- Wednesday, April 24, 2024
By: Pramod Thomas
BRITAIN offered a new £4.6 billion ($6.2 billion) support package for businesses struggling to cope with a third national lockdown that began this week to stem a new wave of Covid-19 cases sweeping the country.
Finance minister Rishi Sunak said retail, hospitality and leisure companies will be able to claim new one-off grants worth up to £9,000 to help them through the first months of 2021.
“The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further,” said chancellor Sunak.
“Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring.
“This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
Under the scheme, a further £594m will be made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply to their Local Authorities, an official statement said.
The new one-off grants come in addition to billions of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.
The government has also provided 100 per cent business rates relief for retail, hospitality and leisure businesses, £1.1bn existing discretionary funding for Local Authorities. Besides, the furlough scheme now extended to April and 100 per cent government backed loans, extended until March.
Prime Minister Boris Johnson announced the lockdown late on Monday(4) saying the highly contagious new coronavirus variant first identified in Britain was spreading so fast it risked overwhelming the National Health Service (NHS) within 21 days.
Sunak said in November that measures taken to that point to help the economy through the pandemic would cost about £280bn this financial year.
