A new Committee to address the economic and business issues
presented by COVID-19 has met for the first time today.
The Committee is chaired by Chancellor of the Exchequer,
, with Secretary of State
for Business as Deputy Chair. It is also
attended by the Secretaries of State for DCMS, Transport, MHCLG,
DIT and DWP, as well as senior officials from across Whitehall.
The Committee discussed government support for businesses
affected by COVID-19, including urgent progress on delivering the
£12 billion of measures to support businesses in last week’s
Budget:
- reimbursing small and medium-sized businesses for up to two
weeks’ statutory sick pay for each employee absent due to
COVID-19
- extending business rates cuts so that 900,000 small
businesses will pay no rates at all in 2020/21, to help them
manage financial pressures created by COVID-19
- providing £2.2 billion funding for one-off grants of £3,000
to around 700,000 small businesses and businesses
- a new temporary Coronavirus Business Interruption Loan Scheme
to be launched within weeks to support businesses to access £1bn
of additional bank lending
- a dedicated HMRC helpline to enable businesses in financial
distress to discuss deferring tax bills where necessary
The Chancellor updated the Committee on last Thursday’s meeting
with financial services firms which agreed an additional £21
billion of lending capacity to firms. The Committee agreed that
further measures would be taken as the situation develops, and
agreed a reinforced effort to ensure that businesses are aware of
support available to them and know how to access it. The
Chancellor asked Cabinet Ministers to lead round tables with
business groups, including in those sectors most directly
affected. The Committee also discussed the importance of keeping
under review regulations, and lightening their burden where
possible, including in response to requests from business.
Chancellor of the Exchequer said:
We are doing everything we can to keep this country, and our
people, healthy and financially secure. We know how concerned
businesses are and are working around the clock to ensure they
have access to the funding and support they need.
Secretary of State for Business, said:
Businesses have a vital role to play in fighting the spread of
the Coronavirus, from looking after the wellbeing of their
employees, to keeping goods and services flowing wherever
possible. I am having ongoing conversations with businesses
from across different sectors and the government stands ready
to provide the support that is required.
Notes
- the Committee will continue to meet weekly, and more
regularly as required
- the Chancellor met the new Governor of the Bank of England,
Andrew Bailey, earlier this morning. The Treasury and Bank of
England are working closely together to support the economy
through COVID-19. The measures announced by the Chancellor on
Wednesday are on top of the measures the Bank of England is
taking to free up an additional £190 billion for banks to lend to
businesses, and a new £100 billion scheme to help ensure
households and businesses – particularly small businesses –
benefit from the reduction in interest rates to 0.25%.
- the economic response to the COVID-19 situation was also
discussed at COBRA earlier in the afternoon
