Eleventh Report - Economic impact of coronavirus: gaps in support and economic analysis
Select Committee
Treasury Committee
HC 882
15 February 2021
Government response
Sixth Special Report: Economic impact of coronavirus: gaps in support and economic analysis: Government Response to the Committee's Eleventh Report · published 26 Apr 2021
Recommendations & Conclusions
7 results
5
Conclusion
Rejected
Para 47
By conspicuously leaving out a large proportion of limited company directors from support altogether, we...
Conclusion
By conspicuously leaving out a large proportion of limited company directors from support altogether, we are concerned that the Government is sending out the wrong message—that it is not adequately supporting entrepreneurs and employers, who have suffered significantly from a …
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Government Response Summary
The government responded to concerns about the exclusion of limited company directors by explaining that difficulties in identifying eligible individuals and high fraud risks prevent broader support through schemes like SEISS, while noting other available business support.
HM Treasury
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7
Recommendation
Rejected
We question whether the Treasury could do more to investigate how to mitigate the fraud...
Recommendation
We question whether the Treasury could do more to investigate how to mitigate the fraud risks inherent in the DISS scheme and similar schemes, and whether the levels of fraud risk merit the Treasury’s position of not providing any support …
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Government Response Summary
The government rejected the recommendation to develop new support measures for limited company directors, citing significant difficulties in accurately identifying eligible individuals from HMRC data, high fraud risks associated with self-certification, and the availability of other business support schemes.
HM Treasury
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8
Conclusion
Rejected
Para 54
Although we acknowledge the Chancellor’s intention to target the SEISS at those who are most...
Conclusion
Although we acknowledge the Chancellor’s intention to target the SEISS at those who are most dependent on self-employed income, not all of them would have access to the Coronavirus Job Retention Scheme, as we pointed out in our first report …
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Government Response Summary
The government defended its SEISS eligibility criteria, particularly the 50% self-employed income test, stating it is designed to target support at those most in need and citing data on other income sources for those who do not qualify.
HM Treasury
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9
Recommendation
Rejected
Para 55
We believe that the Government should reconsider the 50 per cent limit in the eligibility...
Recommendation
We believe that the Government should reconsider the 50 per cent limit in the eligibility criteria for the fourth tranche of the SEISS grant so that those who derive less than half of their income through self-employment can receive some …
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Government Response Summary
The government rejected the recommendation to reconsider the 50% income limit for SEISS eligibility, stating the design aims to target those most in need and noting that stakeholders had initially supported an even higher threshold.
HM Treasury
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10
Recommendation
Rejected
Para 63
There is a striking inconsistency between the way the Government is treating employees earning more...
Recommendation
There is a striking inconsistency between the way the Government is treating employees earning more than £50,000 a year and those who are self-employed and have trading profits above £50,000 a year. Whereas those who are employed can receive support …
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Government Response Summary
The government rejects the implicit recommendation to remove the £50,000 cap or introduce a taper for SEISS, stating it is not proportionate due to complexity and the small number of potential beneficiaries, and that SEISS and CJRS are fundamentally different schemes.
HM Treasury
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11
Recommendation
Rejected
Para 64
We reiterate our recommendation from our first report in this inquiry that the Government must...
Recommendation
We reiterate our recommendation from our first report in this inquiry that the Government must tackle the cliff edge that exists in the design of the SEISS by removing the £50,000 cap and allowing those with profits just over this …
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Government Response Summary
The government rejects the recommendation to remove the £50,000 cap and introduce a taper for SEISS, stating it is not proportionate due to the complexity of administration and the relatively small number of people who would benefit.
HM Treasury
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14
Recommendation
Rejected
We recognise that it may not have been possible for the Government to help all...
Recommendation
We recognise that it may not have been possible for the Government to help all those who have fallen through the cracks of the support schemes. However, we are disappointed that the Government has so far shown no inclination to …
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Government Response Summary
The government stated it had explored alternative support models, including Northern Ireland's Directors' scheme, but concluded they were not viable due to higher fraud risks and practical issues with identifying eligible populations.
HM Treasury
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