Economic Outlook and Furlough Scheme Changes

Part of the debate – in the House of Commons at 12:39 pm on 16th June 2020.

Alert me about debates like this

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury 12:39 pm, 16th June 2020

Actually, we have not said that. We remain interested in positive, detailed suggestions for improvement of the scheme. We have received some that do not appear workable. I will remind the Chamber of what the problem is. Let us not forget that the £50,000 trading profit margin implies average sales of £200,000, so these are not that small businesses compared with many sole proprietorships around the country. With these businesses, it is impossible to tell by any rule-based system the source of any dividends that they are paying, what may be the pay component of them and what may be simply earned from other sources but routed through the company. It has not been possible to devise a system that could operate on this million-person scale or more in the time available, while meeting our central need to act comprehensively and swiftly.