This afternoon’s announcements from the chancellor, Rishi Sunak, demonstrated that the government was standing by its ‘we will do whatever it takes’ promise, delivered as part of last week’s budget.
It’s positive that further Coronavirus support announcements have followed the budget and knowing that there’s more to come is reassuring for business, but conspicuous by its absence was the detail – businesses need this detail ASAP.
The extent of the debt and length of repayment periods is going to cause concern for many businesses, both during and after the crisis, as they grapple with trying to keep their businesses afloat, including protecting jobs in the longer term.
Here’s what the chancellor said:
- £330bn of government-backed and guaranteed loans to support companies
- £10,000 cash grant for smaller businesses
- An extension of business rates holiday, for up to 12 months, for the hospitality and leisure sectors
- Support for un-insured businesses and reassurance that claims made by insured businesses will be processed swiftly
- Three-month mortgage payment holiday for homeowners
In a very uncertain time, and with the absence of much of the detail, many businesses will welcome the chancellor’s additional measures. But how in practice these will be implemented and how quickly the banks can process the loans will be a real test.
As the detail is released in the coming days, we will be keeping a keen eye on things to make sure that you’re up to speed with the ever-changing picture.