£30BN BUDGET TO BEAT VIRUS

■ ‘Dr Feelgood’ chancellor’s rescue remedy for business ■ Sick pay for workers and a cut in National Insurance for 30million ■ Scotland handed £640m in pledge to ‘build up our Union’

THE Chancellor yesterday unveiled a £30billion res- cue package to protect workers and businesses from coronavirus chaos.

rishi Sunak delivered his first Budget amid warnings from economic forecasters that COViD-19 could tip the UK into recession.

The Chancellor promised policies to help businesses during the ‘temporary disruption’ that he admitted is now ‘likely’, and which could see one in five workers signed off sick.

Among the key measures was a promise to meet the full cost of providing statutory sick pay for a maximum of 14 days to employees of companies with up to 250 members of staff.

But Scottish firms face the threat of missing out on a key promise to scrap business rates for smaller retailers and leisure companies to protect the high street – as SNP ministers have failed to commit to doing the same in Scotland.

The Scottish Government will be handed an extra £640million in the coming year as a result of yesterday’s Budget, in addition to £1.3billion from previous spending pledges.

Business leaders have welcomed the emergency action – and urged the Scottish Government to ensure that firms north of the Border do not miss out on key elements.

COViD-19 dominated the Budget, only a day after health minister Nadine Dorries admitted she is in isolation after being diagnosed with the illness.

Mr Sunak said: ‘What everyone needs to know is that we are doing everything we can to keep this country – and our people – healthy and financially secure. We will get through this together. The

British people may be worried but they are not daunted.’

Mr Sunak turned the page on a decade of austerity, with key measures including:

■ A National Insurance cut for around 30million workers;

■ Scrapping plans to increase whisky duty and freezing tax on beer, cider and wine;

■ Continuing the freeze on fuel duty;

■ A £27billion roads plan as part of an ‘infrastructure revolution’ south of the Border.

The Office for Budget Responsibility, which provides economic forecasts to the Treasury, yesterday said a recession this year is ‘quite possible if the spread of coronavirus causes widespread economic disruption’.

Mr Sunak said the Government’s pledge on statutory sick pay will potentially mean providing more than £2billion for around two million businesses across the UK.

A coronavirus ‘business interruption’ loan scheme will offer guarantees to support banks lending £1billion to small businesses.

Mr Sunak said his measures represent a £7billion package to support businesses, the self-employed and vulnerable people. He will also set aside a £5billion NHS ‘emergency response fund’ and provide £18billion to help strengthen the economy.

He added: ‘That means that I am announcing today, in total, a £30billion fiscal stimulus to support British people, British jobs and British businesses through this moment.’

Andrew McRae, Scotland policy chairman for the Federation of Small Businesses, said: ‘By picking up the tab for the first 14 days of statutory sick pay, the UK Government is providing essential support for small employers.

‘In addition, new small business funding schemes, a cut to interest rates and new flexibility from HMRC should give many local enterprises muchneeded room to manoeuvre.’

But a £1billion business rates pledge to protect high streets will not apply in Scotland because the tax is devolved.

Mr Sunak said he would provide a ‘holiday’ for all firms in the retail, leisure and hospitality industries with a rateable value of less than £51,000.

Scottish firms could also miss out on a £3,000 cash grant to those eligible for small business rates relief, while SNP ministers will decide whether to follow his decision to create a £500million ‘hardship fund’ to be distributed by councils.

Mr Sunak also said he would provide whatever funding is necessary to help the NHS.

Industry leaders yesterday urged SNP ministers to act on a similar rescue package.

Dr Liz Cameron, of the Scottish Chambers of Commerce, said rates bills should be suspended ‘for retail, leisure and hospitality firms in Scotland as the UK Government has announced’.

She added: ‘Unless mitiScotland, gated, the effect of a coronavirus pandemic – coupled with ongoing uncertainty in other areas such as Brexit – risk heaping long-term damage on to the Scottish economy.’

David Lonsdale, of the Scottish Retail Consortium, said: ‘Many of the measures to support businesses will only affect English businesses.

‘We hope to see a swift announcement from the Scottish Government on how they will allocate a portion of the very significant Barnett consequential revenues to support businesses facing a very difficult few months.’

Tracy Black, director of CBI said: ‘The Scottish Government should take note of the Chancellor’s commitment on business rate reliefs to mitigate the impact of COVID-19, and consider how Scottish businesses can be supported in the near-term.’

SNP Finance Secretary Kate Forbes said she was pleased to see the Chancellor’s action on coronavirus.

But she added: ‘We require urgent clarification on what funding Scotland will receive from the announcements made by the UK Government, at a time when the prospects for the economy and public finances remain very uncertain as the short-term impacts of COVID-19 unfold.

‘I will ensure that businesses in Scotland are supported and will work with the business community to identify the most effective measures available to us when we have more clarity on the funding available.’