UK government announce £350bn support for businesses affected by Coronavirus

The Chancellor Rishi Sunak last night unveiled the governments package of financial measures to stabilise the economy against the coronavirus impact.

Within the measures included £330bn in loans, £20bn in other aid, a business rates holiday, and grants for retailers and pubs. The government also said that support for the country’s airline industry will be considered.

The chancellor promised that if the package was not enough, he would go further: “This is a time to be bold. That means any business who needs access to cash to pay their rent, their salaries, suppliers or purchase stock will be able to access a government-backed loan or credit on attractive terms.”

He also said that he was extending the business rates holiday to all firms in the hospitality sector for 12 months and funding grants of between £10,000 and £25,000 for small businesses.

The huge £350bn total figure equates to 15% of the value of the UK economy.

Legislation will be brought forward to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.

Responding to the package of government announcements to help businesses affected, Dr Adam Marshall, British Chamber of Commerce Director General, said: “Businesses will welcome the scale of the Government’s latest response, as well as the specific support it is offering to some of the worst-affected parts of our economy. These measures could be a lifeline for many businesses across the UK who are now experiencing wholesale disruption as a result of the pandemic.

“The key to the success of these measures is whether they get cash to businesses on the front line, fast. Companies need practical details, at great speed, for these interventions to have the desired impact, and to reassure firms across the UK.

“Both the Prime Minister and the Chancellor were clear that the Government would do whatever it takes over the coming days to support businesses, their employees, and the economy. Further measures will be needed to help all firms and their employees meet this unprecedented challenge.”

If you would like any further information regarding the support available to your business, please do contact us by calling 01905 673 600 or visiting our website for the latest information.