Chancellor Rishi Sunak has unveiled his latest package of financial measures to protect businesses against the impact of Coronavirus

Chancellor Rishi Sunak told a press conference it was an “economic emergency. Never in peacetime have we faced an economic fight like this one” and he promised that if this package was not enough, he would go further.

Following the Chancellors Budget announcements last week Rishi Sunak has now announced the following financial measures to shore up the economy against the Coronavirus impact:

  • £330bn in state-backed loans for all businesses through the banking system with the help of the Bank of England. The interest rate of these loans is yet to be confirmed however the Chancellor did confirm the first 6 months would be interest free for small and medium sized businesses. The loans will be available from next week.
  • In last weeks budget it was confirmed that businesses in the retail, hospitality and leisure sectors, with a rateable value of less than £51,000, will pay no business rates this year. Today it was announced the Government will provide those businesses with an additional cash grant of up to £25,000 per business.
  • It was also announced in last weeks budget that the smallest businesses qualifying for Small Business Rates Relief would receive grants of up to £3,000. To support cash flow this has now been increased to £10,000.
  • All businesses in the retail, hospitality and leisure sectors will now pay no business rates this year, regardless of the property rateable value.
  • Pubs, clubs, theatres and other hospitality, leisure and retail venues that have an insurance policy that covers pandemics can make an insurance claim against their policy following the government’s action.
  • To help individuals the Government has also confirmed mortgage lenders will offer a payment holiday of at least 3 months to individuals in difficulty due to Coronavirus.

These are only the first steps and further financial measures will be announced in the coming days. Currently we do not have full details on how to access the loans or grant funds but we will provide updates as soon as the full details are available. We will continue to provide updates on any changes as they happen.

If you have any questions please contact us.