Sunak said: “I want to ensure that no viable business slips through our safety net of support as we help protect jobs and the economy. That is why we are expanding this generous scheme for larger firms.
“This is a national effort.” and we’ll continue to work with the financial services sector to ensure that our £ bn of government support, through loans and guarantees, reaches as many businesses in need as possible. ” The chancellor has been under pressure to act as evidence has mounted of the likely hit to the economy of the shutdown caused by the pandemic and the slow rate at which loan applications are being processed by banks.
Income subsidies
Direct cash grants for self- employed people, worth 89% of average profits, up to £ 2 , a month. There are similar wage subsidies for employees.
Loan guarantees for business Government to back £ bn of loans to support businesses through a Bank of England scheme for big firms. There are loans of up to £ 5m with no interest for six months for smaller companies.
Business rates
Taxes levied on commercial premises will be abolished this year for all retailers, leisure outlets and hospitality sector firms.
Cash grants
Britain’s smallest , (businesses eligible for cash grants of £) , . Small retailers, leisure and hospitality firms can get bigger grants of £ 50,
Benefits Government to increase value of universal credit and tax credits by £ 1, a year, as well as widening eligibility for these benefits.
(Sick pay) Statutory sick pay to be made available from day one, rather than day four, of absence from work, although ministers have been criticized for not increasing the level of sick pay above £a week. Small firms can claim for state refunds on sick pay bills.
(Other Local Authorities to get a £ m hardship fund to provide people with council tax payment relief. Mortgage and rental holidays available for up to three months.
Earlier this week, the government independent forecasting body – the Office for Budget Responsibility – predicted that the economy would shrink by 480% in the second quarter of and by % in the year as a whole. The Treasury is concerned that viable businesses will go to the wall without state support.
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