Chancellor announces £330 billion package to help businesses in wake of coronavirus

Chancellor Rishi Sunak with Prime Minister Boris Johnson Picture: Matt Dunham/PA Wire

Chancellor Rishi Sunak with Prime Minister Boris Johnson Picture: Matt Dunham/PA Wire - Credit: PA

A support package, worth £330 billion has been announced to help businesses in the wake of the coronavirus.

Chancellor, Rishi Sunak announced a number of new measures on Tuesday afternoon to help businesses.

Mr Sunak stressed that the Government would be doing “whatever it takes” to help businesses.

Mr Sunak said: “The Government will stand behind businesses small and large.

“I can announce today an unprecedented package of Government backed and guaranteed loans to support business to get through this.

“Today I am making available an initial £330 billion of guarantees, equivalent to 15% of our GDP.

“That means any business who needs access to cash to pay their rent, their salaries, suppliers or purchase stock will be able to access a Government backed loan or credit on attractive terms.

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“And if demand is greater than the initial £330 billion I’m making available today, I will go further and provide as much capacity as required.

“I said whatever it takes, and I meant it.

Mr Sunak said the support would be delivered through two schemes.

“To support liquidity amongst larger firms I have today agreed a new lending facility with the Governor of the Bank of England to provide low cost, easily accessible commercial paper,” said Mr Sunak.

“To support lending to small and medium sized businesses, I am extending the new business interruption loan scheme I announced at Budget last week so that rather than loans of £1.2 million it will now provide loans of up to £5 million with no interest due for the first six months.

“Both of these schemes will be up and running by the start of next week.”

Mr Sunak added that he would also be taking “a new legal power” to “offer whatever further financial support I decide is necessary”.

For individuals Mr Sunak announced that for those in financial difficulty due to coronavirus, mortgage lenders will offer a three-month mortgage holiday.