Loans Of Up To £330 Billion To Save UK Businesses

18th March 2020
Paul Brooks

The government has unveiled a package of financial measures to shore up the economy against the coronavirus impact.

It includes £330bn in loans, £20bn in other aid, a business rates holiday, and grants for retailers and pubs. Help for airlines is also being considered.

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.

From the hospitality industry to the airline sector, companies have warned that their long term survival is under threat.

Mr Sunak said: “This is not a time for ideology and orthodoxy, this is a time to be bold, a time for courage. I want to reassure every British citizen this government will give you all the tools you need to get through this.

“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 £330bn [for loans] 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,” he said.

Prime Minister Boris Johnson said during the same media briefing that “we must do whatever it takes to support the economy”. He added: “This a time to be bold, to have courage. We will support jobs, we will support incomes, we will support businesses… We will do whatever it takes.”

Mr Sunak said: “Some sectors are facing particularly acute challenges. In the coming days, my colleague the Secretary of State for Transport and I will discuss a potential support package specifically for airlines and airports.”

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. And Mr Sunak said that for those in financial difficulty due to coronavirus, mortgage lenders will offer a three-month mortgage holiday.

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