Coronavirus and Bailouts
These are incredibly difficult times for the country and while it is paramount to protect jobs and the economy, questions are also being asked about the way the country does business. I have raised the points you mention with colleagues in the Treasury, including about supporting a green recovery.
As we recover from Covid-19, the Government needs to deliver an economy which is stronger, greener, more sustainable and more resilient. No government could expect to have all the answers itself. I was therefore pleased that, in June, the Secretary of State for Business, Energy and Industrial Strategy launched five new ‘recovery roundtables’ bringing together businesses, business representative groups and leading academics, to unleash Britain’s growth potential and help the economy recover from the pandemic. The group will focus on: the future of industry; a green recovery; backing new businesses; increasing opportunity; and winning more high value investment in the UK.
I know questions have been raised about support for certain sectors. In the case of airlines, for example, firms can draw upon a range of financial support during this challenging time, including billions of pounds worth of loans and guarantees, tax deferrals and the furlough scheme for workers. The ministerial-led international aviation taskforce is looking at the best ways to support the industry, recognising the unique challenges they are facing. Rightly, any potential intervention would need to represent value for money for taxpayers.
In exceptional circumstances, where a viable company has exhausted all options and its failure would disproportionately harm the economy, the Government may consider support on a ‘last resort’ basis. As constituents would expect, sensible contingency planning has been put in place and any such support would be on terms that protect the taxpayer.