Rishi Sunak will today in his first Budget unveil a multi-billion pound aid package to help Britain’s businesses get through the coronavirus outbreak.
Measures the Chancellor has been considering include:
*short-term tax holidays, covering VAT and National Insurance, used during the 2001 foot-and-mouth outbreak to help farmers hit by cashflow problems;
*a “hardship fund” for employers with up to 100 staff to help recover some of the costs to their businesses and
*guaranteeing bank loans for firms as well as offering loans at cheap interest rates, similar to measures introduced after the 2008 financial crisis.
Mr Sunak has already made clear the Government will not penalise people who do the right thing by, for example, self-isolating themselves to protect their local communities.
As those infected by the virus could jump significantly in the coming weeks, the Chancellor is thought to have considered the reintroduction of a statutory sick pay rebate to reimburse small businesses whose employees are off work because of the outbreak.
Mr Sunak has also promised to give the NHS “whatever it needs” to deal with the public health crisis.
Next week, emergency legislation is set to be tabled at Westminster to enable as many as three million volunteers to commit to helping the country’s health and social care system while having their day jobs protected for up to four weeks.
At the weekend, Mr Sunak declared: “We will provide the funds to get through this.”
Tax holidays, a hardship fund and cheaper bank loans are among the measures being called for by the Federation of Small Businesses as well as a cut in the VAT rate should consumer demand significantly fall away.
Mike Cherry, the federation’s National Chairman, said: “Today’s Budget is the Chancellor’s first big test and an opportunity to show he is unequivocally on the side of the small business community at an uncertain time.
“Supporting small firms that are being impacted by the spread of coronavirus means both introducing new, targeted measures and delivering on existing promises.
“The horse has already bolted in many countries, so it’s critical that the Chancellor takes action now to mitigate any future escalation of the situation here in the UK,” he added.
John McDonnell for Labour said the Government’s austerity programme of the last decade had left the economy and public services in a “vulnerable position to deal with a shock like this”.
“We need urgent investment to deal with the three crises on our hands – coronavirus, the climate emergency, and the crisis in our public services – and our concern is that the public will naturally be disappointed as the Budget fails to address these issues effectively,” added the Shadow Chancellor.
Ian Blackford, the SNP leader at Westminster, called on the Tory administration for “specific measures” to protect businesses, jobs, and livelihoods.
“It must learn from the example of the Irish Government which has brought forward a targeted €3bn aid package of support and increased the personal rate of illness benefit.”
The Highland MP urged Mr Sunak to deliver support for the tourism and hospitality sector, which was facing a difficult climate with reduced customers.
"This Budget will be one of the most crucial since the financial crash in 2008 and it is vital the UK Government commits to major investment and support for businesses across different sectors,” insisted Mr Blackford.
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