Second Report - The impact of Coronavirus on businesses and workers: interim pre-Budget report
Select Committee
Business and Trade Committee
HC 1264
26 February 2021
Government response
First Special Report - The impact of Coronavirus on businesses and workers: interim pre-Budget report: Government Response to the Committee’s Second Report of Session 2019–21 · published 19 May 2021
Recommendations & Conclusions
11 results
5
Recommendation
Accepted
Para 21
We are also concerned that gaps in support appear to have fallen disproportionately on particular...
Recommendation
We are also concerned that gaps in support appear to have fallen disproportionately on particular sectors, such as the creative industries. Further Government action is required to support those sectors of the economy.
Government Response Summary
The government acknowledges the challenges and details additional support for creative industries, including £300 million for the Culture Recovery Fund, an extension of the Film & TV Production Restart Scheme, and £300 million for the Sport Recovery Package.
Department for Business and Trade
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6
Recommendation
Accepted
Para 22
We recommend that the Government reviews the coverage of current support to make sure that...
Recommendation
We recommend that the Government reviews the coverage of current support to make sure that the greatest support is provided to those individuals facing most hardship, and that any gaps in provision are addressed. We expect the Chancellor to announce …
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Government Response Summary
The government details various measures from the Spring Budget 2021, including targeted support through a turnover test for SEISS, new Restart Grants, additional discretionary business grants, and extensions to Universal Credit and Working Tax Credit payments, to ensure support for those facing hardship.
Department for Business and Trade
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7
Conclusion
Accepted
We appreciate that not every job can be saved as the Chancellor has set out,...
Conclusion
We appreciate that not every job can be saved as the Chancellor has set out, but are nonetheless concerned about rising unemployment, which is particularly affecting women, BAME workers and young people because they are more likely to be employed …
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Government Response Summary
The government responds to the committee's concern about premature withdrawal of support by detailing the extension of the Coronavirus Job Retention Scheme (CJRS) and the Self-Employment Income Support Scheme (SEISS) until September, while also expanding eligibility for both schemes.
Department for Business and Trade
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8
Recommendation
Accepted
Para 31
We recommend the Government urgently produces an economic assessment which sets out the opportunities and...
Recommendation
We recommend the Government urgently produces an economic assessment which sets out the opportunities and risks posed by structural long-term changes to the economy from the combined impacts of COVID-19, Brexit, and the net zero transition. We welcome the publication …
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Government Response Summary
The government responded by referencing its published 'Build Back Better: our plan for growth' and an upcoming 'Innovation Strategy', along with new bodies like the Build Back Better Business Council and NERT, as its comprehensive framework for addressing long-term economic changes and skill development.
Department for Business and Trade
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9
Recommendation
Accepted
This plan should form part of the Industrial Strategy to ensure our educational institutions, key...
Recommendation
This plan should form part of the Industrial Strategy to ensure our educational institutions, key business sectors, the workforce and broader economy are strategically geared towards achieving long-term goals such as the net zero transition, our aging society and the …
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Government Response Summary
The government referenced its 'Build Back Better: our plan for growth' as the new framework integrating elements of the Industrial Strategy, along with an upcoming 'Innovation Strategy' and newly established councils and taskforces, to strategically achieve long-term economic goals.
Department for Business and Trade
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10
Recommendation
Accepted
Para 39
We welcome the sheer scale of financial support the Government has provided to businesses since...
Recommendation
We welcome the sheer scale of financial support the Government has provided to businesses since March 2020. For many businesses, this support has allowed them to stay afloat during the pandemic. We also welcome the Business Rates Review announced in …
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Government Response Summary
The government states it has already provided targeted support through measures like Restart Grants for specific sectors and the new Recovery Loan Scheme, asserting that this ensures support is more tailored as recommended by the Committee.
Department for Business and Trade
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11
Conclusion
Accepted
Para 40
We are particularly concerned for ‘bricks-and-mortar’ retail which is unable to compensate for physical closure,...
Conclusion
We are particularly concerned for ‘bricks-and-mortar’ retail which is unable to compensate for physical closure, as well as businesses such as those in the ‘live events’ industry which, though not legally forced to cease operations, have seen a collapse in …
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Government Response Summary
The government highlights existing and new measures, such as the Restart Grants for hospitality and leisure sectors and the Recovery Loan Scheme, which they state are designed to provide more targeted support and address the concerns about certain industries.
Department for Business and Trade
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12
Recommendation
Accepted
Para 41
We recommend that if the Government returns to any form of tiered system or localised...
Recommendation
We recommend that if the Government returns to any form of tiered system or localised lockdowns, that financial support for business should reflect that.
Government Response Summary
The government claims it has already flexed business grant support throughout the pandemic to reflect changing restrictions and is providing new targeted support like Restart Grants and the Recovery Loan Scheme, which they state will ensure support is more targeted as recommended.
Department for Business and Trade
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13
Recommendation
Accepted
Para 42
We expect the Government to respond to the pandemic with more nuanced and targeted policies...
Recommendation
We expect the Government to respond to the pandemic with more nuanced and targeted policies in future, and recommend that the Government uses the Budget to review the support it has offered to businesses and announce more targeted support aimed …
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Government Response Summary
The government states it has already provided and continues to provide targeted support through measures like Restart Grants and the new Recovery Loan Scheme, which they claim ensures support is more targeted in line with the Committee's recommendation.
Department for Business and Trade
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14
Recommendation
Accepted
We have previously called on the Government to attach conditions to the use of taxpayer-funded...
Recommendation
We have previously called on the Government to attach conditions to the use of taxpayer-funded support and are disappointed that, on each occasion measures have been extended, the Government has failed to do this. We recommend that the Government reviews …
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Government Response Summary
The government accepts the recommendation to combat fraud and claw back funds, committing over £100 million to a new Taxpayer Protection Taskforce with 1,265 HMRC staff. It will also strengthen law enforcement for Bounce Back Loans and continue to work with agencies to recover funds, though details of recovery and prosecution approaches will not be made public.
Department for Business and Trade
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20
Recommendation
Accepted
We welcome the strong level of engagement between the Government and business in the early...
Recommendation
We welcome the strong level of engagement between the Government and business in the early months of the pandemic. The Government must be as open with the business sector as possible, particularly by providing reasonable notice and 24 The impact …
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Government Response Summary
The government accepts the recommendation for proactive and ongoing engagement with businesses and trade union leaders. It confirms plans to continue engagement, communicate changes with sufficient notice, and build feedback into policymaking as the economy recovers.
Department for Business and Trade
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