- We know people are deeply worried about the Coronavirus – the impact it will have on their jobs, their incomes and their ability to provide for their families. We said we would support the British people – and we meant it.
- We have announced an unprecedented package of measures – one of the most generous in the world – to protect businesses and jobs. We are stepping in to help pay people’s wages through the Coronavirus Job Retention Scheme; standing behind businesses small and large by providing a £330 billion package of loans and guarantees; and helping all businesses in the retail, hospitality and leisure sectors through a £22 billion package, meaning that none of these companies will have to pay business rates.
- We are doing everything it takes to help our economy through this difficult time – and will ensure people get the support they need to do the right thing, to stay at home, protect our NHS, save lives.
Protecting people and their jobs:
- Stepping in and helping pay people’s wages through the Coronavirus Job Retention Scheme, which is one of the most generous of any in the world – paying grants to support as many jobs as necessary. Any employer in the country – large, small, charitable or for profit – who promises to retain their staff, can apply for a grant to cover most of the cost of paying people’s wages. Government grants will cover 80 per cent of the salary of retained workers up to a total of £2,500 a month – above the median income. We will place no limit on these grants. The cost of wages will be backdated to 1 March. We have also updated the guidance so that employees with caring responsibilities can be furloughed. So far, more than 500,000 claims have been made to the value of £4.5 billion.
- Launching the Self-Employed Income Support Scheme, to make sure people who work for themselves are getting the financial support they need. The Government will pay self-employed people across the whole UK who have been adversely affected by coronavirus a taxable grant worth 80 per cent of their average monthly profits over the last three years, up to £2,500 a month, for three months – but we will extend it for longer if necessary. 95 per cent of people who are majority self-employed will benefit from the scheme.
Standing behind businesses:
- Standing behind businesses small and large – providing a £330 billion package of loans and guarantees – that’s worth 15 per cent of our GDP. And if demand is greater than the initial £330 billion we are making available, we will go further and provide as much capacity as required. That means any good business in financial difficulty who needs access to cash to pay their rent, the salaries of their employees, pay suppliers, or purchase stock, will be able to access a government-backed loan, on attractive terms.
- Standing behind businesses through the Coronavirus Business Interruption Loan Scheme – providing loans of up to £5 million, interest free for 12 months, to small businesses. All small businesses affected by Coronavirus, and not just those unable to secure regular commercial financing, are eligible. The Government is also banning lenders from requesting personal guarantees for loans under £250,000. So far, 16,600 loans have been made, worth over £2.8 billion.
- Creating a new Coronavirus Large Business Interruption Loan Scheme to provide loans of up to £50 million – meaning larger businesses can benefit. Firms with a turnover of more than £45 million will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million. This will provide a government guarantee of 80 per cent so that banks can make loans to larger companies. This will give banks the confidence to lend to more businesses which are impacted by coronavirus but which they would not usually lend to. Loans backed by a guarantee under the scheme will be offered at commercial rates of interest
- Supporting liquidity amongst large companies via the Covid Corporate Finance Facility, a major scheme for investment-grade firms launched by the Bank of England. So far, this has provided £10.7 billion for larger firms.
- Helping all businesses in the retail, hospitality and leisure sectors through a £22 billion package – meaning that none of these companies will have to pay business rates. All businesses in this sector are exempt from business rates for 12 months – that’s every single shop, pub, theatre, music venue, restaurant, and any other business in the retail, hospitality or leisure sectors. In addition, we will provide small businesses in these sectors with an additional grant scheme of up to £25,000. Any business with a rateable value of less than £51,000 can now get access to a government grant. Put together, these measures will provide high street businesses with a £22 billion boost. So far, half a million firms have benefitted from £6 billion of business grants.
- Providing grants to the smallest businesses to help them during the coronavirus outbreak. The Small Business Grants fund provides £10,000 grants, which do not need to be repaid, to businesses which are eligible for the Small Business Rate Relief Scheme or the Rural Rate Relief Scheme.
- Deferring the next three months of VAT, a direct injection of over £30 billion of cash to employers, equivalent to 1.5 per cent of GDP. That means no business will pay any VAT from now until the end of June, and they will have until the end of the financial year to repay those bills.
- Supporting small and medium-sized businesses to cope with the extra costs of paying Statutory Sick Pay (SSP) by refunding eligible SSP costs. The refund will be limited to two weeks per employee who has claimed SSP as a result of Covid-19, and employers with fewer than 250 employees will be eligible.
- Announcing a £1.25 billion package of support for innovative firms impacted by coronavirus, delivering important help that will protect some of the most dynamic sectors of our economy. The £1.25 billion support package will ensure businesses in some of the most dynamic sectors are protected. This includes a £500 million loan scheme for high-growth firms, called the Future Fund, and £750 million of targeted support for small and medium sized businesses focusing on research and development.
- Supporting charities during this difficult time, with an unprecedented £750 million package of extra funding. This will benefit thousands of charities, ensuring they can meet increased demand as a result of the virus as well as continuing their day to day activities supporting those in need.
Helping people with the cost of living:
- Introducing a three month mortgage holiday for those in difficulty due to coronavirus – so that people will not have to pay a penny towards their mortgage while they get back on their feet. So far, 1.2 million payment holidays have been agreed.
- Providing nearly £1 billion of support for renters, by increasing the generosity of housing benefit and Universal Credit, so that the Local Housing Allowance will cover at least 30 per cent of market rents in local areas.
- Strengthening the safety net for those who need it – increasing Universal Credit and Working Tax Credit by £1,000 a year – a cash injection of nearly £7 billion in the welfare system. We are increasing the Universal Credit standard allowance, for the next 12 months, by over £1,000 a year. We will also increase Working Tax Credit by the same amount for the next 12 months. Together these measures will benefit over 4 million of our most vulnerable households. We have also suspended the minimum income floor for twelve months – meaning self-employed people can now access, in full, Universal Credit at a rate that is equivalent to Statutory Sick Pay for employees.