In these unprecedented times, the Government has promised to do whatever it takes to support our economy through this crisis. The Chancellor announced an unprecedented package of government-backed loans and guarantees to support businesses, individuals and our NHS.
Announcement on 12 March 2020
- A £12 billion plan to provide support for public services, individuals and businesses, whose finances are affected by COVID-19
- Extending Statutory Sick Pay (SSP) for those advised to self-isolate
- A Coronavirus Business Interruption Loan Scheme to support up to a further £1 billion lending to SMEs
- A £2.2 billion grant scheme for small businesses
- A dedicated helpline for those who need a deferral period on their tax liabilities
- Businesses in the retail, hospitality and leisure sectors, with a rateable value of less than £51,000, will pay no business rates this year
Announcement on 17 March 2020
- £330 billion of guarantees – equivalent to 15% of our GDP
- Extending the new Business Interruption Loan Scheme, so that it will now provide loans of up to £5 million, with no interest due for the first six months
- An additional cash grant of up to £25,000 to businesses in the retail, hospitality and leisure sectors
- Local authorities in England fully compensated for the costs of these measures
- Mortgage lenders will offer at least a three-month mortgage holiday to those affected
Announcement on 20 March 2020
Chancellor Rishi Sunak announces package to support workers as government confirms further measures to keep people safe.
- UK workers of any employer who is placed on the Coronavirus Job Retention Scheme can keep their job, with the government paying up to 80% of a worker’s wages, up to a total of £2,500 per worker each month. These will be backdated to 1st March and will be initially open for 3 months, to be extended if necessary.
- VAT payments due between now and the end of June will be deferred. No VAT registered business will have to make a VAT payment normally due with their VAT return to HMRC in that period. Income tax payments due in July 2020 under the Self Assessment system will be deferred to January 2021, benefitting up to 5.7m self-employed businesses.
- Additionally, the Coronavirus Business Interruption Loan Scheme, launched at Budget, will now be interest free for twelve months.
- The standard rate in Universal credit and Tax Credits will be increased by £20 a week for one year from April 6th, meaning claimants will be up to £1040 better off.
- Nearly £1bn of additional support for renters, through increases in the generosity of housing benefit and Universal Credit. From April, Local Housing Allowance rates will pay for at least 30% of market rents in each area.