‘Whatever it takes’: Rescue package for businesses on brink
Sturgeon warned widespread school closures were “highly possible” in coming days as she prepared to meet education secretary John Swinney last night.
She said the Scottish Government’s position was being reviewed “several times a day”.
“I think it’s highly possible that we will see a more blanket approach to school closures in the coming days,” she told BBC’S Reporting Scotland.
Ms Sturgeon added: “We know that absences are increasing. Clearly there will be a pressure on teacher attendance if teachers are self isolating as well.”
In a sign that plans are being drawn up to take that step, the Prime Minister said that parents of children on free school meals would “get the compensation they need” to ensure they can afford to feed their families.
Mr Sunak said the UK was facing a “public health emergency and an economic emergency” and needed a “collective national effort” to save the economy. “I promise to do whatever it takes,” the Chancellor pledged, saying the government’s intervention would be “on a scale unimaginable just a few weeks ago”.
Unveiling a huge rescue package that represents 15 per cent of the UK’S GDP, Mr Sunak said it was “not a time for ideology”.
Every hospitality, tourism and leisure business will have their business rates cancelled for the next 12 months, the Chancellor announced, with local authorities fully compensated.
Amid concern the government’s decision not to force the closure of pubs and restaurants would prevent owners making insurance claims, Mr Sunak said those with coverage for epidemics would get a payout.
Hospitality businesses will be able to claim grants of up to £25,000 to help cover fixed costs, including rents, and 700,000 small businesses across the economy will be eligible for grants worth £10,000 – a package worth £20 billion in total. Devolved administrations will get £3.5bn to provide direct support to businesses in the nations of the UK, with the money released at the same time as payments in England.
The government will also guarantee business interruption loans up to an initial £330bn, with Mr Sunak saying he would make available “as much capacity as required”.
“I said whatever it takes, and I mean it,” he said.
Small businesses will be able to borrow as much as £5m, with the government paying the interest for the first six months.
Mr Sunak promised a specific package of measures for airlines and airports left reeling bythesuddencollapseininternational travel, with airport operators warning they may be forced to shut within days.
Mortgage lenders have agreed to offer a three-month payment holiday to anyone struggling to pay as a result of coronavirus, the Chancellor said.
Shadow Chancellor John Mcdonnell criticised the lack of clarity for renters, condemned Virgin Atlantic founder Sir Richard Branson for asking for an airline bailout while asking staff to take unpaid leave, and said the government should not pay private health operators for using their hospital beds.
“Today in some of our constituencies people were being laid off, they were losing their jobs and losing their incomes and their livelihoods are being threatened,” Mr Mcdonnell said.
“People are worried and I’m just disappointed that today’s package of measures didn’t really appreciate the urgency and the gravity of the situation for those individuals and those families.”
The Shadow Chancellor said “the underlying principle must be that wherever a person is sick or self-isolating or laid off from their employment, we must protect them and we will, and we will give them security”. Mr Sunak said that ministers would be setting out additional support for renters in coming days.
There was some good economic news that hinted at a reshaped coronavirus economy, with Morrisons announcing it would hire 3,000 new staff to make food deliveries, and online giant Amazon promising to raise pay for British workers by £2 an hour.
But Tesco reduced the hours for hundreds of stores as of last night, deciding to close all 24-hour stores at 10pm and reopening from 6am starting this morning. Asda also announced they were scaling back the opening hours of their 24-hour stores to help fill shelves.
The Scottish Government’s economy secretary welcomed the rescue package, but said: “We need to see substantial grant support and tax breaks to keep companies in business and people in jobs where possible.”
£330 billion Governmentbacked loans: Mr Sunak unveiled an “unprecedented package” of Governmentbacked loans worth £330 billion - equivalent to 15 per cent of GDP - to help businesses.
He said: “That means any business who needs access to cash to pay their rent, their salaries, suppliers or purchase stock will be able to access a Governmentbacked loan or credit on attractive terms.