people, but for it to work in local economies, it must focus on the small employers who employ around one million people in Scotland. We can’t have a situation where local businesses are behind a queue of big corporates because of a target-driven approach.”
On the temporary VAT cut for hospitality and tourism sectors, he added: “Reducing VAT in sectors hit especially hard by the pandemic is an astute move. It will make everyday activities like grabbing a coffee and cake more affordable for budget conscious consumers – while making the country a more attractive destination for tourists home and abroad.”
On the discount to encourage people to eat out, Andrew said: “Scotland is fortunate to have an array of fantastic food offerings in restaurants, cafes and pubs across the country. We need to encourage more people to get back out into the community and spending money, so any moves to do this are welcome.”
The Poverty Alliance has also responded to the Chancellor’s Summer Statement. Peter Kelly, Director of the Poverty Alliance, said:“Young workers have been hard hit by Covid-19 job disruption, so the Chancellor’s announcement of a kickstart jobs scheme is welcome.
“But as the pandemic has highlighted, for too long people have been locked into poverty by low pay and insecure work.So these jobs should pay at least the real Living Wage and should have been accompanied by measures to tackle the precarious work that too many young people have to rely on.
“Part-time jobs that pay only the minimum wage cannot be a long-term solution to the problems in our labour market.
“Our recovery should be based on principles of fair work; that means redesigning jobs not reinforcing current problems.
“With the confirmation that the Job Retention Scheme is to end in October, the statement was an opportunity to fix our social security system before an expected surge in applications in autumn.
“Increasing the numbers of Work Coaches is welcome, but if we want our economic recovery to be a recovery for all, we need a social security system that loosens – not tightens – the grip of poverty on people’s lives. That means ending the benefit cap, making advance Universal Credit payments non-repayable, and ensuring that benefits actually meet people’s needs. “There is still time to make these changes before October and we urge the government to make them.
“The announcement of vouchers to support the hospitality sector falls short of expectations. At a time when more people than ever before are relying on emergency help from food banks, it is action to put cash in people’s pockets that is required, not the offer of a £10 discount on eating out.“
Chancellor of the Exchequer Rishi Sunak’s Summer Statement speech to the House of Commons this afternoon:
Mr Speaker,
I stood here in March saying I knew people were worried. And I know they’re worried still.
We have taken decisive action to protect our economy.
But people are anxious about losing their job, about unemployment rising. We’re not just going to accept this.
People need to know we will do all we can to give everyone the opportunity of good and secure work.
People need to know that although hardship lies ahead, no one will be left without hope.
So, today, we act, with a Plan for Jobs.
Our plan has a clear goal: to protect, support and create jobs.
It will give businesses the confidence to retain and hire.
To create jobs in every part of our country.
To give young people a better start.
To give people everywhere the opportunity of a fresh start.
Where problems emerge, we will confront them.
Where support is justified, we will provide it.
Where challenges arise, we will overcome them.
We entered this crisis unencumbered by dogma and we continue in this spirit, driven always by the simple desire to do what is right.
Mr Speaker,
Before I turn to our Plan for Jobs, let me first outline the nature of the challenge.
Our economic response to coronavirus is moving through three phases.
In the first phase, beginning in March, the government announced social distancing measures and ordered businesses to close, halting the spread of the disease.
We put in place one of the largest and most comprehensive economic responses in the world.
Our £160 billion plan protects people’s jobs, incomes and businesses:
we supported more than 11 million people and jobs through the job retention and self-employment schemes, alongside billions of pounds for the most vulnerable
we supported over a million businesses to protect jobs, through tax cuts, tax deferrals, direct cash grants, and over a million government-backed loans
and we supported public services, with new funding for the NHS, schools, public transport, and local authorities
In total, we have now provided £49 billion to support public services since this crisis began.
Analysis I’m publishing today shows our interventions significantly protected people’s incomes, with the least well off in society supported the most.
And this crisis has highlighted the special bond which holds our country together.
Millions of people in Scotland, Wales and Northern Ireland have been protected by the UK government’s economic interventions – and they will be supported by today’s Plan for Jobs.
No nationalist can ignore the undeniable truth: this help has only been possible because we are a United Kingdom.
Mr Speaker,
Four months on, as we carefully reopen our economy, we are entering the second phase of our economic response.
Despite the extraordinary support we’ve already provided, we face profound economic challenges:
world economic activity has slowed, with the IMF expecting the deepest global recession since records began
household consumption – the biggest component of our economy – has fallen steeply
businesses have stopped trading and stopped hiring
taken together, in just two months our economy contracted by 25% – the same amount it grew in the previous eighteen years.
And the independent Office for Budget Responsibility and Bank of England are both projecting significant job losses – the most urgent challenge we now face.
I want every person in this House and in the country to know that I will never accept unemployment as an unavoidable outcome.
We haven’t done everything we have so far just to step back now and say, ‘job done’. In truth, the job has only just begun.
Mr Speaker,
If the first phase of our economic response was about protection…
…and the second phase – the phase we are addressing today – is about jobs…
…there will come a third phase, where we will rebuild.
My Right Honourable Friend the Prime Minister has set out our vision to level up, unite the country, spread opportunity, and repair and heal the wounds exposed through this crisis.
I can tell the House we will produce a Budget and Spending Review in the autumn.
And, we will deal too, with the challenges facing our public finances.
Over the medium-term, we must, and we will, put our public finances back on a sustainable footing.
In other words, our Plan for Jobs will not be the last action – it is merely the next – in our fight to recover and rebuild after coronavirus.
Mr Speaker, Let me now turn to the detail of our plan for jobs.
Central to our economic response has been the Jobs Retention Scheme.
Furlough has been a lifeline for millions, supporting people and businesses to protect jobs. But it cannot and should not go on forever.
I know that when furlough ends it will be a difficult moment. I’m also sure that if I say the scheme must end in October, critics will say it should end in November. If I say it should end in November, critics will just say December.
But the truth is: calling for endless extensions to the furlough is just as irresponsible as it would have been, back in June, to end the scheme overnight.
We have to be honest.
Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before.
And the longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities.
It is in no-one’s long term interests for the scheme to continue forever … least of all those trapped in a job that can only exist because of a government subsidy.
So the furlough will wind down, flexibly and gradually, supporting businesses and people through to October.
But while we can’t protect every job, one of the most important things we can do to prevent unemployment is to get as many people as possible from furlough back to their jobs.
So, today, we’re introducing a new policy to reward and incentivise employers who successfully bring furloughed staff back – a new Jobs Retention Bonus.
If you’re an employer and you bring someone back who was furloughed – and you continuously employ them through to January – we will pay you a £1,000 bonus per employee.
It is vital people aren’t just returning for the sake of it – they need to be doing decent work.
So for businesses to get this bonus, the employee must be paid at least £520 on average, in each month from November to January the equivalent of the lower earnings limit in National Insurance.
The House should understand the significance of this policy. We will pay the bonus for all furloughed employees.
So if employers bring back all nine million people who have been furloughed, this would be a £9 billion policy to retain people in work.
Our message to business is clear: if you stand by your workers, we will stand by you.
Mr Speaker, The furlough was the right policy to support people through the first phase of this crisis.
But now, in this new phase, we need to evolve our approach.
Today, I want to set out for the House a new three-point plan for jobs.
We need to:
first – support people to find jobs
second – create jobs
and third – protect jobs
Mr Speaker,
Let me start with supporting jobs, and in particular the help we want to provide for those who will be hardest hit by this crisis: younger people.
Over 700,000 people are leaving education this year.
Many more are just starting out in their careers.
Coronavirus has hit them hard – under 25s are two and a half times as likely to work in a sector that has been closed.
We cannot lose this generation, so today, I am announcing the Kickstart Scheme:
A new programme to give hundreds of thousands of young people, in every region and nation of Britain, the best possible chance of getting on and getting a job.
The Kickstart Scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment.
These will be new jobs – with the funding conditional on the firm proving these jobs are additional.
These will be decent jobs – with a minimum of 25 hours per week paid at least the National Minimum Wage.
And they will be good quality jobs – with employers providing Kickstarters with training and support to find a permanent job.
If employers meet these conditions, we will pay young people’s wages for six months, plus an amount to cover overheads.
That means, for a 24-year-old, the grant will be around £6,500.
Employers can apply to be part of the scheme from next month, with the first Kickstarters in their new jobs this autumn.
And I urge every employer, big or small, national or local, to hire as many Kickstarters as possible.
Today, I’m making available an initial £2 billion; enough to fund hundreds of thousands of jobs.
And I commit today: there will be no cap on the number of places available.
We can do more for young people:
traineeships are a proven scheme to get young people ready for work. We know they work, so for the first time ever we will pay employers £1,000 to take on new trainees, with triple the number of places
to support 18-19-year olds leaving school or college to find work in high-demand sectors like engineering, construction and social care, we’ll provide £100 million to create more places on Level 2 and 3 courses
and the evidence says careers advice works, so we will fund it, with enough new careers advisers to support over a quarter of a million more people.
We will also expand our universal skills offer:
Sector-Based Work Academies provide training, work placements, and a guaranteed job interview in high-demand sectors.
The evidence shows they work, so we will expand them – tripling the number of places.
And we know apprenticeships work, too – 91% of apprentices stay in work or do further training afterwards.
So for the next six months, we’re going to pay employers to create new apprenticeships.
We will pay businesses to hire young apprentices, with a new payment of £2,000 per apprentice.
And we will introduce a brand-new bonus for businesses to hire apprentices aged 25 and over, with a payment of £1,500.
And let me thank my Right Honourable Friend the Education Secretary for his support and commitment in developing these measures.
Mr Speaker,
We know the longer someone is out of work, the harder it is to return. Millions of people are moving onto Universal Credit – they need urgent support to get back to work.
So, we are:
doubling the number of Work Coaches in Job Centres
increasing the Flexible Support Fund
extending the Rapid Response Service
expanding the Work and Health Programme
and developing a new scheme to support the long-term unemployed
The academic and economic evidence tells us these are among the most effective things we can do.
So I’m investing an extra billion pounds in DWP, to support millions of people back to work.
And I’m grateful for everything my Right Honourable Friend the Work and Pensions secretary, and her incredible team, have done.
£1 billion of support for the unemployed; more money for skills, traineeships, and apprenticeships; and a new, good quality job for hundreds of thousands of new Kickstarters – the first part of our plan for jobs.
Mr Speaker,
The second part of our plan is to support job creation.
That begins with historic investment in infrastructure – creating jobs in every region and nation of the UK.
At Budget, I announced £88 billion of capital funding this year; and last week the Prime Minister announced our plans to accelerate £5 billion of additional investment projects.
We are doubling down on our ambition to level up…
…with better roads, better schools, better hospitals, better high streets, creating jobs in all four corners of our country.
Mr Speaker, As well as investing in infrastructure, we want to create green jobs.
This is going to be a green recovery with concern for our environment at its heart.
As part of that, I’m announcing today a new, £2 billion Green Homes Grant.
From September, homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient and create local jobs.
The grants will cover at least two thirds of the cost, up to £5,000 per household.
And for low income households, we’ll go even further with vouchers covering the full cost – up to £10,000.
On top of the £2 billion voucher scheme, I am releasing £1 billion of funding to improve the energy efficiency of public sector buildings…
…alongside a £50 million fund to pilot the right approach to decarbonise social housing.
Taken together, we expect these measures to:
make over 650,000 homes more energy efficient
save households up to £300 a year on their bills
cut carbon by more than half a mega tonne per year, equivalent to taking 270,000 cars off the road
and, most importantly right now, support around 140,000 green jobs
A £3 billion green jobs plan to save money; cut carbon; and create jobs.
Mr Speaker, One of the most important sectors for job creation is housing.
The construction sector adds £39 billion a year to the UK economy;
House building alone supports nearly three quarter of a million jobs;
With millions more relying on the availability of housing to find work.
But property transactions fell by 50% in May.
House prices have fallen for the first time in eight years.
And uncertainty abounds in the market – a market we need to be thriving.
We need people feeling confident – confident to buy, sell, renovate, move and improve.
That will drive growth. That will create jobs.
So to catalyse the housing market and boost confidence, I have decided today to cut stamp duty.
Right now, there is no stamp duty on transactions below £125,000.
Today, I am increasing the threshold to half a million pounds.
This will be a temporary cut running until 31st March next year.
And, as is always the case, these changes to stamp duty will take effect immediately.
The average stamp duty bill will fall by £4,500.
And nearly nine out of ten people buying a main home this year, will pay no stamp duty at all.
Stamp duty cuts; A £5,000 Green Homes Grant; And tens of billions of pounds of new capital projects.
We are creating jobs, the second part of our Plan for Jobs.
Mr Speaker, The final part of our plan will protect jobs that already exist by helping some of our highest-employing but hardest-hit sectors: hospitality and tourism.
Our economy relies on consumption, especially social consumption:
The pubs, cafes, restaurants, hotels and B&Bs that bring life to our villages, towns and cities.
Taken together these sectors employ over 2 million people disproportionately younger, women and people from Black, Asian and minority ethnic communities.
And many rural and coastal communities rely on these industries.
80% of hospitality firms temporarily stopped trading in April and 1.4 million workers have been furloughed, the highest proportions of any sector.
So the best jobs programme we can do is to restart these sectors and get our pubs, restaurants, cafés and B&Bs bustling again.
I know people are cautious about going out.
But we wouldn’t have lifted the restrictions if we didn’t think we could do so safely.
And I’ve seen in the last few weeks how hard businesses are working to make their premises safe.
And if we follow the guidance, and respect what they ask us to do, we can all enjoy summer safely.
In turn, we need to give these businesses the confidence to know that if they open up, invest in making their premises safe, and protect jobs, demand will be there, and be there quickly.
So today, I’m announcing two new measures to get these sectors moving and protect jobs.
First, at the moment, VAT on hospitality and tourism is charged at 20%.
So I’ve decided, for the next six months, to cut VAT on food, accommodation and attractions.
Eat-in or hot takeaway food from restaurants, cafes and pubs;
Accommodation in hotels, B&Bs, campsites and caravan sites;
Attractions like cinemas, theme parks and zoos;
All these and more will see VAT reduced from next Wednesday until January 12th, from 20% to 5%.
This is a £4 billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs.
But, Mr Speaker, we will go further. The final measure I’m announcing today has never been tried in the UK before. This moment is unique. We need to be creative.
So, to get customers back into restaurants, cafes and pubs, and protect the 1.8 million people who work in them, I can announce today that, for the month of August, we will give everyone in the country an Eat Out to Help Out discount.
Meals eaten at any participating business, Monday to Wednesday, will be 50% off, up to a maximum discount of £10 per head for everyone, including children.
Businesses will need to register, and can do so through a simple website, open next Monday.
Each week in August, businesses can then claim the money back, with the funds in their bank account within 5 working days.
1.8 million people work in this industry. They need our support and with this measure we can all eat out to help out.
A VAT cut to 5%;
And a first-of-its-kind government-backed discount for all;
That’s the third part of our Plan for Jobs.
So, Mr Speaker,
A £1,000 Jobs Retention Bonus.
New, high quality jobs for hundreds of thousands of young Kickstarters.
£1bn to double the number of work coaches and support the unemployed.
More apprenticeships; more traineeships; more skills funding.
Billions of pounds for new, job creation projects around the country.
A £3 billion plan to support 140,000 green jobs.
And in this vital period, as we get going again:
VAT cut.
Stamp duty cut.
Meals out cut.
Mr Speaker, all part of our Plan for Jobs worth up to £30 billion.
Mr Speaker,
Governments, much less people, rarely get to choose the moments that define them. What choice there is comes in how we respond.
For me, this has never just been a question of economics, but of values:
I believe in the nobility of work.
I believe in the inspiring power of opportunity.
I believe in the British people’s fortitude and endurance.
And it is that value, endurance, more than any other, we need to embody now.
A patience to live with the uncertainty of the moment…
…to find that new balance between safety and normality.
We will not be defined by this crisis, but by our response to it.
It is an unambiguous choice to make this moment meaningful for our country in a way that transcends the frustration and loss of recent months.
It is a plan to turn our national recovery into millions of stories of personal renewal.
Mr Speaker, it is our Plan for Jobs and I commend it to this House.
Anneliese Dodds MP, Labour’s Shadow Chancellor, responding to the Government’s ‘Plan for Jobs’, said:“Labour has repeatedly called on the government to match the ambitions of Labour’s Future Jobs Fund, to rise to the youth unemployment challenge.
“To the extent that the ‘Kickstart’ programme is based on the Future Jobs Fund model, it should help many young people to access work.
“However, the Government are yet to rise to the scale of the unemployment crisis. The urgent priority right now is to prevent additional unnecessary unemployment in the first place by abandoning the Government’s ‘one-size-fits-all’ approach to the removal of the Job Retention and Self-Employed schemes.
“In addition, older people who become unemployed, and those living in particularly hard-hit areas, will also need tailored support.
“Government also urgently needs to get test, track and isolate right, as ultimately the biggest drag on our economy has been the slow public health response, which threatens additional localised lockdowns and which has reduced consumer confidence.”
Responding the UK Chancellor’s Summer Statement today, Finance Secretary Kate Forbes said: “We called for an £80bn stimulus package to build a strong, green and inclusive economic recovery and while there are elements in this announcement to be welcomed, in particular the measures on VAT for tourism and hospitality, overall this package is a huge opportunity missed. It falls well short of delivering what is needed to boost the economy and protect jobs.
“There is no new capital spend, no extension to the furlough scheme for hard-hit sectors and no further support for households in financial difficulty. A half price meal out does not help those struggling to put food on the table.
“Many of the initiatives are short-lived and do not provide long term certainty for business or households. Instead they will simply push the problems back to the end of the year when we will also have to deal with the end of the transition period with the EU.
“Despite announcing new funding measures worth up to £30bn today, most of it bypasses devolution and does not provide the Scottish Government with the funding we need to enable us to tailor an economic response that meets Scotland’s needs.
“Like all governments, we are facing huge spending pressures but we do not have the tools that others have to meet them. Along with the Governments of Wales and Northern Ireland, we set out a reasonable, proportionate set of new financial powers that would enable the Scottish Government to respond effectively. Regrettably, the UK Government has turned a deaf ear to those needs.”
Also responding to measures announced today by the chancellor in his summer statement, TUC General Secretary Frances O’Grady said: “Mass unemployment is now the biggest threat facing the UK, as shown by the thousands of job losses at British Airways, Airbus and elsewhere.
“The government must do far more to stem the rising tide of redundancies. We can’t afford to lose any more good skilled jobs.
“The chancellor should have announced targeted support for the hardest-hit sectors like manufacturing and aviation. Struggling businesses will need more than a one-off job retention bonus to survive and save jobs in the long-term.
“Unions campaigned for a job guarantee scheme. Kickstart is a good first step. But if the government allows vital industries to go the wall, unemployment will surge and the recession will last far longer.
“The more people we have in decent work, the faster we can work our way out of recession. We must create jobs through more new public investment in new homes, childcare, faster broadband, better transport and green tech.
“The government should have announced extra investment in jobs across all public services – starting with filling the 200,000 vacancies in the NHS and social care. And if the chancellor wants people to have the confidence to eat out, he should have announced a pay rise for hard-pressed key workers rather than dining out discounts for the well-off.”
On sick pay, Frances added: “The government missed an opportunity to strengthen their faltering Test and Trace programme.
“Statutory sick pay is too low for anyone to live on. It’s not viable to ask people to self-isolate if they will be pushed into financial hardship.
“We had hoped ministers would listen, raise the rate and change the rules so low-paid people could afford to do the right thing and comply with self-isolation. Once again, this government fails to understand the real lives of low-paid workers. It is clear that poverty wages and insecure contracts are a public health hazard.”
As the Chancellor stands up to make his ‘summer statement’ today, families across the country will be facing up to the possibility of unemployment (writes the TUC’s KATE BELL):
The Chancellor has a chance to prevent the devastation of mass unemployment leading to the situation this country saw in the 1980s – young people left on the scrap heap, lives ruined, and communities decimated. But he needs to act fast and decisively.
Here’s the TUC’s plan for decent jobs:
1. Introduce a real jobs guarantee – offering paid jobs for young people who face unemployment
We’ve heard that the Chancellor may invest in apprenticeships, or traineeships – unpaid work placements with some training attached. It’s not clear yet whether these will be voluntary, or how the Chancellor expects people to live while they’re undertaking these. The TUC has always opposed mandatory unpaid work placements. And unpaid work experience is no substitute for a real jobs guarantee.
We want the government to invest in supporting real jobs, paid at least the Real Living Wage, for young people facing the prospect of long-term unemployment. Government funding should support additional jobs in the public and private sector that support regional growth strategies, and provide real benefit, including helping to decarbonise the economy.
That jobs guarantee must go alongside a rapid redundancy response service and investment in jobcentres. And we desperately need an increase in social security payments to stop those who lose their jobs spiralling into debt.
2. Invest across the economy to create jobs
We know the country needs an infrastructure upgrade to help drive productivity, and urgent action to tackle the climate crisis. And after a decade of austerity, our public services are desperately overstretched.
Fixing these problems now can help create the jobs we need. Research for the TUC shows that an £85bn investment in green infrastructure could help create 1.24 million jobs in the next two years, including 500,000 jobs through building and retrofitting social housing, and almost 60,000 jobs in electrifying transport.
And we should support our public services by investing in jobs. There are over 100,000 vacancies in social care, and 100,000 more in the NHS – even before we deliver a better system. Local government saw 100,000 redundancies in the past decade, jobs that are needed now to deliver vital services and help tackle the pandemic.
3. Work with unions and business on new rescue plans for hard hit sectors
We’ve seen how the pandemic, and the social distancing measures it requires, has hit some types of business harder than others. Aviation and hospitality have been particularly badly affected. Government needs to come together with unions and businesses to design rescue packages for these sectors – including setting out how those plans can be used to deliver better and greener jobs.
The Job Retention Scheme has done valuable work throughout the crisis in protecting people’s jobs, and is now supporting many people to work part-time. Government should extend it beyond October for businesses that can show they have a viable future but need more time to get back on their feet.
4. Prioritise progress towards equality
We know unemployment is bad for everyone. But those who already face discrimination in the labour market often see their prospects held back even further. BME groups faced higher unemployment in the 2008-09 recession, and still have high unemployment rates.
Research shows that during upturns disabled people are the last to gain employment, and during downturns they are first to be made unemployed. With the childcare sector on the brink of collapse, women’s employment prospects face being put back a generation.
The Chancellor needs to prioritise progress towards equality when he sets out his plans. That means tackling the insecure work that leaves BME workers disproportionately having their hours cut or being let go. It means monitoring the impact of employment programmes on different groups.
And it means the Chancellor needs to protect those who can’t work due to the fact they are shielding or have caring responsibilities from being forced out of work by extending the job retention scheme.
Mass unemployment and a new wave of inequality aren’t inevitable. We can build back better. But the Chancellor needs to be bold and act fast.
Finance Ministers from the devolved administrations are urging the UK Government to ease the financial restrictions imposed on devolved governments so they can better respond to the coronavirus (COVID-19) crisis.
Ahead of the Chancellor’s Summer Statement, Kate Forbes, Rebecca Evans and Conor Murphy are calling for assurances that will give them the freedom to switch capital funding to day-to-day revenue and put an end to the arbitrary limits on borrowing. They are also looking for more clarity on details around the forthcoming Spending Review.
Kate Forbes, Scotland’s Cabinet Secretary for Finance (above), said: “The powers we are seeking will enable the Scottish Government to respond to COVID-19 more effectively and reboot our economy. They are relatively limited powers, but would ease some of the immense pressures on our budget and give us more tools to kick-start our recovery.
“At the moment, any extra money spent bolstering services and supporting the economic recovery must be taken from other areas. That creates risks for our essential public services, jobs and businesses. I am therefore calling on the Chancellor to ease these rigid fiscal rules and give us the flexibility we need to properly address the monumental challenges our economy is facing.
“I also want to see greater ambition in the level of investment in our economy. Last week the Scottish Government set out a proposal for an £80 billion UK-wide stimulus package. What is needed at this time of crisis is bold and practical policies that will boost consumption, promote investment and protect jobs.”
Northern Ireland Finance Minister Conor Murphy said: “It is crucial that the devolved administrations are equipped to respond swiftly and effectively to the challenges arising from COVID-19.
“More financial flexibility can help us deal with these challenges and use our budgets to support public services, protect the vulnerable, and deliver an economic recovery.”
Welsh Finance Minister Rebecca Evans said: “Our response to the COVID-19 crisis has been hampered by UK imposed rules that limit our ability to get more resources to the frontline.
“There is no clear rationale for these rules, which undermine good budget management in Wales.
“The Welsh Local Government Association, Wales TUC, FSB Cymru and Institute for Fiscal Studies and, more recently, the Senedd’s Finance Committee, have all made the same calls for change.
“The crisis has made the issue urgent. It’s time for the UK Government to act and provide the flexibility we need to respond and invest in Wales’ recovery.”
Statement given by the First Minister Nicola Sturgeon at a media briefing in St Andrew’s House yesterday (Tuesday 7th July):
Good afternoon everyone, thank you for joining us. I will start with the usual update on the most recent COVID-19 statistics.
An additional 2 positive cases were confirmed yesterday – that takes the total now in Scotland to 18,302.
A total of 699 patients are currently in hospital with either confirmed or suspected cases of the virus. That is 17 more than yesterday overall, but it includes a reduction of 8 in the number of confirmed cases.
A total of 7 people last night were in intensive care with confirmed or suspected covid. That is 1 fewer than yesterday.
Since 5 March, a total of 4,102 patients who had tested positive and been admitted to hospital, have now been discharged from hospital.
However, I am afraid that during the last 24 hours, 1 death was registered of a patient confirmed through a test as having COVID-19. That takes the total number of deaths in Scotland, under that measurement, to 2,489.
I, of course, want to send my condolences to that person’s loved ones – and of course to everyone who has lost a loved one to this illness over these past few months.
I also want to thank, as always, our health and care workers. The entire country continues is grateful to you for what you have done and continue to do.
Now, I have three things I want to briefly update you on today before taking questions.
The first relates to the cluster of new Covid cases in Dumfries and Galloway last week. In total, 12 cases were identified as part of that cluster, and 23 contacts have been traced.
There were no new cases relating to this cluster yesterday. The view of the Incident Management Team, is that all chains of infection within Dumfries and Galloway have now been identified and controlled.
As a result, I can confirm that we are today lifting the recommended travel restriction that had applied to people in certain postcodes around Gretna, Dumfries and Annan. Our advice now is that people in those areas – like everyone else in Scotland – can travel more than 5 miles for leisure purposes.
However, like everyone else, they must follow strict advice summarised in the FACTS campaign.
In addition, people can now visit care homes in those areas – in line with the same strict guidelines that apply elsewhere in Scotland.
I want to take the opportunity again today to thank everyone who has been involved – both in Dumfries and Galloway, and also in Cumbria – in controlling this outbreak and in implementing Test and Protect so effectively.
I also want to thank the employers who enabled the rapid testing of their workforces; the contacts who co-operated by self-isolating when asked; and everyone in the affected postcodes, who stuck to the travel restrictions.
Although we all have a part to play in seeking to avoid this, it is the case, as we continue to lift restrictions of lockdown, there will inevitably be more clusters like this one in the weeks and months ahead and so it is reassuring, while we are absolutely not complacent, to see that this one appears to have been controlled so rapidly and so effectively. I am very grateful to everyone who played a part in achieving that outcome.
The second issue I want to raise today relates to the economic statement being made by the Chancellor of the Exchequer tomorrow.
The Scottish Government wrote to the UK Government on Saturday, to highlight again our view that an £80 billion stimulus programme is needed for the UK economy. To put that in context, that would be roughly comparable in ambition to the programme that Germany has recently adopted.
We believe that the UK’s programme should tackle inequalities, support jobs, and have a strong focus on investment in low carbon and digital infrastructure.
We have also recommended an employment guarantee for young people – a policy the Scottish Government is looking at ourselves. And we have called for a temporary cut in VAT to boost consumption – with especially low rates for our hospitality and tourism sectors.
Finally, we have proposed that Scotland should have greater financial powers – for example over borrowing – so that we can play our own part in, and shape our own response to, the economic implications of the pandemic.
It’s worth stressing again that the Scottish Government has on several occasions welcomed policies adopted by the Treasury during this pandemic – for example the job retention scheme, and this week’s support for the culture sector and I want to again say how appreciated, how welcomed and how important these kinds of interventions are.
We hope that we will be able to give a welcome to tomorrow’s statement as well but for that to happen, the policies put forward must meet the scale of the economic challenges that the UK faces and I very much hope that they will do.
The proposals that we have put forward on a constructive basis, are ambitious, practical, and sustainable. They, as I say, have been put forward in a spirit of collaboration and partnership. And we believe they would benefit Scotland and the whole of the UK. I therefore hope that they will be adopted tomorrow.
The need for ambition in economic policy is demonstrated by the final issue I want to briefly update on.
The Scottish Government currently publishes information about the Scottish Welfare Fund on a monthly basis.
The most recent report has been published today, and includes information about crisis grants.
Those are the payments we make available for people on low incomes who are suffering an unexpected and unavoidable financial emergency – for example if they take on caring responsibilities suddenly, and have to pay an unforeseen bill; or if they face a sudden gap in income because they have been made unemployed, and await redundancy or benefit payments.
Today’s report shows that the total value of crisis grant payments in May was more than 40% higher than in May last year. It also shows, however, that the value of payments in May was slightly lower than in March and April of this year, when there was a very large increase at the beginning of lockdown.
These increases demonstrate why the Scottish Government more than doubled the Scottish Welfare Fund in March. We knew then that the necessary public health measures needed to control Covid, would cause financial, emotional and health difficulties in households across the country.
They also provide a further illustration of why we do need to see further economic and fiscal stimulus so we can minimise the economic harm that has been caused by lockdown. And to demonstrate once again, of course why emerging from lockdown for all of us is so essential. We cannot, and this is a statement of the obvious, we cannot go on indefinitely, with severe restrictions on our economy and our way of life.
That is why I hope to be able to confirm on Thursday that we are moving to phase 3, in our route map out of lockdown.
However, and this point is just as important, it is also why we are determined to ensure that our emergence from lockdown, is safe and sustainable. We must absolutely minimise the risk of going back into lockdown later on in the year because we have allowed the virus to run out of control again.
That risk is a very real one – and we must not ever lull ourselves into a sense that we are somehow immune from it. If you doubt that, I would encourage you to take a look at what’s happening in other parts of the world.
In recent days in Australia, Melbourne and its surrounding areas have gone back into lockdown – new cases from community transmission there appear to be higher than in March/April. In Spain, Galicia and Catalonia are reinstating lockdown measures. So is Belgrade in Serbia.
And we are continuing to see a surge in cases in many parts of the United States.
Covid cases in Scotland are currently very low, down to the collective efforts of anyone. But we are still seeing some cases every day. The virus is still out there and it will easily come back if we allow it to.
As we lift the measures that have kept it under control, the risks of transmission increase again. It stands to reason as we start to interact more, we provide more opportunities for the virus to spread.
Outbreaks and clusters – as I said earlier – will happen.
But it is down to all of us to minimise the chances of them happening and to make sure that when they do happen, they don’t spread.
So in everything we do – particularly as you get out and about a bit more – we should be conscious of every possible bridge you might be providing for the virus to spread from one person to another or one household to another, so that we can avoid giving it those opportunities.
That is why we keep on stressing our public health campaign – Facts. It summarises the five key things all of us must remember in everything we do. And if these five things are all you remember over this next period, please make sure that you do remember them and that you apply them in your everyday lives. So just to run through again what they are:
· Face coverings should be worn in enclosed spaces such as shops and public transport. From Friday – as we go into I hope phase 3 – face coverings will be mandatory by law in shops with obvious exceptions, for people with medical conditions or young children. They already are in public transport.
· Avoid crowded places – indoors and outdoors. · Clean your hands and any hard surfaces that you touch regularly. · Two metre distancing remains the general rule. · and self-isolate, and book a test, if you experience any symptoms of covid, don’t wait to do that, do that immediately.
If all of us remember these five basic measures, then we will minimise the opportunities for the virus to spread as we start to get back to normal and in doing that we will keep ourselves safe and will help to protect others and undoubtedly we will save lives.
So please continue to do all of these things as we slowly, carefully but steadily get our economy and our society back to normal. If we follow these measures then we will do that without giving the virus the chance to spread again which would take us back to the start of this.
So my thanks for your cooperation to date and please keep following these important public health rules.
A £200bn economic recovery plan is needed from the Chancellor tomorrow to reflect the unprecedented scale and nature of the crisis Britain faces, and the lack of monetary policy firepower available to support the economy, according to a major new report published today by the Resolution Foundation.
This government is committed not just to defeating coronavirus but to using this crisis to tackle this country’s great unresolved challenges of the last three decades.
To build the homes, to fix the NHS, to tackle the skills crisis, to mend the gap in opportunity and productivity and connectivity between the regions of the UK, to unite and level up.
The government will build back better, build back greener, build back faster.
We will invest in and accelerate infrastructure across the UK; promote a clean, green recovery; reform our planning system; and strengthen the Union and local government.
All of these changes will make life better for the people of this great country and unleash Britain’s potential.
The Chancellor will unveil more of this plan next week, and we will use the forthcoming Spending Review and Autumn Budget to set the direction for the rest of this parliament.
Investing in and accelerating infrastructure
The government is committed to building a Britain with world class infrastructure. Spring Budget 2020 set out that the public sector will invest £640bn over five years in our future prosperity.
We are redoubling our efforts to get on with this now, in support of economic recovery and jobs right across the country by bringing forward £5bn of capital investment projects, supporting jobs and the economic recovery, including:
£1.5bn this year for hospital maintenance, eradicating mental health dormitories, enabling hospital building, and improving A&E capacity. This will improve patient care, make sure NHS hospitals can deliver world-leading services and reduce the risk of coronavirus infections.
£100m this year for 29 projects to improve our road network to get Britain moving, from bridge repairs in Sandwell to boosting the quality of the A15 in the Humber region. Plus £10m for development work to unblock the Manchester rail bottleneck, which will begin this year.
Over £1bn to fund the first 50 projects of a new, ten-year school rebuilding programme, starting from 2020-21. These projects will be confirmed in the autumn, and construction on the first sites will begin from September 2021.
£560m and £200m for repairs and upgrades to schools and FE colleges respectively this year.
£142mn for digital upgrades and maintenance to around 100 courts this year, £83m for maintenance of prisons and youth offender facilities, and £60m for temporary prison places, creating thousands of new jobs.
£900m for a range of ‘shovel ready’ local growth projects in England over the course of this year and next. This will enable local areas to invest in priority infrastructure projects to drive local growth and jobs. This could include the development and regeneration of key local sites, investment to improve transport and digital connectivity, and innovation and technology centres to build on local comparative advantage
£96m to accelerate investment in town centres and high streets through the Towns Fund this year. This will provide all 101 towns selected for town deals with £500k-£1m to spend on projects such as improvements to parks, high streets, and transport.
We will establish a new Infrastructure Delivery Taskforce, named ‘Project Speed’.
Led by the Chancellor, Project Speed will bring forward proposals to deliver government’s public investment projects more strategically and efficiently. This will ensure we are building the right things better and faster than before.
The taskforce will aim to cut down the time it takes to develop, design and deliver vital infrastructure projects. For example, it will look at how it can address outdated practices and identify blocks to progress.
Projects will include the 40 new hospitals the government has committed to build and the school rebuilding programme announced yesterday.
In the Autumn, the government will also publish a National Infrastructure Strategy which will set a clear direction on core economic infrastructure, including energy networks, road and rail, flood defences and waste.
The Government also intends to bring forward funding to accelerate infrastructure projects in Scotland, Wales, and Northern Ireland – working with the devolved administrations to identify where we can get spades in the ground, build our communities, and create jobs faster for citizens across the United Kingdom.
We will also carry out a review to look at how best to improve road, rail, air and sea links between our four nations to create a more connected kingdom.
Through the Barnett formula, the UK Government has already given the Scottish Government £5.4bn, the Welsh Government £2.4bn, and the Northern Ireland Executive £1.7bn in capital funding for devolved areas this financial year. We would encourage them to accelerate infrastructure projects in the same way that the UK Government is doing.
Promoting a clean, green recovery
The UK was the first major economy to commit to net zero emissions by 2050 in law. We already have a proven track record of cutting emissions while growing the economy, with over 460,000 UK jobs in low-carbon businesses and their supply chains.
We will continue to build on this even further and deliver a stronger, cleaner, more sustainable economy after this pandemic.
The Government will continue to set out further measures as part of its green agenda in the run up to COP26 in November 2021.
Transport:
We are making additional funding available this year to attract investment in ‘gigafactories’, which mass produce batteries and other electric vehicle components, enabling the UK to lead on the next generation of automotive technologies.
£10m of funding will be made available immediately for the first wave of innovative R&D projects to scale-up manufacturing of the latest technology in batteries, motors, electronics and fuel cells.
Additional funding will also allow us to progress initial site planning and preparation for manufacturing plants and industry clusters, with sites under consideration across the UK.
This funding forms part of our commitment to spend up to £1bn to attract investment in electric vehicle supply chains and R&D to the UK.
And this comes on top of the over £1bn we provided at Budget to support the rollout of ultra-low emission vehicles in the UK via support for a super-fast charging network for electric vehicles, and extension of the Plug-In Grant schemes.
The UK will also aim to produce the world’s first zero emission long haul passenger aircraft.
Rebuilding our natural infrastructure:
Re-foresting Britain by planting 75,000 acres of trees every year by 2025.
£40m Green Recovery Challenge Fund to help halt biodiversity loss and tackle climate change through local conservation projects, connecting more people to the outdoors by delivering up to 5,000 jobs.
Innovation:
Up to £100m of new funding for research and develop a brand new clean technology, Direct Air Capture (DAC), which captures CO2 emissions directly from the air around us. If successful, DAC technology could be deployed across the country to remove carbon from the air, helping sectors where it’s tough to decarbonise such as aviation.
To help bring forward this technology, the government is exploring options around carbon pricing and incentives, where the government may pay a price per tonne of CO2 captured.
Reforming our planning system
We will make it easier to build better homes where people want to live.
New regulations will give greater freedom for buildings and land in our town centres to change use without planning permission and create new homes from the regeneration of vacant and redundant buildings.
Under the new rules, existing commercial properties, including newly vacant shops, can be converted into residential housing more easily, in a move to kick start the construction industry and speed up rebuilding.
The changes include:
More types of commercial premises having total flexibility to be repurposed through reform of the Use Classes Order. A building used for retail, for instance, would be able to be permanently used as a café or office without requiring a planning application and local authority approval. Pubs, libraries, village shops and other types of uses essential to the lifeblood of communities will not be covered by these flexibilities
A wider range of commercial buildings will be allowed to change to residential use without the need for a planning application
Builders will no longer need a normal planning application to demolish and rebuild vacant and redundant residential and commercial buildings if they are rebuilt as homes
Property owners will be able to build additional space above their properties via a fast track approval process, subject to neighbour consultation.
These changes, which are planned to come into effect by September, will both support the high street revival by allowing empty commercial properties to be quickly repurposed and reduce the pressure to build on green fields land by making brownfield development easier.
The Prime Minister also announced that work will begin to look at how land owned by the government can be managed more effectively.
Ahead of the Spending Review, a new, ambitious cross-government strategy look at how public sector land can be managed and released so it can be put to better use.
This would include home building, improving the environment, contributing to net zero goals and injecting growth opportunities into communities across the country.
These announcements come alongside a package of measures to support home building across England, including:
A £12bn affordable homes programme that will support up to 180,000 new affordable homes for ownership and rent over the next 8 years, confirmed today.
Included in the affordable homes programme will be a 1,500 unit pilot of ‘First Homes’: houses that will be sold to first time buyers at a 30% discount which will remain in perpetuity, keeping them affordable for generations of families to own.
Funds from the £400m Brownfield Land Fund have today been allocated to the West Midland, Greater Manchester, West Yorkshire, Liverpool City Region, Sheffield City Region, North of Tyne and Tees Valley to support around 24,000 homes.
The Home Building Fund to help smaller developers access finance for new housing developments will receive additional £450m boost. This is expected to support delivery of around 7,200 new homes.
The government will launch a Policy Paper in July setting out our plan for comprehensive reform of England’s seven-decade old planning system, to introduce a new approach that works better for our modern economy and society.
Strengthening the Union
We will take steps to guarantee and enhance our internal market and find new ways to invest in Scotland, Wales, England and NI and focus on “levelling up” our whole country.
As above, the Government also intends to bring forward funding to accelerate infrastructure projects in Scotland, Wales, and Northern Ireland – working with the devolved administrations to identify where we can get spades in the ground, build our communities, and create jobs faster for citizens across the United Kingdom.
The Spending review will create a multi-year, UK-wide Shared Prosperity Fund which will support which will support local economic recovery by driving economic growth and tackling deprivation.
We will carry out a review to look at how best to improve road, rail, air and sea links between all parts of the UK to create a more connected kingdom.
Today Finance Secretary @KateForbesMSP launched a report which sets out the principles we believe the UK Government should follow to kick-start the economy and reduce inequalities following the #coronavirus pandemic.
A UK-wide £80 billion stimulus package should be created to regenerate the economy and reduce inequalities following the coronavirus (COVID-19) pandemic, a new Scottish Government report proposes.
The package could finance a temporary reduction in VAT and move the tourism and hospitality industries onto a reduced VAT rate of five per cent.
A two pence cut in employers’ National Insurance Contributions to reduce the cost of hiring staff is also recommended in the report, entitled COVID-19: UK Fiscal Path – A New Approach.
Other action it proposes the UK Government should take to kick-start the economy includes:
introduce a jobs guarantee scheme for young people and extend sector-specific employment and business support schemes
create a National Debt Plan to help business and household budgets recover from the effects of the pandemic
adopt new fiscal rules which prioritise economic stimulus over deficit reduction in times of crisis
accelerate major investment in low‑carbon initiatives, energy efficiency and digital infrastructure
extend Scotland’s financial powers to allow it to shape its own response to the pandemic
The report was launched yesterday by Finance Secretary Kate Forbes.
Ms Forbes said: “We are emerging from the biggest economic shock of our lifetimes. It has hit the most vulnerable in our society disproportionately and presents challenges that the Scottish Government does not currently have the powers to meet.
“The UK Government’s fiscal policies are still key in determining our budget, so today we set out the principles we believe it should follow to ensure we emerge with a fairer, greener economy that values wellbeing alongside growth.
“This report recommends bold, practical steps which would provide an immediate boost to our economy, protect existing jobs and deliver new ones. It tackles public debt, employment and proposes measures to further support business. Crucially, it avoids any return to austerity. Economic stimulus must be prioritised over deficit reduction until the recovery has fully taken hold.
“Germany has already adopted a similar-size stimulus package, representing four per cent of GDP, and the UK Government needs to be similarly positive, proactive and ambitious.
“Action is needed now. If the UK Government is not prepared to respond then Scotland must have the additional financial powers required to secure a sustainable economic recovery.
“Without those powers we will be at a severe disadvantage to other nations. It would be like trying to chart our way to recovery with one hand tied behind our back.”
