New coronavirus response committee convenes for the first time

Among other things, the committee, chaired by the Chancellor, discussed government support for businesses affected by COVID-19, including urgent progress on delivering the £12 billion of measures to support businesses in last week’s budget.

These include:

• reimbursing small and medium-sized businesses for up to two weeks’ statutory sick pay for each employee absent due to COVID-19
• extending business rates cuts so that 900,000 small businesses will pay no rates at all in 2020/21, to help them manage financial pressures created by COVID-19
• providing £2.2 billion funding for one-off grants of £3,000 to around 700,000 small businesses and businesses
• a new temporary Coronavirus Business Interruption Loan Scheme to be launched within weeks to support businesses to access £1bn of additional bank lending
• a dedicated HMRC helpline to enable businesses in financial distress to discuss deferring tax bills where necessary

“We are doing everything we can to keep this country, and our people, healthy and financially secure. We know how concerned businesses are and are working around the clock to ensure they have access to the funding and support they need,” said Rishi Sunak.

Mr Sunak updated the committee on last Thursday’s meeting with financial services firms which agreed an additional £21 billion of lending capacity to firms.

The committee - made up of the Secretary of State for Business Alok Sharma and attended by Secretaries of State for DCMS, Transport, MHCLG, DIT and DWP, as well as senior officials from across Whitehall - agreed that further measures would be taken as the situation develops.

The Chancellor asked Cabinet Ministers to lead round tables with business groups, including in those sectors most directly affected. The committee also discussed the importance of keeping under review regulations, and lightening their burden where possible, including in response to requests from business.

“Businesses have a vital role to play in fighting the spread of the Coronavirus, from looking after the wellbeing of their employees, to keeping goods and services flowing wherever possible. I am having ongoing conversations with businesses from across different sectors and the government stands ready to provide the support that is required,” said Secretary of State for Business, Alok Sharma.