Bill for propping up workers goes past £80bn mark

THE cost to taxpayers of propping up firms and jobs during the coronavirus crisis has soared past £80billion.

New figures released by the Treasury yesterday showed that more than £45billion has been handed to businesses in loans.

These include a million “bounceback” capital injections at a cost of almost £31billion.

Figures also showed that 53,500 Coronavirus Business Interruption Loans worth £11.5billion have now been approved. The data revealed that 783 applications worth over £2.5billion have now been approved under the Government’s Coronavirus

Large Business Interruption

Loan Scheme.

Meanwhile, 9.4 million jobs have been furloughed as firms have claimed £27.4billion to keep workers in employment.

And 2.7million self-employed have claimed grants worth £7.7billion.

The update came on the eve of the Chancellor’s summer economic update in Parliament, where he will announce a “minibudget” today.

Rishi Sunak said: “Our small businesses are the powerhouse of our economy and will help drive our recovery as we bounce back from this global crisis.

“We’ve worked hard to give small businesses the help they need, from loans and grants to paying the wages of their staff.”

Separate figures revealed that £27.5billion in VAT payments has been deferred.

Business Secretary Alok Sharma said: “We promised to stand behind small businesses to get through this crisis and we’ve done it.”

Mike Cherry, chairman of the Federation of Small Businesses, said: “A focus on jobs is absolutely essential to lift the country out of the economic hardship caused by the Covid crisis.

“And with 700,000 16 to 24-year-olds due to join the labour market this summer, it needs a major intervention to prevent a generation lost to long-term unemployment.”

Mr Cherry said small businesses were disproportionately more likely to employ young people and called for more government support for apprenticeships. He added: “It’s vital to see support for jobs right across the board.”

‘Small businesses are powerhouse of economy and will drive recovery’