Chancellor Announces Further Support For Businesses In Response To COVID-19
Chancellor Rishi Sunak has announced further financial support for businesses in response to the COVID-19 outbreak.
Dated: 18 March 2020 Author: Richard McNeilly, Managing Partner
The Chancellor made the pledge in the House of Commons on Tuesday 17th March which follows on from measures he proposed at the budget on Wednesday 11th March.
The support measures include:
- A package of £330bn of loan guarantees to businesses with more to be made available if needed
- Interest-free business interruption loans will be increased to £5m from the £1.2m announced at the budget. No interest will be due for the first six months
- A 12 month business rates holiday for all shops, pubs, theatres, music venues , restaurants and any other hospitality or leisure business
- A cash grant of up to £25,000 for businesses with a rateable value of less than £51,000
- A three month mortgage holiday for those in difficulty because of COVID-19
- Cash grants of £10,000 to 70,000 of the smallest businesses
Richard McNeilly, Dains Managing Partner, said: “I urge business owners to act early. If the last recession taught us anything, it was the advantage to be gained by having sufficient cash to trade.
“Cashflow can be improved in many different ways and we have a skilled team capable of advising clients on profit improvement, cashflow forecasting, finance raising (through traditional and sometimes less obvious channels) and negotiation with HMRC.
“I genuinely hope that talk of a recession is premature but think that it is important to plan for a downturn, long before business performance dips.
“We can also assist clients with temporary support for the finance function, should employees become sick or self-isolate, often utilising cloud technology and remote working.
“Our message is simple. We are open for business and keen to help.”