Coronavirus: Industry reacts to chancellor's £330bn rescue plan

This includes unlimited loans and guarantees to support firms and help them manage cashflows through this period. The chancellor will make available an initial £330 billion of guarantees – equivalent to 15% of UK GDP.

At last week’s budget, the Chancellor provided £30 billion of support to the economy to deal with the crisis, but yesterday Mr Sunak said he will take further action as the situation escalates.

Commenting on the aid package, Stephen Phipson, chief executive of Make UK said: "At a time of such unprecedented economic volatility industry will be re-assured the Chancellor recognises the severity of the situation and will do whatever it takes to protect the economy.

"Business understands that dealing with the impact of coronavirus was always going to be a massive task and, given the speed of events, there may be extra measures needed. Nothing should be left off the table to protect people and businesses."

Dame Carolyn Fairbairn, CBI director-general, commented: “The chancellor has taken substantial steps in unprecedented times. Today’s massive increase in Government-backed loans, higher cash grants and widened business rates relief for some sectors will help firms protect jobs and businesses. All now need to be delivered on the ground with speed and simplicity.

“The Chancellor is right to commit to doing whatever it takes.

“The new financial package provides valuable support to areas facing immediate stress, including hospitality and retail. As next steps, it will be vital to stay ahead of the economic impact, not waiting until firms are on the brink. Wider whole-economy measures like regulatory and tax relief in areas including VAT and National insurance will support a broader range of firms in real need.

“Urgent decisions are also needed on wages. An immediate mechanism is needed to top up wages for firms with no choice but to reduce hours for lower paid staff, so they can keep them employed and get through to the other side.

“It is clear this situation will not stand still, so nor can the economic support. The pace of change is too fast to play catch up.”

What do the new measures include?

Access to funding

To ensure that businesses have access to the funds they need, the government is providing:

• Support for liquidity amongst large firms, with a major new scheme being launched by the Bank of England to help them bridge Coronavirus disruption to their cash flows through loans.


• Increasing the amount businesses can borrow through the Coronavirus Business Interruption Loan Scheme from £1.2 million to £5 million, and ensuring businesses can access the first 6 months of that finance interest free, as Government will cover the first 6 months of interest payments


• Including new legal powers in the Covid Bill enabling us to offer whatever further financial support we think necessary to businesses

Business rates and grants

The chancellor is providing £20 billion of business rates support and grant funding to help the most-affected firms manage their cashflow through this period.

This includes increasing grants to small businesses eligible for Small Business Rate Relief from £3,000 to £10,000

Mr Sunak said: “We will do whatever it takes to protect our people and businesses from the effects of this global economic emergency brought on by the Coronavirus pandemic.

“The interventions I am setting out today will help support businesses of all sizes – so they can continue operating during these unprecedented times.”

The action announced today means that over £3.5 billion in additional funding will be provided to the devolved administrations for support to businesses in Scotland, Wales and Northern Ireland.

Treasury www.gov.uk/treasury