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Pre-budget statement offers little hope for people in Erith and Thamesmead

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:

  1. Projects must involve local firms, upskill the local workforce and lead to material improvement in the quality and availability of local employment
  2. The Chancellor must rebuild economic resilience right across the entire country and protect those institutions, like local authorities, that can help deliver that resilience
  3. Every single project must be consistent with the drive to net-zero so we can build the green jobs of the future
  4. 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.

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Events industry needs Government support to survive

Last week I requested to speak in the House of Commons chamber about the urgent need for Government support for the events industry. Unfortunately, I was not called to speak directly about the pressing concerns many constituents have contacted me to raise over the past two months. However, I am aware of your concerns and difficulties and I will be raising these with the Government at every possible occasion. 

A huge amount of people in Erith and Thamesmead have been impacted by the Government’s failure to offer economic assistance to the events industry during COVID-19.

From the very beginning of lockdown I have received daily emails about the events industry, theatres, the hospitality sector and the creative sector. People who have worked in these industries, contributing to the UK’s economy for years, have been completely abandoned by this Government.

Despite efforts made by myself and colleagues to raise these issues with the Government ask that more support be given, I have unfortunately had to respond to constituents informing them that there is no support package available and the Government doesn’t seem to want to support them.

The Government needs to provide a sector specific support package for the cultural sector; theatres, music, festivals, other live performance venues, but also tourism and hospitality sectors which are inextricably linked.

The events sector is worth £42.3 billion to the UK economy, there are over 25,000 businesses and it sustains 570,000 full time jobs.

There is a reason 35% of the UK visitor economy is accounted for by events. That is because the events industry pulls together the best talent in a whole range of areas. Behind every festival is a team of marketers, performers, hospitality staff, transport operators, event organisers and UK music venues.

Almost every UK music festival has been cancelled this summer, music venues across the country have been unable to open for three months and are unsure of when they can begin to open again, hundreds of thousands of hospitality jobs have already been lost and the industry has warned of thousands more.

What steps is the government taking to support venues which will be unable to open for the foreseeable future, such as music venues and theatres, and therefore unable to subsidise the furlough scheme from August?

If the Government doesn’t act to save businesses and jobs before they are lost we are going to see a huge hole in the economy where our world renowned events industry used to thrive. The Government must act urgently to support people in these industries to avoid a loss of jobs, talent and culture across the UK.