Alert
Alert
By James Campbell,
03.19.20
On 17 March 2020, the UK government announced a rescue package worth £330 billion to assist businesses struggling with the ‘economic emergency’ caused by the coronavirus pandemic in the UK. These measures, outlined by the Chancellor of the Exchequer Rishi Sunak, are in addition to £12bn of extra spending specifically targeted in response to the public health crisis that was promised by the government as part of the Budget announced last week.
The rescue measures include:
HM Treasury and the Bank of England have also announced the Covid Corporate Financing Facility (CCFF),which will provide financial assistance to companies facing cash flow disruption as a result of the pandemic. Financing will be made available by the Bank of England via the purchase of commercial paper with a maturity of up to one year issued by investment grade non-financial firms making a material contribution to the UK economy. It is intended that the CCFF will operate for an initial period of 12 months. Further details, including application documentation, are expected to be published on 23 March.
The Chancellor also announced an agreement with banks to grant a mortgage holiday of up to three months for homeowners in difficulty as a result of the pandemic.
Government ministers are also set to hold talks to discuss support packages for other affected sectors, such as aviation.
Pillsbury’s experienced crisis management professionals are closely monitoring the global threat of COVID-19, drawing on the firm's capabilities in supply chain management, insurance law, cybersecurity, employment law, corporate law and other areas to provide critical guidance to clients in an urgent and quickly evolving situation. For more thought leadership on this rapidly developing topic, please visit our COVID-19 resources page.
For further information on how to access the UK government package to support your business and employees in the UK, please contact James Campbell or Kristy Duru in the London office or your normal Pillsbury contact.