Guidance for members on Government financial support packages for business

The Chancellor, Rt Hon Rishi Sunak, has announced a package of measures designed to help businesses large and small through the tough financial period ahead.

We have been in discussions both with the Chancellor and his team, as well as the Confederation of British Industry (CBI) and we wanted to explain the package of measures you can apply for if you need assistance to keep your firm running.

The CBI wanted us to give prominence to the following key messages, in particular, on the loans package announced:

  • There is no limit on the funding Government will offer to the wider economy; it is demand led and they will provide whatever is needed for the country;
  • Every business will be able to apply for help if it needs it;
  • Demand for the various schemes is likely to be high, you may not get through immediately, but you will eventually;
  • Timescales for delivering Government-backed loans through the banks is around a week from when the application is submitted to when the cash arrives in a business’ account; and
  • Hold your nerve; don’t let employees go if you can avoid it as help is available.

A whole range of measure are being introduced including furloughing staff that may not be needed during the coming months.

The Government has published a page on its website www.gov.uk which highlights the support packages available and where to go and get help.

We strongly that you visit the page and study the contents if you feel that you may need financial assistance. You may also wish to share the information with your commercial clients which may also need assistance.

You can read all of the Government information on financial support here.

The assistance potentially available to brokers includes:

  • Furloughing employees with Government paying and paying of 80% wages to those who would otherwise have been laid-off or let go;
  • Deferring VAT and Income Tax payments;
  • Support for businesses paying sick pay to employees
  • Grant support for businesses that pay low or no business rates;
  • Covid-19 Corporate Financing Facility, where the Bank of England will buy short term debt from larger companies;
  • Support with tax affairs through HMRC’s Time To Pay service;
  • Government-backed Coronavirus Business Interruption Loan Scheme (CBILS).

You can find the CBI’s guidance for businesses here

The BIBA team is continuing to liaise frequently and at the highest level with both Government and insurers on current and future issues caused by the measures to counter the virus. We of course are as usual continuing to represent your interests as robustly as we always have done.

The post Guidance for members on Government financial support packages for business appeared first on British Insurance Brokers' Association.

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