The UK Government has announced a programme of state-backed loans to help businesses survive the COVID-19 crisis. GBP33bn (€358bn) will be made available – the largest peacetime investment of its kind.
Grants of up to GBP25,000 will be available to firms working in retail, leisure and hospitality. Smaller businesses can apply for up to GBP10,000. The terms of the loan have yet to be confirmed.
Further, the Government will offer tax breaks and other incentives to help vulnerable companies. For example, taxes paid on commercial properties will not be collected for the next 12 months.
“We must act like any wartime government and do whatever it takes to support our economy,” said UK chancellor Rishi Sunak. “This is a comprehensive, coordinated and coherent response to what is a serious and evolving economic situation.”
The move comes after the US Government pledged USD850bn (€774bn) in financial support for US citizens.