STATEMENT ON TODAY’S ECONOMIC ANNOUNCEMENT
The coronavirus is not just a health emergency but an economic one too. And this evening the Chancellor set out unprecedented Government intervention to match the exceptional health measures set out by the Prime Minister yesterday.
Many constituents have been in touch with me over recent hours and days to tell me of the concerns they have for their livelihoods in this difficult time. It’s absolutely vital that households and businesses are economically secure so we can all focus on our health and that of our loved ones.
When we emerge from this coronavirus outbreak as we undoubtedly will, we will need our local businesses and their hard-working employees to be at the heart of our recovery. This includes our local pubs, shops, restaurants and leisure businesses who are so much more than just the backbone of our local economy. They are focal points for our community and contribute enormously to the social cohesion of our town. If we are unable to support them with our custom, we must support them and their employees in whatever way they need in the meantime. The Chancellor has responded to this in his statement this evening as he announced the following measures:
A package of government-backed and guaranteed loans to support business worth £330 billion initially. This will be available to businesses to pay their suppliers, rent and salaries. The £330 billion will be expanded with no ceiling if necessary.
For small and medium sized businesses, this money will be made available through an extension of the business interruption loan scheme announced in the Budget. This scheme will make loans available of up to £5 million per business with no interest due for the first 6 months. This scheme will be up and running by the start of next week.
Pubs, clubs, retailers and hospitality and leisure industry venues with an insurance policy which covers pandemics will be able to make an insurance claim.
For those types of businesses without insurance and a rateable value of less than £51,000, they will be entitled to an additional cash grant worth £25,000.
All pubs, clubs, shops and hospitality and leisure industry businesses will be exempt from paying business rates over the next year.
The 700,000 smallest businesses in the country will now receive a cash grant of £10,000, up from £3,000 as previously announced in the Budget.
A 3-month mortgage holiday for home owners affected by coronavirus.
The eligibility criteria for statutory sick pay will be extended so more are covered. Businesses will be supported with the extra costs incurred.
And for those who are ineligible for statutory sick pay, access to the benefits system will be sped up. Those eligible for universal credit will be able to access advanced payments without visiting a job centre. Support will be available from the first day of self-isolation or sickness.
Whenever statements like this are made which will have such a significant impact on people’s livelihoods, there is a focus on the detail which sometimes takes more time to come out. Many small business owners have already contacted me about how they can access the cash grants which will now be worth £10,000 and I’m urgently looking to obtain further information about this. I am fully aware that time is of the essence for their businesses and I’ll be working directly with pubs, shops and other local companies over the coming weeks and months. I will be available to meet with landlords, local business owners and store managers to go in to detail about the specific challenges they are facing. If you would like to arrange a meeting, please contact me at: email@example.com
I understand the urgency of the situation and the importance of certainty for all businesses and households. I am closely following all developments and will be updating constituents as soon as I learn more. It’s welcome for example that clarification has already been given that pubs, cafes and restaurants will be able to offer takeaway and delivery services if they wish thanks to emergency changes in the planning laws.
The Chancellor was clear that today’s measures only represent one of several steps that will be taken as part of a comprehensive national effort to support our economy and I understand that a number of issues have yet to be fully addressed. This includes those private renters who have contacted me with their concerns about affording their rent if they become sick or have to self-isolate. The Chancellor has said he will make further statements soon about the issues faced by private renters and I’ll be following what this means for my constituents very closely.
The Chancellor emphasised today that he will do whatever it takes to support businesses and households through these exceptional circumstances. It’s now essential that this approach and the measures announced are realised on the ground in Ipswich. As the number of coronavirus cases reaches a point of rapid increase, we must get this right now. I will do whatever it takes as your MP to get businesses and households in our town the support they need.
Since my statement yesterday, I have also written to care homes and churches across Ipswich to offer my full personal support and the support of my office to many of the vulnerable people that they serve. I hope to be able to engage closely with these organisations to coordinate help for groups like the elderly. I’m setting up a service called ‘Talks with Tom’ to keep the vulnerable in self-isolation company over the phone and I’m also making myself available to help with things like shopping and dog walking. I’ll be working closely with charities and community groups like Age UK to ensure these initiatives are as effective as possible. If you would like to get involved, please do not hesitate to get in touch at firstname.lastname@example.org
Please continue to follow the latest health advice through the NHS’s website: https://www.nhs.uk/conditions/coronavirus-covid-19/
And once again, please do not hesitate to get in touch if you have any coronavirus concerns. I can be reached at email@example.com
I will keep you fully updated as the situation develops.
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