Tag: UK Parliament

Government urged to learn lessons from gaps in worker and business support

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.”

MPs call for tougher restrictions on phone use in cars

The Government should consider tougher restrictions on driving while using a mobile phone and stricter enforcement of the law to prevent the ‘entirely avoidable’ tragedy of deaths and serious injuries from related crashes on the roads, MPs say.

‘Receiving and sending data equally dangerous’

In Road Safety: driving while using a mobile phone, the Transport Committee says the evidence is clear: using a mobile phone while driving is dangerous, with potentially catastrophic consequences.

MPs call on Government to overhaul current laws on using hand-held mobile devices while driving, to cover use irrespective of whether this involves sending or receiving data.

As evidence shows that using a hands-free device creates the same risks of crashing, the Committee also recommends that Government explores options for extending the ban on hand-held devices to hands-free phones.

In 2017, there were 773 casualties, including 43 deaths and 135 serious injuries, in collisions where a driver using a mobile phone was a contributory factor. The number of people killed or seriously injured has risen steadily since 2011.

Tougher enforcement needed

However, the rate of enforcement has plunged by more than two thirds since 2011. Enforcing the law is essential to ensuring that motorists do not illegally use their mobile phone while driving.  While the Committee welcomes the Government’s review of roads policing and traffic enforcement, the report calls on the Government to work with police to boost enforcement and make better use of technology.

The penalties for using a hand-held mobile phone while driving were increased in 2017 but still do not appear to be commensurate with the risk created and should be reviewed and potentially increased so that it is clear there are serious consequences to being caught, says the Report.

Chair of the Committee, Lilian Greenwood MP, said: “Despite the real risk of catastrophic consequences for themselves, their passengers and other road users, far too many drivers continue to break the law by using hand-held mobile phones.

“If mobile phone use while driving is to become as socially unacceptable as drink driving much more effort needs to go into educating drivers about the risks and consequences of using a phone behind the wheel. Offenders also need to know there is a credible risk of being caught, and that there are serious consequences for being caught.

“There is also a misleading impression that hands-free use is safe. The reality is that any use of a phone distracts from a driver’s ability to pay full attention and the Government should consider extending the ban to reflect this.

“Each death and serious injury which results from a driver using a mobile phone is a tragedy that is entirely avoidable. We need tougher restrictions, better enforcement and more education to make our roads safer for all.”