PARLIAMENTARY WRITTEN QUESTION
Horticulture: Coronavirus (20 May 2020)

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment his Department has made of the potential merits of introducing a scheme similar to the ornamental horticulture grant aid scheme provided for growers in the Netherlands by the Dutch Government.

Asked by:
Sir John Hayes (Conservative)

Coronavirus represents a very significant challenge, affecting daily life and every part of the economy, including the ornamental horticulture sector. A vibrant and successful ornamental horticulture sector brings significant benefits. The Government continues to work closely with representatives from the horticulture supply chain including the Horticultural Trades Association to understand the short-term and long-term impacts on the UK sector.

Defra has already been in close discussion with banks to ensure the ornamental horticulture sector has access to financial support. This will ease cashflow problems during this period, including through the Government-backed Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan scheme, which was announced on 27 April and is the latest step in a package of support measures announced by the Chancellor. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support small businesses. These loans will be from £2,000 up to £50,000, capped at 25% of firms' turnover, and the Government will cover the first 12 months of interest payments and fees charged to the business by the lender. Almost all UK businesses will be eligible to apply for a loan under the scheme.

On 13 May, the Government announced that all garden centres in England which are able to adhere to social distancing measures were legally able to reopen. This measure has been widely welcomed by growers, garden centre owners, and consumers.

While the Government has made a wide-ranging package of measures available to ornamental horticulture businesses to support them through this difficult period, we continue to keep the situation under review. Legal powers were included in the Coronavirus Act 2020 enabling us to offer further financial support if we believe it is necessary.

Answered by:
Victoria Prentis (Conservative)
8 June 2020