On 17 March 2020 the UK government announced further measures to support businesses hit by the health crisis.
In announcing a package worth GBP 20 billion the Chancellor also confirmed that, as a result of government advice to people to avoid going to restaurants, pubs and theatres, these businesses would be able to make insurance claims where they have the relevant cover.
Business rates
The twelve-month exemption from Business Rates (the local property tax) announced in the budget last week would now be extended to all shops, pubs, theatres, music venues, restaurants and any other hospitality or leisure business.
Cash grants
Cash grants up to GBP 25,000 are to be made available to businesses whose rateable value is less than GBP 51,000.
For the smallest businesses cash grants of GBP 10,000 will be available.
Loans
The interest-free business interruption loans included in last week’s budget announcements are to increase to GBP 5 million, with no interest due in the first six months of the loan.
The Chancellor announced a total package of GBP 330 billion of loan guarantees for businesses. If necessary this package will be increased later.
A three-month mortgage holiday will be available in the case of difficulties caused by the health crisis.
Other
The Chancellor suggested that a potential support package for airlines and airports could be made available in the face of worldwide travel bans.
Local authorities would be compensated for revenue lost from the Business Rates cuts and other measures.
