After his announcement in the budget last week, where Mr Sunak declared that he would do whatever it takes to support the economy through the disruption caused by coronavirus (COVID-19). On Tuesday he announced further measures to help support businesses affected by the global coronavirus pandemic. With an announcement of up to £350 billion of aid to help those affected by the pandemic.
The majority of this aid package comes from the £330 billion of loan guarantees announced to help businesses with their liabilities during the crisis. These government backed loan will be on attractive terms and there are currently plans for an initial 6 month period of no interest. An initial loan ceiling of £1.2 million was announced however this is set to rise to £5 million.
There was confirmation that the government advice to avoid pubs, clubs and theatres etc. will be sufficient for businesses to claim for on their insurance so long as they have appropriate business interruption cover in place.
Further measures were also announced with respect to business rates for those in the retail, leisure and hospitality sectors with all businesses who pay these rates having a year long period in which no business rates will be due. Smaller companies will also be eligible for a cash grant of up to £25,000.
Further measures are also to be introduced to support airlines however there are no further details as of yet.
As and when further measures are announced by the chancellor we will be providing updates, as such we advise to check our website regularly.
