Meeting of the Parliament (Hybrid) 11 November 2020
I welcome the debate. I know that hospitality has been one of the hardest-hit sectors in the economy. Like every other member in the chamber, I have spoken to many organisations in my constituency, particularly those in the hospitality trade, that have expressed their frustration and anger about what has happened so far, as well as their welcome for that and their aspirations for the future. However, I will come back to constituents’ points in a moment.
It is clear that the impact of the coronavirus in Scotland has been profound. Sadly, my constituency has had the highest level of deaths per head in the country. The coronavirus is the biggest challenge that society has faced in our lifetimes, and the measures that we take to deal with it must reflect the magnitude of what we face. The steps that have been taken in Scotland to contain the virus are unprecedented, and they have changed life as we know it.
Although the current lockdown measures are essential right now, they have damaging consequences for our economy, living standards and physical and mental health. I welcomed the chancellor’s introduction of the furlough scheme in March, and I welcomed his recent decision to extend the scheme to March 2021. However, I believe that the delay in announcing the extension until the 11th hour will have cost jobs, as some employers had already taken the difficult decision to make people redundant because they expected the scheme to be withdrawn.
I welcome the chancellor’s indication that, as was the case in March, employers will be able to bring back people whom they have made redundant and include them in the furlough scheme, which might go some way towards addressing some of the job losses.
Dr Liz Cameron, the chief executive of Scottish Chambers of Commerce, made interesting comments on that point last week. She said:
“This announcement gives Scottish businesses a glimmer of hope that we may be able to survive and work through this crisis. What we cannot do is to continue with uncertainty which is impacting business confidence, employee motivation and our ability to plan and invest.”
She went on:
“However, the furlough scheme alone will not be enough to save businesses so the Chancellor must continue and expand his commitment to providing businesses with guaranteed grants support to help businesses recover.”
[Interruption.] I am sorry, but I will not take an intervention, as I have only four minutes.
I welcome the extension of the UK Government’s self-employment income support scheme and the confirmation that the level of grant will be 80 per cent of average trading profits for the period from November to January.
As I said, I want to highlight some constituents’ issues. I agree with Dr Cameron’s comments, and those views are shared by local hospitality businesses. Businesses still have fixed costs to cover, such as electricity, gas and insurance costs, among many others. If they cannot trade, all the funding mechanisms that have been provided thus far, including furlough, the wide number of Scottish Government grants, which include the hardship grant and the grant that is outlined in the strategic framework that has been available from 2 November for businesses that are required to close—it is worth between £2,000 and £3,000, depending on rateable value—the small business bonus, the additional 100 per cent relief from non-domestic rates for properties in the retail, hospitality and leisure sectors, and the £10,000 and £25,000 grants, will have been provided in vain. If businesses do not have consistency in the future as regards UK Government policy, all the moneys that have been invested thus far to help them—especially those in the hospitality sector—will have been for nothing.
I agree with the strategic framework, and I believe that it is the right mechanism for the present situation, as I said last week. I can see that the Presiding Officer is telling me to wind up. Businesses need that stability. I welcome the debate. I also welcome the fact that the Governments have been working together, but if the UK Government does not want to do more, it should give this Parliament the funds and the powers to do so.