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House of Commons Hansard
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Oral Answers to Questions
18 May 2020
Volume 676

Treasury

The Chancellor of the Exchequer was asked—

Self-employment Income Support Scheme

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What plans he has to modify the self-employment income support scheme as part of the Government’s covid-19 lockdown exit strategy. [902683]

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The self-employment support scheme opened last week ahead of schedule and provides support worth up to £7,500 to millions of individuals. I am pleased to tell the House that, at the end of yesterday, there had been more than 2 million claims, with grants worth £6 billion in total being claimed for. Those people will have the money in their bank accounts within six working days of their claim, and of course, I will keep the scheme under review.

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I thank the Chancellor for his response. Despite him saying that the self-employment scheme is one of the most generous in the world, tens of thousands are still missing out—new starters, pay-as-you-earn freelancers, those paid through dividends and those earning over £50,000. I have three simple questions for the Chancellor. Will the self-employed income support scheme be extended in line with the job retention scheme? Are there plans to lift the cap on profits? And will he please look again at supporting new starters?

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We have discussed these things before, but I do not believe that removing the cap would be the right or socially just thing to do. The average income of those above the cap is £200,000, and 95% of those who are self-employed fall underneath the cap.

Covid-19: Economic Support

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What steps he is taking to support the economy during the covid-19 outbreak. [902688]

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What steps he is taking to support the economy during the covid-19 outbreak. [902692]

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Our plan to support businesses and individuals is one of the most comprehensive in the world. We have provided tens of billions of pounds in cash grants, tax cuts and discounted loans for businesses; deferred taxes for those who are self-employed, employed and in business; a world-leading job retention scheme to keep as many people in employment as possible; income protection for the self-employed; and a strengthened safety net to protect the most vulnerable in our society.

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Successful businesses in the tourism and hospitality industries before the lockdown will face a very different reality at the end of it, with overseas visitors gone for the foreseeable future and social distancing in place. These businesses need time to reinvent themselves for the new post-covid environment. What measures will the Chancellor introduce to enable much greater flexibility in the furlough scheme to support them as they prepare for this new reality?

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It is precisely because of the time it takes for businesses to ramp up that last week, I announced an extension to the furlough scheme all the way through to October, to provide that runway for growth—in particular, for those who will open later in tourism and hospitality. As I said, we will introduce flexible furloughing in the extension period of that scheme.

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Those on fixed-term contracts are in a particularly difficult situation where employers have placed them on furlough but are unwilling to extend it past their contract end date. One employer highlighted to me that that is because they are concerned that if they continue to furlough an employee without formally extending the contract, Her Majesty’s Revenue and Customs will deem the furlough frivolous and seek reimbursement. Can the Chancellor confirm that employers can continue to furlough those whose fixed-term contracts have ended without any financial repercussion?

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I am happy to look at the specific example mentioned. It is important for us—and to protect the taxpayer—that we are paying furlough payments to those who are genuinely in employment and have a formal employment contract, but I am happy to look at that example.

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I welcome the right hon. Member for Wolverhampton South East (Mr McFadden) back to the shadow Front Bench.

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Thank you, Mr Speaker.

Despite the interventions that the Chancellor has announced, some of our major industrial companies find themselves locked out of the lending scheme for the largest firms—the covid corporate financing facility—because they are not classed as investment grade. These companies support hundreds of thousands of jobs, either directly or through their supply chains, and are often the main employers in the towns and cities where they operate. Will the Government show the same flexibility and urgency in getting finance to these companies, which make up the industrial backbone of Britain, as they have done through the loan scheme for small companies, so that we can retain as much economic capacity as possible through this crisis?

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The right hon. Member is absolutely right: finance should flow to the industrial base of our country. The investment grade rating, which relates to the corporate financing facility that the Bank of England runs, is important. Because that money is accessed by companies without any additional credit check by the Government, it is right that an investment grade rating is used, to protect the taxpayer. We have taken a flexible and generous interpretation of that, providing companies with the ability to use their bank rating to get access. For those companies for which commercial paper is not the right approach—many of the industrial companies he mentioned—we have a larger coronavirus business interruption loan scheme programme, and I am in conversations with various industry stakeholders to ensure that that is appropriately sized to provide finance to every part of our industrial base.

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Research by the Chartered Institute of Personnel and Development today released today has found that participants in the furlough scheme would otherwise have made up to 35% of their workforce redundant, rising to half the workers in hospitality, where the uptake of the scheme is particularly high at about 80%. Hospitality and tourism were first out and will be last back. Many of these companies have no income and are building up debt, and may feel compelled to sack workers if they are asked to pay more by the Government at the end of July. How does the Chancellor intend to prevent this and to support this part of the economy in the months ahead?

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It is precisely the retail, hospitality and leisure sector that has received the most direct fiscal support from the Government through cash grants of £10,000 or £25,000 and a business rate holiday for the entire year—well beyond the point of reopening. That represents significant support, and the extension of the furlough scheme through to October gives those companies enough of a runway to grow back into a safe space.

Coronavirus Job Retention Scheme

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What plans he has to extend the scope of the coronavirus job retention scheme. [902690]

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As I announced last week, the coronavirus job retention scheme has been extended by four months until the end of October.

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New starters not registered with HMRC before 19 March and agency staff workers are some of those who currently find they are in limbo when it comes to accessing the job retention scheme. What more can the Chancellor do to help these workers now facing hardship?

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When I announced the scheme, we said that those who were on real time information and had notified HMRC on 28 February would be eligible. That covers 29.5 million workers in this country. We found a way to extend that to 19 March—the day before the announcement was made. That protects the taxpayer against fraud and enables as many of those people to be included as possible. It brought another 230,000 people into the scheme. It is important to remember that this scheme now covers close to 30 million workers. As of the end of last week, 8 million people from about 1 million businesses are covered by the scheme and having their wages paid by the Government to protect their jobs and their future security.

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We now head down to the south-west and the Chair of the Select Committee, Mel Stride.

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Thank you, Mr Speaker.

The future fund will provide venture capital-backed businesses with vital support, but of course it excludes investments made through the enterprise investment scheme and the seed enterprise investment scheme. It is certainly the case that there is significant public subsidy within those two schemes. However, businesses supported by them still face the challenges of the virus and, where successful, still go on to generate significant numbers of jobs. Will my right hon. Friend therefore take a second look at the qualification requirements for the future fund to see whether EIS and SEIS might be accommodated in some way?

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As my right hon. Friend will know well, EIS is a notified EU state aid, and that is what presents the challenge to providing EIS relief for convertible loan instruments into the future fund. That said, guidance was published today, and the fund will be open for applications on Wednesday. I have been crystal clear that should applications exceed the initial £250 million provided, I will be more than happy to expand the scheme. I think this will be a vital part of fuelling our recovery, because, as he said, these companies provide the growth of tomorrow and they deserve our support.

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Labour supported the introduction of the furlough scheme, and we have consistently called for it to become more flexible. We recognise that it cannot persist forever. However, according to press reports, the Treasury is considering asking all employers to pay 40% of employee wages on the JRS from 1 August, which risks a massive spike in job losses.

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As I think the shadow Chancellor has acknowledged previously, we are in deep consultation with both unions and business groups to ensure that we get the design right for the second part of this scheme. It is right both for the economy and, indeed, for the taxpayer to ask employers to make a contribution to paying the wages of their employees. They will have the benefit of flexibility in furloughing to help offset that. I cannot comment now on this, but I did say that details will be provided by the end of the month.

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I appreciate the Chancellor’s comments, but we really need clarity around whether he is considering evidence from other countries, which, in many cases, are calibrating changes to their salary backfill schemes with the lifting of the lockdown. Is he looking at that evidence, particularly on the potential impact of unemployment, or is he only looking at potentially the introduction of a uniform contribution from 1 August?

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As I said, there will be details at the end of the month, but the hon. Lady can rest assured that I speak regularly with my counterparts in countries across the world to learn from their experience and will make sure that our scheme continues to be one of the most generous, comprehensive and effective anywhere in the world.

Covid-19: Local Authorities and Devolved Administrations

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What fiscal steps he is taking to support local authorities during the covid-19 outbreak. [902684]

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What fiscal steps he is taking to support local authorities during the covid-19 outbreak. [902686]

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What fiscal steps he is taking to support (a) local authorities and (b) the devolved Administrations during the covid-19 outbreak. [902697]

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What recent discussions he has had with the Secretary of State for Housing, Communities and Local Government on the adequacy of funding for local authorities during the covid-19 outbreak. [902711]

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What recent discussions he has had with the Secretary of State for Housing, Communities and Local Government on the adequacy of funding for local authorities during the covid-19 outbreak. [902712]

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We have announced £3.2 billion of new funding for councils, alongside the £3.4 billion of further support with cash flow. I am in regular contact with Ministers in the relevant Department on further support.

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I welcome the Treasury’s unprecedented package of support, including the provision of grants, which are benefiting many of the smallest businesses right across Bishop Auckland, but many small businesses in my constituency and others do not pay business rates because they are in shared spaces. What steps is the Treasury taking to make these grants more readily available?

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My hon. Friend raises an important point, which is why we have allocated a further £617 million of support to local authorities for discretionary payments for cases such as the one that she highlights. Local authorities are free to focus those payments in line with local need.

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District councils are the level of local government closest to residents, and I know that they very much appreciated the support that the Government have provided, but responding to the virus has incurred both additional expenditure and a loss of revenue—they have had less income from things such as car parking and leisure services. How can the Minister ensure that district councils are able not only to meet their short-term demands, but to ensure a long-term, sustainable future?

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My hon. Friend is right to point to the particular pressures on lower-tier councils, which is why councils such as Rugby have benefited from more than £1 million of additional funding. Seventy per cent of district councils have received more than £1 million, which is why the profile for the second allocation of £1.6 billion was changed to recognise the points that he highlights.

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I pay tribute to the Chancellor and to the Chief Secretary for their approach. They will appreciate that the sums involved are staggering, but obviously necessary at this time. Does my right hon. Friend recognise that this is an occasion where we appreciate the strength of the Union—the financial muscle to protect economies and communities in all parts of the UK? Has the Chancellor calculated whether individual nations could have acted independently and, if so, what impact has the collapse in the recent oil price had on that assessment?

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My right hon. Friend is absolutely right. That is why £7 billion has been allocated through the Barnett consequentials, including £2.1 billion of additional funding to the Welsh Government. That, of course, sits alongside the UK-wide measures, such as the furlough scheme or the self-employed income support scheme that the Chancellor has announced.

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In Bristol, that current funding gap is £82.4 million as a result of the current crisis. Will the Treasury consider allowing local authorities to retain all surpluses against the business support grants so that they can be reinvested into local short-term interventions to get us through this crisis?

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What we have seen through this crisis is an unprecedented level of support, including the £3.2 billion that has been announced and the further £600 million of support specifically targeted at the care home sector. That sits alongside earlier funding, including the estimated 4.3% real-terms increase that councils received this year.

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Although the Government’s announcement of additional funding for local authorities in England is welcome, care staff, refuse collectors and social workers need to know that their work will continue to be funded once the current lockdown is over. My local council, Stockport, is facing a staggering shortfall of £25 million, with the cost of the coronavirus response standing at £41 million. Will the Minister offer those workers that assurance?

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The hon. Gentleman is right to highlight the importance of that sector. It is why the initial £1.6 billion funding announced in March was not ring-fenced. It sits alongside the £600 million announced last week. In addition, there is money to help with cash flow, including the £850 million targeted at adult social care, which was paid in one go in April.

Local Transport Infrastructure

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What fiscal steps he is taking to improve local transport infrastructure. [902685]

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What fiscal steps he is taking to improve local transport infrastructure. [902694]

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My hon. Friend the Member for Keighley (Robbie Moore) has, I know, been working hard to highlight the important pedestrian crossing issues in his constituency, and I am committed to working with him on that. He can benefit from the significant funding for cycling and walking included in the £2 billion announced recently.

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I thank my right hon. Friend for that response, and I am pleased to hear that he will work with me in delivering a pedestrian bridge. May I seek further reassurance that he will meet me and the transport team, so that we can deliver this vital piece of local infrastructure, which will connect Silsden and Steeton in my constituency?

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I am happy to continue to liaise with my hon. Friend on this important issue. He will know that, in addition to the £2 billion for walking and cycling, we also announced at the Budget £4.2 billion for long-term local transport. His authority, West Yorkshire Combined Authority, will be able to benefit from that.

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I thank the Treasury team for their leadership throughout this crisis. As they look at ways to stimulate our economy, will they consider issuing a UK green gilt as a specific way to fund local transport infrastructure and to affirm this Government’s commitment to climate change?

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My hon. Friend raises an important point. Although at present we have no plans to do as he suggests, he will be well aware, from the green finance strategy, that the Government remain open to the introduction of new debt instruments, and I am happy to continue to discuss the issue with him.

Business Rates Relief

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If he will take steps through the Government’s Business Rates Review to tackle exploitation of business rates relief. [902691]

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The Government have committed to undertake a fundamental review of business rates and published the terms of reference at the Budget. The review will be comprehensive and look at the effectiveness and operation of different reliefs and compliance with the tax. The call for evidence will be published in the coming months; stakeholders will be invited to contribute their views throughout the review, and I will welcome any thoughts or ideas my hon. Friend may wish to add.

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I welcome the Government’s wholesome package of support for the business sector and the hospitality and tourism sector, showing that we are a Government for the many, not the few. Would the Minister meet me to discuss how we might close the loopholes that may be used by those who would opportunistically exploit current business rates?

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If there are people who are illegitimately taking advantage of loopholes in the rates, I am of course happy to discuss that. I remind my hon. Friend that there may well be circumstances in which people are in fact complying with the rules. It is a fiddly area, and I want to be certain that we are going after the people we should be going after.

Covid-19: 2019 Loan Charge

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What assessment he has made of the potential merits of suspending the 2019 loan charge during the covid-19 outbreak. [902696]

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My right hon. Friend will know that taxpayers with loan charge liabilities can already defer submission of their tax return until 30 September this year. Her Majesty’s Revenue and Customs has always worked very hard to support taxpayers who may need to help to managed their disguised remuneration liabilities, and this is no exception. HMRC will continue to offer people the time they need to settle, and of course that also applies to those who are affected by issues related to coronavirus.

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In September this year, we will be in the middle of the recession that we are about to face. Given the hundreds of billions of pounds that the Treasury has already committed to supporting business to get us out of this recession, it would take a relatively trivial amount to write off the damaging loan charge policy. Originally, the Treasury forecast that it would raise £3.2 billion from the policy, and less than £2.5 billion from employees. What does the Minister estimate he will now raise?

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The Treasury will have published its estimate at the time the original tax information was published. I understand the passion that my right hon. Friend brings to the issue, but I would remind him that 99.8% of taxpayers do not engage in disguised remuneration schemes, and the fact that we are supporting people across the country in their jobs and their livelihoods is not, in and of itself, a reason to let people who owe tax off the tax that is due.

Coronavirus Business Interruption Loan Scheme

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What recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the effectiveness of the coronavirus business interruption loan scheme. [902702]

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The Treasury is working closely with the Department for Business, Energy and Industrial Strategy to monitor the uptake and effectiveness of the coronavirus business interruption loan scheme. The scheme has already helped thousands of businesses since its launch on 23 March and is continuing to ramp up. As of 10 May, almost 36,000 facilities with a value of over £6 billion have been approved through the CBILS. SMEs now have a choice of over 60 lenders offering finance under CBILS, and further announcements on numbers will happen later this week.

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Despite that, the uptake of the coronavirus business interruption loan has been disappointing, leading to the bounce-back loans. Could we have much more accurate reporting on this, much more like the health statistics and perhaps also by region, so we can see what is actually happening?

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We are looking very carefully at the figures and we publish them on a weekly basis. I am having conversations with banks on a regular basis, and we are having a roundtable this week to monitor progress. We will look to make further interventions should that be necessary, but absolutely it is important that the loans get out quickly, as they have been designed to do.

Business Rates: Small Companies

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What recent discussions he has had with Cabinet colleagues on the number of small companies that pay business rates collectively through landlords that have been able to access cash grants through local authorities during the covid-19 outbreak. [902707]

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The Government have recently allocated up to an additional £617 million to local authorities to enable them to give grants to businesses excluded from existing schemes. That will enable many thousands of businesses in the situation described by the hon. Member to receive cash grants.

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We go over to the wonderful county of Lancashire and Cat Smith.

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Will the Minister ask local authorities to report on the extent to which landlords are passing on the grants to tenants, because it is not just in Lancaster and Fleetwood that we are seeing widespread evidence that that is not occurring?

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The hon. Lady makes a reasonable point. We are monitoring the effectiveness of all these schemes, and the way that local authorities are using their discretion in giving out those grants, but this is a matter that we will continue to examine carefully.

Covid-19: Regional Economies

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What assessment he has made of the effect of the covid-19 outbreak on regional economies. [902687]

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The Government are closely monitoring the impact of covid-19 on local communities across the UK. We are engaging with local authorities, local enterprise partnerships and mayoral combined authorities, and remain committed to levelling up opportunity all over the UK.

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The public transport infrastructure will be essential to Greater Manchester’s economic recovery, and funding has been provided to help Manchester Metrolink, but it is insufficient and the situation will be exacerbated because social distancing will mean that it can carry fewer passengers for the foreseeable future. Will the Treasury commit to fully funding Metrolink so that it can help to get the city region back on its feet?

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I have been in conversation with the Mayor of Greater Manchester, Andy Burnham, and the Treasury is well aware of this issue. At the moment, we have provided £630 million for councils. We have provided some funding to Metrolink and we will continue to explore the issue further.

Hydrogen Technology

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What fiscal steps he is taking to incentivise funding in hydrogen technology. [902689]

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My hon. Friend is right that hydrogen could play an important role in our transition to net zero, which is why we are investing up to £121 million to support a range of projects to explore and develop the potential of low-carbon hydrogen technology.

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Does my hon. Friend agree that incentivising low-carbon technologies such as hydrogen and carbon capture and storage will aid us in our recovery, help the Government to reach their net zero targets, and level up across all regions of the UK?

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My hon. Friend is absolutely right. Budget 2020 announced at least £800 million to develop carbon capture and storage infrastructure, and my hon. Friend will of course know that Teesside is one of four sites under consideration for support through that funding.

Transport

The Secretary of State was asked—

Covid-19: Repatriation of British Nationals

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What steps his Department has taken with the Foreign and Commonwealth Office to repatriate British nationals stranded overseas as a result of the covid-19 pandemic. [902641]

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What steps his Department has taken with the Foreign and Commonwealth Office to repatriate British nationals stranded overseas as a result of the covid-19 pandemic. [902644]

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We estimate that more than 1.3 million people have returned to the UK via commercial routes, the majority through our work to keep the vital routes open.

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It is hugely welcome that 1.3 million people have been brought home by commercial airlines. Will my right hon. Friend assure me that he continues to work with the Foreign and Commonwealth Office to ensure that support and guidance is available for those people who are struggling—there are many of them—to find commercial routes home?

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Yes, I can absolutely provide my hon. Friend with that reassurance. The UK has close links with Nigeria and elsewhere, and I am pleased that we have been able to support charter flights, thereby enabling around 1,700 British travellers to return home since 18 April.

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I thank my right hon. Friend for helping, with other Departments, to bring so many of my constituents home safely. Can he tell me, in my role as the Prime Minister’s trade envoy to Nigeria, what the situation is there with regard to the availability of aircraft? How many more repatriation trips are we looking to make?

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My hon. Friend’s great work as a trade envoy is known throughout the House. Some commercial routes are still available, we are keeping the international travel advice under constant review, and we are still, on a daily basis, organising charter flights to bring the remaining overseas British nationals home. I think there are around 20,000 still to repatriate.

Covid-19: Aviation Sector Workers

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What steps the Government are taking to support aviation sector workers during the covid-19 lockdown. [902647]

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We are speaking regularly to companies across the aviation sector to encourage them to draw on the Government’s various different packages of cross-economy financial support.

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With Gatwick on my doorstep, a lot of my constituents work in the aviation sector. Will the Secretary of State outline what support he is giving to airlines to make sure that they are employing people and continuing employment where they can? What support will he give to aviation workers who will need to transition into other forms of employment?

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My hon. Friend is absolutely right: we are making available a huge amount of support, including things such as the coronavirus large-business scheme—in other words, the coronavirus job-retention furloughing scheme—and various other business-interruption schemes, but it is true to say that airlines and the aviation sector in general are facing a particularly hard time. They were first into this crisis and we think there will be quite a long tail to their coming out of it. I am therefore working closely with my right hon. and hon. Friends in the Department for Work and Pensions to support workers who lose their jobs as well.

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The Scottish Government have given full business rates relief to the aviation sector; by contrast, the UK Government promised sectoral support for aviation before reneging. Last week, Willie Walsh floundered before the Transport Committee when trying to justify the cull of 12,000 British Airways employees—including many from BA CityFlyer, which is based at Edinburgh—despite having access to €10 billion of liquidity, the vast majority of which was generated by British Airways profits. What are the Government actually doing to prevent tens or even hundreds of thousands of job losses in the sector?

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Not only do we have the Bank of England scheme, which enables companies that would not ordinarily have the ability to raise money through a paper route; we also have the business interruption loan scheme for different-sized businesses, the time to pay flexibility, financial supports to employees and the VAT deferrals. We also have a special process in place, available only to the aviation sector, so that when it runs out of those other options, it can talk to us about it. That request needs to be made formally in writing to me. I then discuss it with the Treasury, and many aviation-oriented businesses are in the process of doing that.

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British aviation is in freefall. BA, Ryanair, Virgin Atlantic and now the Emirates are set to lay off tens of thousands of staff. The job retention scheme is becoming the job restructuring scheme. We cannot allow that. With the added difficulty and confusion of the Government’s travel quarantine measures, will the Secretary of State urgently bring forward an aviation support package for the sector, matching Labour’s commitment?

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It is a very welcome change, actually, because ordinarily I stand at this Dispatch Box and from my opposite numbers hear a lot of attacks on the aviation sector. I absolutely will bring forward enormous amounts of support to aviation businesses, including all those schemes I just mentioned. There are 43,500 furloughed staff right now from the airlines alone and another 2,600 from airports. I am acutely aware of the job losses and proposed job losses, about which we are very concerned, which is why we have the additional scheme, the Birch process, with the Treasury. Although I cannot go into details of individual cases, for reasons of confidentiality, I can assure the hon. Gentleman that that work is very much ongoing.

Covid-19: Transport Sector

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What steps his Department is taking to support the transport sector during the covid-19 pandemic. [902661]

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The Government have announced financial support measures worth £350 billion and are working with the sector to overcome specific challenges.

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We have heard about the challenges of the aviation industry, including the threat of 12,000 BA redundancies, but the entire transport industry is worried. Haulage is seeing volumes dropping and revenues plummeting, the coaching sector faces imminent ruin, and holiday companies have no idea if the Government will stand by them and their customers. What specific action is the Secretary of State taking to ensure we actually have a transport industry left when all this is over?

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The answer is a multi-billion pound programme that rescued our railways; £400 million used to keep our bus services going; and a multi-million pound plan for critical freight routes, which enabled us to keep 16 routes available, with 17 different contracts in place, ensuring vital food and supplies to this country.

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The Secretary of State will be aware that the aviation industry is a sector in need of support. Will he consider airbridges so that those entering the UK from countries where the infection rate is below one would not be subject to quarantine? This would boost confidence in aviation travel and target safety where it is most needed.

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In answer to a previous question, I should say that final details of the quarantine scheme will be released soon and come in early next month. We should indeed consider further improvements—for example, airbridges enabling people from other countries that have achieved lower levels of coronavirus infection to come to the country, but those are active discussions that go beyond what will initially be a blanket situation.

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I call Minister Andrew Stephenson to answer the substantive question tabled by Kevin Hollinrake. Minister—my word!—Minister Andrew Stephenson.

English Regional Transport Infrastructure

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What steps he is taking to increase spending on transport infrastructure in the English regions. [902634]

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It is a great joy to join you from sunny Pendle, Mr Speaker.

We are investing in transport infrastructure to level up the United Kingdom, with £500 million to reverse the Beeching cuts and £5 billion extra support for buses and cycling.

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Some of us do not have those hair problems, Mr Speaker.

Will the Minister confirm his commitment to investment right across the north—not just the big projects, such as northern powerhouse rail, from the east coast through the west coast, but the smaller but no less important projects, such as the dualling of the A64 in my constituency?

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I am happy to provide my hon. Friend with that reassurance. The integrated rail plan is looking at various transport investments in the north, and we very much intend that still to report by the end of this year. On the dualling of the A64, I can assure him that that is now officially in the road investment strategy 3 pipeline, and it will be investigated carefully as we prepare to make decisions for the next strategy.

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It is so good to see so many cities and towns now putting in place infrastructure to support active travel, particularly cycling, but not everyone can work or cycle to work, not everyone has a car and no one wants the new normal to be cars clogging up the streets and despoiling the clean air. Why are the Government not working with city regions and other councils on a safety-led scaling up of passenger transport, why did they not talk to local leaders about public transport before urging a return to work and why is there a support package for Transport for London but not for other major cities?

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We are working closely with all the metro Mayors and the devolved mayoral combined authorities to get this policy right. It is incorrect to say that we have provided support only for Transport for London. As was talked about in Treasury questions, we have already provided significant support for things such as the Manchester Metrolink and other schemes. It is right to say, though, that we need to ensure that inclusive travel is at the forefront of this, and there is a huge amount of work under way in the Department to ensure that disabled people particularly, are able to return safely to work and use the public transport network that so many depend on.

Covid-19: Public Transport Workers and Key Worker Rail Users

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What recent steps he has taken to protect (a) public transport drivers and (b) other public transport workers during the covid-19 outbreak. [902638]

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What recent steps the Government have taken to help prevent key workers who (a) work on and (b) use the rail network contracting covid-19. [902645]

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What recent steps he has taken to protect (a) public transport drivers and (b) other public transport workers during the covid-19 outbreak. [902650]

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I pay tribute to all public transport drivers and workers, who have been working incredibly hard to ensure that those on the frontline can get to work. New safer transport guidance was published on 12 May, and we are working closely with transport operators across the sector on its implementation.

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Last week’s figures from the Office for National Statistics show that public transport drivers have one of the highest covid-19-related death rates compared with other professions. With the Government encouraging people to go back to work and many workers having no choice but to use public transport, what extra measures have the Government taken to protect drivers and other public transport workers?

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I thank the hon. Gentleman for his question. The safety of public transport workers is of course paramount for the Government, and we have been working with operators to ensure that additional measures are put in place. These include risk assessments, looking at who should be at work, social distancing and face coverings, workforce planning, queue and passenger flow management, and the way that emergency incidents are dealt with, in addition to cleaning ventilation, communications and other forms of training.

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[Inaudible.]

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Order. I am afraid we cannot hear Clive Lewis.

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I thank the Minister for his answer. To protect public transport workers’ safety, they need job security. The Government’s funding arrangement runs out with the Metro and Nexus on 9 June, so it is fine that risk assessments are taking place, but we need the trains to run. Can the Government tell me when the arrangements will be made with the Metro and Nexus to allow our crucial Metro system to carry on running?

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We continue to work with the metro Mayors to look at these issues, and we work closely, in conjunction with Treasury Ministers, to ensure that the funding necessary is provided and that we can support public transport networks right across the length and breadth of the United Kingdom.

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We now come to Jim McMahon. I congratulate him on his new job.

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Thank you very much, Mr Speaker. May I start by paying tribute to our frontline transport workers, and may I offer my condolences to the families of those who have lost their lives through covid-19?

The latest advice from the Government now explicitly rules out providing personal protective equipment, such as face masks, to drivers, instead reserving them for health and social care workers. The response on this is that the health advice apparently does not support it. If the evidence says that masks will not save them, gloves will not save them and banning the handling of cash will not save them, that begs the question: what will save them, given that transport workers, including bus drivers, are more likely to die from covid-19 than the general population? Can that evidence be provided to the House of Commons Library so that it can be properly looked at and investigated? We cannot allow transport workers on the frontline, working to keep our country moving, to face a greater risk than the general population.

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I start by welcoming the shadow Secretary of State to his position. It continues to be Public Health England advice that face masks are not necessary outside clinical settings or where Health and Safety Executive employer risk assessments suggest that it would be necessary to protect against non-covid-19 risks. However, workers should refer to the guidance, which I mentioned, when considering whether wearing a face covering would be appropriate and they should consider using a face covering when social distancing is not possible.

LNER: Grimsby to London Service

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What recent discussions his Department has had with LNER on a direct rail service between Grimsby and London. [902640]

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Recent analysis by LNER indicates that such a service could be viable and the Department is exploring this further.

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We now go, with audio only, to Sir Edward.

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Mr Speaker, I am sorry that you do not have a picture because the broadband in rural Lincolnshire is so bad. That is why it is even more important that we get our through train from Grimsby and Cleethorpes down to London, which we have been promised again and again. It is a huge catchment area. All the Government have to do is to kick-start this project. Given that they are spending £100 billion on HS2, if they just give us £1 million, LNER will give us the through train. Will the Government fulfil their promises and kick-start the through train to London from Grimsby and Cleethorpes?

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My right hon. Friend has lobbied me on this several times already. I know that the rail Minister, my hon. Friend the Member for Daventry (Chris Heaton-Harris), is looking very closely at what my right hon. Friend says, and hopefully he may have some good news in due course.

Covid-19: Financial Loss to Rail Passengers

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What steps he has taken to protect rail passengers from financial loss during the covid-19 outbreak. [902636]

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What steps he has taken to protect rail passengers from financial loss during the covid-19 outbreak. [902648]

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We have extended refunds to all ticket types and made claiming refunds easier to ensure that passengers do not lose out financially.

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What discussions has the Minister had with rail operators such as Southeastern over season ticket holders who have just a couple of months left on their season ticket, and who, because of the virus, have been unable to travel but are ineligible for a refund? These commuters have suffered quite considerably and it would be welcome news if some assistance were available for them.

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The Government have been talking to train operators throughout this whole process, as my hon. Friend would expect, but we do not have plans to extend season tickets. Season ticket holders are already entitled to request a refund in accordance with the National Rail conditions of travel. Over 100,000 season ticket holders have already claimed refunds totalling £150 million in the current covid travel restriction period.

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Mr Speaker, you may hear my toddler chuntering away in the background.

It is crucial that people who are doing the right thing and avoiding public transport are not left out of pocket. Will my hon. Friend therefore confirm that passengers in Morley and Outwood who have purchased their advance tickets—as well as those with season tickets, which he has already mentioned—will be able to receive a refund without any charge for any unused travel during the outbreak?

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We have worked with the rail industry to temporarily extend refunds to all ticket types. These changes reflect the exceptional circumstances and the Government’s advice to avoid unnecessary travel. Anytime off-peak and super off-peak tickets can be refunded as usual, and since 17 March all admin fees have been waived. Advance tickets purchased before 23 March for travel from that date onwards are eligible for a fee-free refund, whether the train is cancelled or not. Unused carnet tickets can be refunded or extended depending on the train operator, and season tickets, including station car park season tickets, are already refundable, so we have not changed that policy. A £10 admin fee remains for season ticket refunds.

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Well, you have made your husband very happy.

Rail Services: West Sussex

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What steps his Department is taking to help improve rail services in West Sussex. [902642]

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I am sorry, Mr Speaker—I was worried about my husband for a moment there. Problem or opportunity, whichever way you take it.

The Government are investing around £48 billion in maintaining and upgrading the rail network between 2019 to 2024, focused on increasing reliability and punctuality for passengers, including in West Sussex.

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I thank my hon. Friend for his reply and for the significant extra investment that the Government are making in rail transport. As we seek to regrow the economy, may I ask him to consider the investment project known as the Arundel chord, which would enable trains to turn east near Arundel and travel directly to Horsham, significantly improving the resilience of rail services for my constituents in Arundel and South Downs?

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Network Rail has recently concluded a study of services in the West Sussex area, produced in consultation with local authorities and stakeholders. While the Arundel chord might have value as a diversionary route, its capacity would be limited and it would cause a negative impact on existing Arun Valley and West Coastway services. However, the study has suggested numerous beneficial changes involving train services and infrastructure, which my Department will take forward with Network Rail and which will benefit all my hon. Friend’s constituents.

Rural Mobility and Supported Bus Services Funds

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How many applications have been made to the (a) rural mobility fund and (b) supported bus services fund since February 2020. [902635]

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What support his Department is providing to help ensure that bus services continue to operate during the covid-19 outbreak. [902639]

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The Government are providing significant funding for the bus industry at this time. Our covid-19 funding package for England’s buses totals £397 million. As part of this, local authorities have access to a £30 million supported bus services fund. To date, 46 bids have been received. No bids have yet been received for the rural mobility fund because the deadline is 4 June.

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Of course, hydrogen-powered buses have a much longer range, making them more suitable for rural routes and rural areas, and we have some of the leading hydrogen-powered bus manufacturers in the world. The Government have introduced the all-electric bus town scheme. Where is the equivalent for hydrogen?

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The hon. Gentleman is right to say that we are focusing on new all-electric bus towns, which is an exciting part of the money that the Prime Minister has announced to support buses up and down the country, but it is not right to say that we are not focusing on hydrogen buses. We have actually allocated £4.36 million to hydrogen buses and supporting infrastructure.

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The Government have recently published the safer transport guidance for operators, which is very welcome indeed, but I wonder whether the Minister could set out what steps are being taken to ensure the financial viability of bus services while maintaining social distancing.

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I can tell my hon. Friend that we are working urgently to provide further support to bus operators so that they can run service provision as people return to work and at the same time observe social distancing.

Covid-19: Active Travel (Local Authorities)

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What support the Government are providing to local authorities to promote active travel among people returning to work as the covid-19 lockdown is eased. [902643]

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On 9 May, the Government announced a £2 billion package of support for active travel. This includes £250 million of funding this financial year to support people to take up cycling and to enable local authorities to make their roads and pavements safer.

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I welcome the £250 million funding so that cycling and walking improvements can be rapidly installed ahead of the expected tidal wave of traffic as people go back to work, but when will the Government finally publish their long-awaited revised design guidance on cycle-friendly infrastructure and the evidence that they commissioned back in 2018 on the amount of funding needed to meet their targets to double cycling and increase walking by 2025?

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I recognise that the hon. Lady is a really keen cyclist. We want to boost cycling across the country. The schemes that she refers to are being worked at, and we can provide further details of those in due course.

Covid-19: Food Delivery Drivers

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What discussions he has had with Cabinet colleagues on protecting the health of food delivery drivers during the covid-19 outbreak. [902649]

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Ministers have been in discussion with Cabinet colleagues about measures to protect the welfare of delivery drivers, including those carrying food.

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At a time in this crisis when many of us are very dependent on home delivery, there is growing evidence that children as young as 16 on a provisional licence are wobbling on to the road, holding a mobile phone with Google Maps on it in one hand, to make deliveries. That is a very dangerous situation. Is the Minister not aware of the large number of reports of young people being killed and seriously injured because they are not qualified to drive and are doing a very dangerous task?

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Of course the Government would be concerned by the incidents that the hon. Gentleman mentions. Ensuring the safety of drivers making deliveries is of paramount importance, and the Government do not want anyone to feel unsafe or unsure about whether they have the necessary equipment to work safely. That is why detailed guidance has been issued to all transport workers, in conjunction with our colleagues in the Department for Business, Energy and Industrial Strategy.

British Airways

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What recent discussions his Department has had with representatives of British Airways on its planned restructuring. [902637]

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The Department and I are working with airlines, airports and unions to understand the full impact that covid-19 is having on the sector and its workers.

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Many of my constituents are long-serving members of British Airways staff, yet they face redundancy or being stripped of their terms and conditions, despite BA furloughing some 23,000 staff. Does the Minister think that is responsible behaviour by Britain’s flag carrier? What pressure is she bringing to bear on the company? Will she guarantee that any bail-out will come with stringent and binding conditions on reducing carbon emissions?

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I understand that it is a worrying time for airline staff and their families. I have been speaking regularly with companies across the sector to encourage them to draw down on the unprecedented support package. Terms and conditions of employment are for negotiation between the employee and the employer, but we in the Department stand ready to support any workers affected.

Gosport Ferry Service

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What steps he is taking to support the Gosport ferry service. [902653]

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My right hon. Friend the Secretary of State, my officials and I are working with the company and the councils, alongside the extensive financial packages announced by the Chancellor.

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I thank the Minister for her reply. I know that when the Secretary of State met council leaders last week he spoke positively about the Government providing a package of support to secure the future of the ferry service. I look forward to the Department achieving that. The continuation of the Gosport ferry after this crisis is vital to the connectivity of communities along the south coast, but so too is tackling the climate crisis. As the fourth most congested city in the UK, Portsmouth faces some of the worst air pollution outside London. The Pompey Street Space campaign aims to give pedestrians and cyclists priority, widen narrow pavements and create commuter cycle routes to allow people to travel safely. What steps will the Department take to—

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Order. We are going over to the Minister to answer.

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I thank the hon. Gentleman for his question, although I missed his last point. Absolutely, the Gosport ferry provides an important service for the local community to navigate their way around the peninsula. That is why my right hon. Friend the Secretary of State and I met the council leaders. We have spoken to the organisation, and my officials are working with the councils to find a suitable support package for the operator in order to maintain that service.

UK Aviation Sector

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What discussions he has had with Cabinet colleagues on the future of the UK aviation sector. [902655]

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We are working across Government and closely with the sector on establishing a clear vision and objectives for the recovery of the sector.

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The day prior to the announcement of BA CityFlyer redundancies at Edinburgh airport, Willie Walsh gave evidence to the Transport Committee in which he did not mention that once. It is inconceivable that he was not aware of the announcement. Does the Minister share my frustration that that lack of transparency simply prevents Parliament from performing effective scrutiny?

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The aviation sector is so important for the UK economy, which is why it has been able to draw down on an unprecedented support package. The Department and I have set up a restart and recovery unit to work with industry, including unions, ground handlers, airlines and airports, in order to come up strong measures to aid the recovery and restart of the aviation sector.