"Last week the Chancellor, Rishi Sunak MP, announced his Winter Economy Plan. Designed to carry businesses and individuals through the winter after what has been a disastrous year for so many. The plan sets to replace the furlough scheme with a wage subsidy for those in work starting from November and running for six months. It extends the 5% VAT level for the tourism and hospitality sector to end of March 2021 and finally, it extends the government-backed loans from six years to ten years, effectively halving repayments.
The Chancellor has been in lockstep with the whole country as he rolled out his Covid-19 support measures. But he, like many of us, understands that for these measures to be truly effective businesses must be allowed continue to operate. The economy cannot be shut down and wages paid indefinitely. After all, this is not the government’s money but the taxpayers.
Such an example can be found in our hospitality and tourism sector. The government’s proposals have been generous, to say the least, and I am pleased that the Chancellor has responded to my two campaigns calling for VAT to be levelled at 5%. No prizes for guessing what my third campaign will be! Yet these measures only have a true, significant impact if the sector is allowed to continue to operate. An otherwise successful business that has been badly impacted by Covid-19 will only be delaying the inevitable.
This week MPs will be debating whether to give parliament greater say in future prohibitive measures. As a representative of South Devon, I am looking forward to adding my thoughts and views on the subject. I was happy for the Government to pass the Coronavirus Act on 25th March this year, but it is readily apparent that a one size fits all approach is no longer suitable, not least because of the significant difference in R-value here in the South West.
I believe that the ‘rule of six’ and the 10 pm restriction on pubs and bars are likely to severely impact the hospitality sector if allowed to continue. We need to ensure that on a regional basis our businesses and people are allowed to go about their daily lives with as great ease as possible. Of course, should the R level change then we must respond accordingly, but if we are to make it through this pandemic without mass unemployment then we are going to have to learn to live with the virus.
Part of living with a virus means also using the tools that are being provided. At the time of writing over ten million people have downloaded the NHS Test and Trace app. This new piece of technology will allow the government to respond in short order to local outbreaks and contain outbreak clusters. Added to which maintaining the Hands. Face. Space mantra will ensure the virus cannot spread with great ease.
There are sadly no two ways about it, we are in for a tough for few months but a vaccine will be created and in the meantime, we must embody the spirit of our forebearers, live with the virus and try to resume normal activity."