Anneliese Dodds calls for clarity on business support post-Covid

Anneliese Dodds, the Labour MP for Oxford East, said the Government should swiftly set out what it plans to do to help businesses with tax relief and furlough payments for staff as England’s lockdown measures loosen as part of the ‘roadmap’ set out by the Prime Minister on Monday.

Responding to the four-step plan, which could see all restrictions come to an end by the middle of June at the earliest, Ms Dodds, who is the Labour shadow chancellor, said many businesses were still anxious to find out what support was available while restrictions remain in place over coming months.

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Speaking to BBC Radio 4’s Today Programme, she said: “Yet again we have seen the announcement of an approach to restrictions and a timescale for restrictions but without that clarity about business support. This is now I think the fourth time we have had that kind of pattern.”

“Businesses have been put through an enormous amount of uncertainty.

"They should know now the business rates holiday will continue, the VAT reduction for hospitality businesses will continue, and that there will be a continuation of a furlough scheme – a reformed one – but that it will be there while the restrictions continue.”

Throughout the pandemic, several measures have been used to prevent businesses from going under.

These include the furlough scheme, which has paid workers 80 per cent of wages on behalf of employers; it is due to come to an end in April.

Business rates relief has allowed companies to apply for a ‘holiday’ from the tax via their local council, and focus on using their savings to pay other costs.

And the hospitality sector, which has largely had to remain closed for most of the pandemic as ‘non-essential’ businesses, has been offered a reduction in VAT.

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This allows them to either pass on the cheaper price of goods or services to customers, encouraging more spending, or to recoup costs behind the scenes by charging customers the normal price.

The chancellor of the exchequer, Rishi Sunak, is due to announce how these financial support measures for businesses will continue in his budget statement on March 3, but Ms Dodds said this was not soon enough.

The Oxford East MP warned this may be too late for some businesses, and said a ‘window’ in which support was extended and gradually phased out was needed.

She said: “The problem of not having that clarity when those changes are announced is that many businesses and their owners are throwing in the towel now, and we cannot afford that in the UK when we have already seen record redundancies.”

Boris Johnson made the announcemnt on February 22 (PA)

On Monday, as the Prime Minister Boris Johnson set out his stall for easing lockdown measures in England, he was asked about business support in the House of Commons, but answered that Mr Sunak would deal with this in next Wednesday’s budget.

Mr Johnson told MPs there would be a four stage process for unlocking Covid restrictions in England.

The first stage begins on March 8, when schools and universities will be able to open their doors to face-to-face teaching, and people can meet with one person from another household outdoors.

From March 29, stay at home restrictions will be eased, but people will still be asked to stay local. The ‘rule of six’ will be in place for outdoor gatherings.

The second stage could begin on April 12, depending on how prevalent Covid infections are in the community, and the number of people occupying hospital beds with the disease.

At this point, gyms, libraries, hairdressers and other non-essential retail can open. Pubs and restaurants can open outdoor seating for meals and drinks.

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From May 17 at the earliest, the rule of six will be dropped, two households could meet indoors, some large gatherings could begin, and international travel may be possible.

Social distancing measures will be reviewed at that point too.

From June 21 at the earliest, all remaining restrictions could be lifted.

In his speech to the Commons on Monday, Mr Johnson said the plan would follow the ‘data not dates’ with the aim of being an irreversible end to restrictions.

He did concede that local or regional coronavirus restrictions may be needed in future, similar to the tier system introduced last autumn.

The chief medical officer, Professor Chris Whitty, has previously said there may be some need for restrictions again at the end of 2021.

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