Struggling firm in Chancellor's own Yorkshire constituency shows problems with coronavirus support package, Labour warns

During Prime Minister’s Questions today, Sir Keir pressed Boris Johnson on why the Government has deemed many jobs in hospitality to be not viable.

When Chancellor Rishi Sunak set out new economic measures last week he said help would only be offered to “viable” businesses who could offer staff a third of their normal hours.

But many industries, especially in hospitality where they have been restricted or not allowed to open at all, this is impossible.

Speaking in the Commons, Sir Keir said: “The reality is that the Chancellor has made a political choice to reduce economic support, just when the new health restrictions are coming in.

“If the Prime Minister doesn't accept that from me, maybe he'll listen to the following example from the Chancellor's own constituency.”

He quoted the owner of a wedding business in Mr Sunak’s North Yorkshire constituency of Richmond, who said: “The Chancellor's latest plan does nothing to help us. We can't employ people to work in events that the government are not allowing to take place.

“Our events team are looking in the face of redundancy, because we simply can't afford to pay wages when events are in lockdown.

“These jobs here are viable if only the Government would allow us to return to work.”

The businessman described his events team as “talented and fantastic”, and he added: “It's an insult to suggest their jobs are not worth saving.”

But Mr Johnson defended the Government’s economic support and said he “feels” for the business owner quoted before adding: “The best way forward is for him and all other businesses in the country is if we all pull together now, get the virus down, keep the economy moving.”

Tory MP for Colne Valley Jason McCartney also pushed for more support for the events industry.

He said: “The events sector, which includes weddings, festivals, conferences and music events, supports nearly a million jobs and is worth over £30bn to the UK economy. It's been devastated by Covid, revenue is down 90 per cent since last year, will the Prime Minister look at financial support focusing on grants not just loans, especially for freelancers, including musicians and performers? And will the Government support proactive Covid-secure testing for events to boost confidence and start to allow the events industry to support itself?”

The Prime Minister said Mr McCartney was “absolutely right to champion the sector in the way that he does”.

And he added: “The £1.57bn cultural recovery fund is clearly intended to support those organisations and the freelancers that he mentioned. I think the vision that he lays out for people going to events where people can be tested before they go is absolutely right, and I hope that when that day comes the public will show their support for this vital sector by visiting theatres as they reopen.”