We’re giving firms the tools to fight this crisis
The UK is well prepared to tackle coronavirus but, of course, businesses clearly face challenges in multiple areas.
These vary from giving advice to staff on work-related issues arising from the virus, to putting in place plans to minimise impacts on their operations. And I know that many are concerned about the longerterm effects on investment, cash flow and the future of their businesses.
We want to be very clear – this Government is ready to support businesses of all sizes and the millions of people they employ across the country during this time.
Yesterday, the Chancellor announced new measures to do just that. These include £2.2bn in grants for 700,000 of our smallest businesses. There will be a refund for businesses with fewer than 250 employees which pay statutory sick pay to workers absent due to self-isolating for up to two weeks.
The Government-owned British Business
Bank, which is supporting more than £7.3bn of finance to 93,000 small- and medium-size enterprises, will help smaller businesses access finance through the coronavirus business interruption loan scheme.
This will provide up to £1bn to protect and support small businesses. We are also providing vital tax relief by temporarily increasing the business rates retail discount to 100pc and expanding it to include leisure and hospitality businesses. For those who are worried about paying tax on time due to coronavirus, we have set up a dedicated helpline through hMrC to support businesses explore the options.
The Bank of england’s decisions mean banks are better able to provide additional credit to meet firms’ needs. We want banks to be part of the solution.
This week it was encouraging to see Natwest and Lloyds launch funds of £5bn and £2bn respectively for small and medium firms directly affected by the virus.
In addition, Natwest has pledged to defer mortgage and loan repayments by three months. This is an important demonstration of support and I urge other lenders to consider what more they can do to help customers through this challenging time.
As Business Secretary, I regularly speak to firms and, in light of coronavirus, I have ramped up that engagement. Last night I spoke with business groups and trade associations to discuss the measures in the Budget and reassure them of the Government’s commitment to support them.
For individual businesses, the first port of call for advice and guidance should still be gov.uk. And we are scaling up our business support helpline so entrepreneurs can pick up the phone for advice and support from my department.
Supporting companies through this period is a top priority, as demonstrated by the Chancellor’s Budget yesterday, and the efforts of the whole Government.
We will keep our response under review as the situation develops. And we will make sure we do everything we can to support business through this turbulent time and keep the economy moving.