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Treasury Covid-19 support to businesses hits £50bn

More than £50 billion of loans to businesses hit by Covid-19 have been approved so far, the Treasury has said.

This includes, up to August 2, £33.34 billion in Bounce Back Loans for 1,135,575 businesses.

The Government, which is guaranteeing the vast majority of the loans should they not be repaid, added that £13.08 billion has been endorsed through the Coronavirus Business Interruption Loan Scheme (CBILS) and £3.27 billion through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) to larger firms.

A total of 537 convertible loans have been awarded through the Future Fund, totalling £534 million.

The Government is continuing to support the salaries of 9.6 million workers on furlough through the Coronavirus Job Retention Scheme.

The latest HM Revenue & Customs figures up to August 2 show 1.2 million businesses are claiming a total of £33.8 billion.

Responding to the updates, Federation of Small Businesses (FSB) national chairman Mike Cherry said: “Nine in 10 people who moved from unemployment back into the workplace after the financial crash did so through a small business or self-employment.

“Many were striking out on their own for the first time, so support for new businesses over the months ahead – especially through the Start-up Loans Programme and New Enterprise Allowance – will be integral to recovery.

“Small firms and their staff need to be confident that the infrastructure is there to tackle this virus. We were promised a world-beating Test and Trace system, and such a system is integral to getting businesses firing on all cylinders again.

“While most have benefited from direct government support, many have not. Thousands of directors and newly self-employed people have been left with no help for months now. As we look to the autumn, the Government needs to think carefully about how it will help those who have been left behind.

“Bounce Back Loans have provided critical cash injections for huge swathes of the small business community. Firms now need a guarantee that they won’t have to start making repayments until they’re making a profit. Such a pledge would give them the confidence to invest, recruit and expand today rather than hoard cash for fear of what’s coming down the line.”

There are several government incentives that are still accessible in this season, especially if you are a UK business engaged in research and development. Schemes such as the R&D Tax Credit scheme and Patent Box reward companies who are innovating. Whether that be developing a new or improving an existing product or process, you could be eligible for up to 33p for every £1 spent on qualifying activities.

If you would like to find out more or check to find out if you are eligible, speak to one of our advisors for a free consultation.