Latest report and "unprecedented" announcements from the Chancellor Rishi Sunak
This afternoon, Chancellor Rishi Sunak announced a major package of economic interventions to support businesses and employees through the coronavirus outbreak. The major news was that the government will cover 80% of the wages of those who are unable to work due to the coronavirus, up to the value of £2,500 per month.
With this new update, business owners and employees across the nation can move forward with optimism and focus on pushing through the next few months.
William Garvey, Managing Director of Leyton UK, said: “The measures announced by the Chancellor today are an extraordinary intervention which means that the government is underwriting the salaries of UK private-sector employees. In these remarkable circumstances, the government has taken unprecedented actions to support the economy, which has seen whole swathes of activity suddenly grind to a halt. Businesses will rightly see these measures as a much-needed form of life support to get them through the coming months and they should go a long way towards keeping businesses and families afloat through the worst of the potential hardship.
“We urge businesses of all sizes to look closely at the full range of financial support that has been made available, in addition to existing – and often underused – financing options such as R&D tax credits. Now is the time to explore every avenue to aid cash flow in order to support staff and ensure that a business can survive the economic difficulties that come with these uniquely challenging times.”
FisherBroyles Employment Partner Peter Finding added: “As the Chancellor said, this is unprecedented. The cap of £2,500 per month appears designed to cover those employees earning up to the average UK salary. It will, therefore, be a massive boost to businesses, who may otherwise have faced the need to cut jobs or even face closure, and will be extremely welcome.”
If you are a business owner and need support, find out more at the British Business Bank as more updates flood through over the coming days.
