Rishi Sunak, Chancellor of the Exchequer, detailed his plans to protect jobs and boost the economy today but despite big spending pledges the announcement offers little support for people in Erith and Thamesmead.
Concerned business owners and employees in the creative and beauty industries were expecting to hear details about when they can expect to see business get back to normal today, but the Chancellor’s package managed to completely ignore these important issues. Instead of offering flexible support packages to businesses still closed or operating a reduced service, the Chancellor has offered bonus’ to those that manage to survive the crisis.
Rishi Sunak MP clearly hasn’t had to read the hundreds of emails a day that myself and many other MPs are receiving from business owners on the brink of collapse and constituents struggling to feed their families.
One constituent has been in contact with me with concerns about their beauty business, they said:
“My profession, my reputation and my business is at stake. The action of reopening my beauty business is not from a profit perspective, it’s survival.”
Knowing that if they survive and manage to retain staff for a further 6 months they can claim £1000 from the Government, will offer little solace to many small business owners across Erith and Thamesmead at this point.
Plans announced for the hospitality and tourism sector today, one of the few industries that were acknowledged, reveal a Government that does not understand the extent of the health and economic crisis we are in. The Chancellor’s 50% off meal deal does little to support a hospitality industry that were looking forward to a robust new deal.
The Government’s failed contact tracing app and confusing messaging throughout the crisis has done little to calm public fear regarding the spread of the virus, with a second wave still a looming possibility. The hospitality and tourism industry is unable to re-open at the capacity levels needed to sustain struggling businesses without a thorough test and trace system – none of the Chancellor’s measures address this.
Millions of job losses are predicted for the coming months and whilst plans to create new jobs are welcomed, many will still find themselves on Universal Credit for the first time. Over 12,000 jobs have been furloughed in Erith and Thamesmead and unemployment rose by an unprecedented 2% between March and April.
The Department for Work and Pensions (DWP) has been promised a £1 billion investment to support schemes and services which help people back into work. Again, this will offer little comfort to the thousands of people applying for Universal Credit for the first time who will be expected to survive on a reduced household income. The return of benefit sanctions, whilst vulnerable people remain exposed to the virus and businesses remain closed, demonstrates the lack of understanding and compassion offered by the Government to those struggling financially from the crisis.
If people in Erith and Thamesmead are to feel the benefits of government investment and feel supported through the upcoming period of economic instability, support needs to be targeted locally, with a net-zero target in mind and with long lasting benefits. The Labour Party are calling for four tests to be met in regards to economic support:
- Projects must involve local firms, upskill the local workforce and lead to material improvement in the quality and availability of local employment
- The Chancellor must rebuild economic resilience right across the entire country and protect those institutions, like local authorities, that can help deliver that resilience
- Every single project must be consistent with the drive to net-zero so we can build the green jobs of the future
- Any benefits of investment now must be cancelled out by poor decisions later. The Conservatives promised at the last election there would be no rises in income tax, national insurance or VAT. We need the economy to bounce back from the crisis, so there’s money in the coffers to protect public finances.
The people of Erith and Thamesmead deserve a better economic deal for jobs from the Government, to survive the impact of the COVID-19 pandemic.