The chancellor, Rishi Sunack standing alongside Boris Johnson this afternoon guaranteed £330bn of loans to businesses in a financial support package to shore-up the British economy in combating COVID-19. We are delighted to report that the hospitality industry were at the heart of today’s message from the government.
Earlier today we reported on a letter to Boris Johnson from UK Hospitality, co-signed by 200 + hospitality business CEOs requesting help, it seems from the government’s press briefing its message was received.
Sunak made an eloquent delivery saying the government will intervene in the economy in ways that were unimaginable just weeks ago, he went on to say he would also provide tax breaks and other measures worth £20bn to protect companies and households suffering amid the economic impact from the virus. Cash grants worth £25,000 would be made to companies to help them bridge through the period of turbulence.
Business rates – taxes paid on commercial properties – will be scrapped this year for all companies in hospitality, retail and leisure. He emphasised his message loud and clear saying: “Every single shop, pub, theatre, music venue, restaurant… will pay no business rates for 12 months”.
Following Boris Johnson advising people yesterday to avoid visiting pubs, clubs, theatres and other social venues, Sunak today was clear and confident saying: “This is a comprehensive, coordinated and coherent response to what is a serious and evolving economic situation. These are only the first steps.”
Sunack also said he would set out further steps in the coming days, and that he was holding talks with unions, trade bodies and business groups to develop a form of employment support to help protect jobs and incomes.
Whilst the devil is always in the detail, this does seem like a positive step in the right direction, and a much needed one also.