Tory MPs attack Treasury’s coronavirus response and call for ‘radical’ measures
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Tory MPs have told the government to start paying British workers’ wages directly and to ramp up benefits payments “today”.
Conservatives from across the party said the chancellor’s response to the economic fallout from coronavirus had not gone far enough and would not prevent mass unemployment.
Former business secretary Greg Clark said in the House of Commons today that businesses “see no choice but to lay off workers now” despite the £330bn of loans chancellor Rishi Sunak has promised them.
“The loan scheme that the chancellor announced on Tuesday is not enough,” he said. “These businesses have no idea when they would be able to pay back the debts.”
“It provides no reason to keep staff employed, in fact the reverse because the smaller the wage bill the less that would have to be borrowed.”
Clark said the government should use the tax system to start paying workers’ wages directly “if and only if [firms] continue to employ their staff”.
“The chancellor said that he would do whatever it takes and do so urgently. He now needs to make good on that and do so urgently.”
Treasury minister John Glen said the government was working “flat out, 24/7 to look at all the options”. He said the chancellor was meeting with unions and business groups to work out a plan for workers.
But former Tory leader Ian Duncan Smith said things must be done “today”.
The architect of the Universal Credit benefits system said the government should ramp up the amount on offer through the scheme.
“You could change the benefits rate allowing a greater expanse of money to flow to them this could be done today.” He also said the waiting time for benefits should be reduced.
He said these changes “can be done today, they can be delivered within days”.
Veteran Tory MP Bernard Jenkin said Sunak’s measures were “simply not going to be enough”. Hardline Conservatives “are lining up for more radical measures,” he said.