£350bn Emergency package announced to support businesses

Hello readers. Things are changing rapidly with the current coronavirus situation and my aim over the coming weeks is to keep you updated as regularly as I can with announcements as they occur.

Yesterday saw Mr Sunak announce a £350bn package of emergency measures in what has been called a ‘wartime situation’.

These measures include state loan guarantees worth £330bn along with a further £20bn of handout to help struggling businesses cope with the economic catastrophe that has been caused by the rapid spread of coronavirus here in the UK.

These measures have been welcomed by businesses, the majority of whom are facing an uncertain future.

These measures include the following:

  • Interest-free business interruption loans to be increased to £5m, up from the £1.2m announced at last week’s budget with no interest being payable for the first six months
  • A twelve-month business rates holiday for all shops, pubs, theatres, music venues, restaurants and any other hospitality or leisure business
  • A cash grant up to £25,000 for those businesses with a rateable value of less than £51,000
  • Banks have agreed to give struggling customers a mortgage holiday of up to three months
  • Cash grant of £10,000 to 700,000 of the smallest businesses
  • Local authorities to be fully compensated for the cost of measures, with at least £3.5bn going to devolved administrations in Scotland, Wales and Northern Ireland
  • Ministers to discuss a potential support package for airlines and airports in the face of travel bans

The chancellor has also reassured businesses that the government’s action in advising people to avoid pubs, clubs, theatres and restaurants was sufficient for them to make insurance claims.

In addition to this, the Treasury is also expected to delay by a year the introduction of controversial so-called IR35 rules that were due to come into effect in April.

Mr Sunak commented that further measures to help renters would be announced in the coming days. It is my hope that there will also be support available to landlords in the event that their tenants are unable to make rental payments due to factors related to the coronavirus.

Events are moving fast and it is clear that the government is working as hard as it can to prevent a total economic collapse due to the current situation.

If you have concerns about how these measures will affect you or your property business, I will be more than happy to help. Please email me on hasan@home-share.co.uk.

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