£30bn stimulus to tackle Coronavirus crisis

The Chancellor revealed a £30bn package of measures designed to help the UK weather the impact of Coronavirus over the coming weeks and months.

Rishi Sunak acknowledged the population’s fears for their health, jobs, income and financial security.

But he also offered a message of hope, saying that while the disease’s impact on the UK economy would be significant, it would be temporary.

Citing the forecast that up to a fifth of the working-age population could need to be off work at any one time, he added: “This combination of people being unable to work and businesses being unable to access goods will mean that for a period our productive capacity will shrink.

“There will also be an impact on the demand side of the economy, through a reduction in consumer spending,” Mr Sunak says.

He pledged that the Government would give the NHS the resources it needs during the Coronavirus outbreak.

“Whatever extra resources our NHS needs to cope with Covid-19 – it will get,” he said.

“So, whether it’s research for a vaccine, recruiting thousands of returning staff, or supporting our brilliant doctors and nurses… whether it’s millions of pounds or billions of pounds whatever it needs, whatever it costs, we stand behind our NHS.”

Sunak said Statutory Sick Pay (SSP) would be available for all those advised to self isolate – even without symptoms.

Benefits for self employed will be available from day one, with the minimum income floor in Universal Credit to be temporarily removed, and the rules requiring people to visit job centres in person relaxed.

For businesses with fewer than 250 employees Government will fund SSP for two weeks.

Sunak said a Coronavirus loan scheme will be introduced to cover the cost of salaries and bills. It will offer loans of up to £1.2m to support small and medium sized businesses.

“The Government will offer a generous guarantee on those loans, covering up to 80% of losses, with no fees, so that banks can lend with confidence,” he said.

“This will unlock up to £1bn of attractive working capital loans to support small businesses, with more as needed.”

Summarising the Coronovarius related measures, Sunak said: “The extraordinary measures I have set out today represent £7bn to support the self-employed, businesses and vulnerable people.

“To support the NHS and other public services, I am also setting aside a £5bn emergency response fund – and will go further if necessary.

“Those measures are on top of plans that I will set out later in this Budget, which provide an additional fiscal loosening of £18bn to support the economy this year.

“That means I am announcing today, in total, a £30bn fiscal stimulus to support British people, British jobs and British businesses through this moment.”