Chancellor unveils £330bn coronavirus support package

Rishi Sunak has pledged to make £330bn of loans available to businesses to support them through the coronavirus pandemic.

In the second of the government’s daily press conferences, the chancellor said the government would offer guarantees to stand behind commercial loans to businesses to ensure that firms can get access to the funding they need.

Sunak said the government will make more funding available should demand for the loans outpace supply.

He also said the government will offer additional cash support for businesses in vulnerable industries, and had secured an agreement from mortgage lenders to waive payments for a three-month period for individuals in difficulty.

The government has also halted the planned introduction of reforms to the IR35 system of taxation for self-employed workers, which some feared could have hit construction businesses.

In total, Sunak said the £330bn of loan guarantees represented a commitment worth 15% of the UK’s annual GDP. Other measures, such as business rates holidays and grants to small businesses focusedon the those in the retail, leisure and hospitality industries, were worth a further £20bn. This is on top of the £30bn package of measures announced in last week’s Budget.

Sunak said the government would do “whatever it takes” to support the economy. He said: “It is also an economic emergency. We have never in peacetime faced an economic fight like this one.

“What we are planning is a national effort underpinned by government intervention sin the economy unimaginable on a scale only weeks away. This is not a time for ideology or orthodoxy

“We will support jobs, support incomes, support business, and help you protect incomes.

“We will do whatever it takes.”

The chief executive of the Riba, Alan Vallance, said the body welcomed the package of measures and but that it was writing to the government with specific requests for further measures to help architects. He said: “More will be needed to support SMEs – most architecture practices – who are already feeling the pain of this pandemic. The Government must ease the cash squeeze faced by many practices and their clients, and provide clarity on how it will keep the planning system operating and construction sites open so that projects can progress

UK Finance, the trade body which represents banks and mortgage lenders, said borrowers concerned about meeting their repayments should contact their lenders to secure a payment holiday. Stephen Jones, UK Finance CEO, said: “Mortgage lenders will support customers who are experiencing issues with their finances as a result of COVID-19 and the options include a payment holiday of up to three months.

“Monthly mortgage payments tend to be the largest outgoing for the vast majority of households and lenders are keen to reassure homeowners that the industry is working hard to put measures in place to support them during these uncertain times.”