The government has frozen business rates for all retail, leisure and hospitality firms for a year as part of a package of financial measures to help the economy mitigate the effects of coronavirus.
Last week, chancellor Rishi Sunak granted a business rates holiday for all firms with a rateable value of less than £51,000. The latest measure, introduced at today’s coronavirus press conference, is an extension of this.
Those with a rateable value of under £51,000 will additionally be entitled to a £25,000 grant.
Sunak also unveiled a bail-out package in the form of £330bn guaranteed business loans. This represents 15% of GDP.
This will be available for any business that needs access to cash to pay rent, salaries, suppliers or purchase stock.
He added that to support liquidity at larger firms, a new lending facility has been agreed with the Governor of the Bank of England to “provide low-cost, easily accessible commercial paper”. This will come into effect next week.
Mortgage lenders will also offer a mortgage holiday covering at least three months for those struggling with the impact of coronavirus.
“We have never faced an economic fight like this one,” said Sunak. “But we are well prepared. We will get through this, and we will do whatever it takes.”
The news comes after the government was heavily criticised by the hospitality sector for recommending that people avoid pubs, clubs, restaurants and bars without any further support for the businesses affected.
Jerry Schurder, head of business rates at Gerald Eve, said: “This is the chancellor bringing out the big guns and will be hugely welcomed.
“It was always a foolish mistake that larger properties were excluded from previous measures, so it is great to see this corrected, bringing many thousands of businesses precious breathing room.”
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