Government revealed further £300bn to support the economy

Today the Government revealed further £300bn to support the economy to keep it alive throughout the coronavirus outbreak. This extra financial help to the Coronavirus support for businesses and employees announced in the Budget 2020.

Any business who needs access to cash to pay their rent, salaries, suppliers or purchase stock will be able to access a government-backed loan or credit on attractive terms. The government support is guaranteed.

As part of the £300bn financial support the chancellor said he was extending the business rates holiday to all firms in the hospitality sector and funding grants of between £10,000 and £25,000 for small businesses.

The chancellor announced that banks had agreed to give struggling customers a mortgage holiday of up to three months. It is important to remember that the payments would have to be make at a later date and that when customers resume payments these will be slightly higher as a result of the missed interest payments being added to the loan. However, the mortgage holiday is a good idea.

He also said he realised that many companies did not have sufficient insurance to cover the impact of the coronavirus. They would be allowed access to cash grants of up to £25,000 per company, as well as a business rates holiday for companies of any size. 

The Treasury is also expected to delay by a year the introduction of controversial so-called IR35 rules affecting thousands of companies and freelance contractors.

The chancellor also said the he is in talks with trade unions and businesses to ensure peoples financial security. In the coming days the government will come with new forms of employment support to help protect people’s jobs and their incomes. Mr Sunak also said ministers were set to discuss a potential support package for airlines and airports in the coming days.

Stay tuned for more information on government’s support due to coronavirus.