The Chancellor has pledged £330 billion for businesses needing ‘access to cash’ during the coronavirus outbreak.
Announcing the measures he said “this is not a time for ideology or orthodoxy, this is a time to be bold”, adding that he will do whatever it takes to protect jobs and incomes.
Any business that needs it will be able to access a loan on attractive terms. To support liquidity amongst larger firms, he has agreed a facility with the the Bank of England.
For smaller firms he will extend the business interruption loan scheme, which will offer loans of up to £5 million. He says both schemes will be up and running by next week.
There will be also be special help for airlines.
Sunak says he announced last week that some firms would have to pay no business rates this year. Those business will now get grants of up to £25,000, he said. He said the business rates holiday will apply to all firms in the hospitality or retail sector.
The Chancellor is also making grants worth £10,000 available to the smallest firms. Sunak says mortgage lenders will give a three-month mortgage holiday to people who need help.
Sunak will be working on more measures to help people in employment.
The Chancellor said these are only the first steps and he is willing to do whatever it takes.
Here are the key measures the Chancellor Rishi Sunak has outlined to protect the economy amid the coronavirus crisis.
Here’s a look at the key measures he announced to help the economy.
– £330 billion Government-backed loans
Mr Sunak unveiled an “unprecedented package” of Government-backed loans worth £330 billion – equivalent to 15% of GDP – to help businesses.
He said: “That means any business who needs access to cash to pay their rent, their salaries, suppliers or purchase stock will be able to access a Government-backed loan or credit on attractive terms.
“And if demand is greater than the initial £330 billion I’m making available today, I will go further and provide as much capacity as required. I said whatever it takes, and I meant it.”
– Mortgage holidays
The Chancellor said homeowners would get a “three-month mortgage holiday” if they are suffering difficulties due to the outbreak.
He told the press conference: “For those in difficulty due to coronavirus, mortgage lenders will now offer a three-month mortgage holiday so that people will not have to pay a penny towards their mortgage cost while they get back on their feet.”
– Cash grants
Mr Sunak said he was providing cash grants of up to £25,000 to smaller businesses in the retail, hospitality and leisure sectors with a rateable value less than £51,000 to help bridge through the period.
He also said he would increase the £3,000 cash grants to 700,000 of the country’s smallest businesses – announced in the Budget – to £10,000.
– Business rates holiday
The Chancellor said he was extending a business rates holiday for those smaller businesses to all businesses in those sectors irrespective of their rateable value.
It means shops, pubs, theatres, music venues and restaurants will pay no business rates for 12 months.
– People’s financial security
Mr Sunak said he would soon announce further measures to “support people’s financial security”.
“In particular, I will work with trade unions and business groups to urgently develop new forms of employment support to help protect people’s jobs and their incomes through this period,” he said.