Just six days after the budget, it became clear that the COVID-19 response unveiled would barely make any difference in the face of a potential economic catastrophe.
In response, the Government has unveiled a £330bn package of guarantees to support businesses through the “unprecedented” impact being caused by the virus.
In a joint press conference yesterday, Prime Minister Boris Johnson and Chancellor Rishi Sunak set out the latest economic response.
Johnson said: “We must act like any wartime government and do whatever it takes to protect our economy.
“We must support millions of businesses and tens of millions of families.”
Sunak set out some details of the economic response and promised more information and targeted action in the days ahead.
Sunak’s measures also included a package of direct support to businesses worth more than £20bn.
The £330bn loan guarantees are designed to provide access to loans “on attractive terms” for all businesses which need it. Larger businesses will be supported by a new lending facility agreed with the Bank of England.
Smaller businesses can access a big extension of the business interruption loan scheme which was first announced last week and the £3,000 cash grant for 700,000 small businesses announced in the Budget has been increased to £10,000.
There will be loans of up to £5m available, with no interest due for the first six months, and the scheme will be “up and running by next week”.
The Chancellor revealed significant investment to support businesses operating in the hospitality, leisure and retail sectors.
Cash grants of up to £25,000 to eligible businesses in the hospitality, leisure and retail sectors were also announced.
In addition, a business rates holiday previously announced for some businesses in those sectors has now been extended to all businesses, which will now pay no business rates for 12 months.
Jason Elliott Partner and Business Recovery expert commented:
“We understand that this is an extremely worrying and difficult time for all UK businesses.
“Cowgills is continuing to advise and assist our clients in navigating through these uncertain times, and we strongly recommend that all businesses seek the same assistance as we can really add value during these unprecedented times”.
“Please do not hesitate to contact myself or a member of our Recovery team without delay”
Jason Elliott – Partner & Head of Business Recovery, Jason.Elliott@cowgills.co.uk
Craig Johns – Partner, Craig.Johns@cowgills.co.uk
Nick Brierley Director, Nick.Brierley@cowgills.co.uk
Jordan Heys – Director, jordan.heys@cowgills.co.uk
Disclaimer
The information was correct at time of publishing but may now be out of date.
