Coronavirus Financial Aid: What the Government Has Promised So Far

A 3D image of a virus

With the ongoing Coronavirus pandemic currently gripping the world’s attention, we are living in truly unprecedented times. Individuals are rightly concerned, not only about the health of themselves and their loved ones, but about the economic impacts that the virus will have.

In wake of this crisis, the government has outlined several measures to support families and businesses during this time, with more support being promised in the coming days, weeks, and months. 

Below, Cave & Sons have collated several of the economic promises made by Rishi Sunak at the 2020 Budget (11/3/20) as well as the recent press conference (16/3/20).

2020 Budget

Rishi Sunak’s first Budget was undoubtedly overshadowed by Coronavirus. Indeed, he opened the Budget by unveiling a £12billion package to support the UK through the pandemic. As part of the package, £5billion was promised to support the NHS. This money will go to providing hospitals with equipment, extra space, and more staffing.

The remaining £7billion was dedicated to supporting businesses and families through this tough time. Statutory sick pay has been promised to all workers who are self-isolating, regardless of symptoms. Furthermore half a billion pounds has been allocated to local governments to support vulnerable families.

Many other measures were announced, however the ever changing situation resulted in these measures being updated at a press conference on Monday 16th March. Please find the most recent highlights below.

Press Conference – 16/3/20

In the first in a series of daily press conferences, Boris Johnson and Rishi Sunak announced an array of new and updated measures. It began with Mr. Sunak revealing a £330billion package to support many strands of the UK economy.

Businesses across the nation will now be able to apply for a loan of up to £5million. Many pubs, restaurants, theatres and other smaller businesses will be forced to close their doors as a result of social distancing, so these loans could provide them with vital cash flow. The loans are promised to be attractive and interest free for six months. 

This is an upgraded version of a previous promise made as part of the Budget; originally only small to medium-sized businesses would have been able to apply for a loan of up to 1.2million.

Furthermore, small businesses in the aforementioned sectors will be able to apply for a grant of up to £25,000 to help them see through this period. 

Future Announcements 

The aid for business will be greatly appreciated, and will help support livelihoods by mitigating the need for some businesses to close or make cuts. That being said, many are still concerned over support for individuals who may see unemployment or those who are struggling to pay bills.

The government has alluded to support in this regard, including mortgage holidays and banning landlords from evicting tenants who are being negatively affected by the pandemic.  

Cave & Sons 

We are here to support you and your family during this time. Based in Northampton, Cave & Sons are proud to offer expert financial advice and guidance in financial planning. If you would like to know more, please contact us on 01604 621 421, or, alternatively, use our online contact form and we will endeavour to be with you as soon as possible.

Cave & Sons Ltd is authorised and regulated by the Financial Conduct Authority (FCA),  Financial Services Register number 143715.

This communication is for general information only and is not intended to be individual investment advice, tax or legal advice. The views expressed in this article are those of Cave & Sons and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. You are recommended to seek professional regulated advice before taking any action. Tax and Estate Planning Services are not regulated by the Financial Conduct Authority