UK Budget 2020: Chancellor Unveils £30bn Coronavirus Package

11th March 2020

Chancellor Rishi Sunak has unveiled a £30bn package to help the economy get through the coronavirus outbreak.

Public safety is the government's top priority in its response to COVID-19 and it is taking firm and comprehensive action, consistent with the best scientific evidence.

As well as being focused on safety and the public health response to the outbreak, the government recognises that people will be concerned about the effect it will have on their livelihood, and business will be concerned about reduced demand, potential disruptions to supply chains and export markets, and to their workforce during this temporary period.

The Budget announces a £12 billion plan to provide support for public services, individuals and businesses, whose finances are affected by COVID-19. This includes a £5 billion COVID-19

response fund to ensure the NHS and other public services receive the funding they need to respond to the outbreak as the situation develops, and recover and return to normal afterwards.

For individuals it includes extending Statutory Sick Pay (SSP) for those advised to self-isolate, and those caring for others who self-isolate, and support through the welfare system for those who cannot claim SSP, as well as a hardship fund.

Finally, the government will support businesses that experience increased costs or disruptions to their cashflow. This includes expanded Business Rates reliefs, a Coronavirus Business Interruption Loan Scheme to support up to a further £1 billion lending to SMEs, a £2.2 billion grant scheme for small businesses, and a dedicated helpline for those who need a deferral period on their tax liabilities.

He is abolishing business rates for many firms in England, extending sick pay and boosting NHS funding.

He warned of a significant but temporary disruption to the UK economy but vowed: "We will get through this together."

The Bank of England announced an emergency cut in interest rates just ahead of the Budget on Wednesday.

The measures put in place to mitigate the effect of the coronavirus outbreak include:

Statutory sick pay for "all those who are advised to self-isolate" even if they have not displayed symptoms

Business rates for shops, cinemas, restaurants and music venues in England with a rateable value below £51,000 suspended for a year

A £500m "hardship fund" to be given to local authorities to help vulnerable people in their areas

A "temporary coronavirus business interruption loan scheme" for banks to offer loans of up to £1.2m to support small and medium-sized businesses

The government will meet costs for businesses with fewer than 250 employees of providing statutory sick pay to those off work "due to coronavirus"

Those on in-work benefits who get ill will be able to "claim from day one instead of day eight".

The number of coronavirus cases in the UK reached 456 on Wednesday, with a sixth person confirmed to have died after contracting the virus.

Mr Sunak, who was promoted to chancellor just four weeks ago after Sajid Javid quit the government, has had to hastily re-write the government's financial plans to deal with coronavirus.

"We are doing everything we can to keep this country and our people healthy and financially secure," he told MPs.