Government announces COVID-19 support for businesses

By Tim Aldred

18 Mar 2020

Rishi Sunak, the government's chancellor, has unveiled a £350bn package of support to help businesses survive the impact of the COVID-19 virus.

The funding includes support funding sick leave for employees and temporary holidays for rates payers.

He said: "This is not a time for ideology and orthodoxy, this is a time to be bold, a time for courage. I want to reassure every British citizen this government will give you all the tools you need to get through this.

"That means any business who needs access to cash to pay their rent, their salaries, suppliers or purchase stock will be able to access a government-backed loan or credit on attractive terms."

Statutory Sick Pay

The government will refund up to two weeks of SSP per eligible employee who has been off work because of COVID-19. This amounts to a little under £200, and is available to businesses which employed 250 or fewer at the end of February.

Action: To make a claim, employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note. 

However, there is currently no mechanism in place to the repayments, and experts are warning that the funds may not materialise for several months yet.

Business rates relief

The government has increased the Business Rates retail discount in England to 100 per cent for the 2020 to 2021 tax year for properties below £51,000 rateable value. The relief will also be extended to the leisure and hospitality sectors, and there is also a £5,000 business rates discount for pubs with a rateable value below £100,000 in England.

The government has also set aside £2.2bn funding for local authorities to support small businesses that already pay little or no business rates because of Small Business Rate Relief (SBBR). This will provide a one-off grant of £3,000 to businesses currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs.

Action: Companies will need to apply for the discount through their local councils. Further guidance is due to be published on March 20.

Business interruption loans

The British Business Bank will launch a temporary Coronavirus Business Interruption Loan Scheme which will give businesses access to bank lending and overdrafts. The government will also support lenders by guaranteeing 80 per cent of each loan granted to SMEs, and will not charge businesses or banks for the service.

Help paying tax

Businesses and self-employed people who are in financial distress may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. The standard 3.5 per cent annual interest on deferred tax payments will be waived.

Eligibility will be judged on a case-by-case basis related to individual circumstances and liabilities.

Action: Businesses or individuals seeking support should contact the HMRC on 0800 0159 559.

  • For further Lancashire business news, advice and analysis subscribe to Lancashire Business View or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Tim Aldred

Latest news

1

Meet the influencers who have generated £2m sales for one company Helen and Richard Chalu new

Meet the influencers who have generated £2m sales for one company

16 Oct 2025

2

WHN strengthens position in prestigious legal guide Daniel Long

WHN strengthens position in prestigious legal guide

16 Oct 2025

3

Warden appoints new commercial manager to strengthen project delivery and growth Peter Heskine

Warden appoints new commercial manager to strengthen project delivery and growth

16 Oct 2025

4

Stockley's finds its sweet spot Stockley's front view

Stockley's finds its sweet spot

15 Oct 2025

5

Breck to start £15m Blackpool affordable homes and retail development Cropper Road, Blackpool

Breck to start £15m Blackpool affordable homes and retail development

14 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancaster District Business Support Expo
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
29 Oct 2025 - 29 Oct 2025

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

10:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin