Chancellor Rishi Sunak to unveil lifeline for virus-hit businesses
Chancellor Rishi Sunak is today expected to unveil a raft of additional measures to help the economy amid fears the coronavirus outbreak could put some firms out of business.
In a joint press conference with Prime Minister Boris Johnson, scheduled for today, the chancellor will offer a larger bail-out fund for struggling firms, according to reports.
The lifeline will come less than a week after Sunak unveiled his Budget, which included a £30bn package designed to steer the country through the health crisis.
One area of focus could be the UK’s airline industry, which has been crippled by the impact of travel restrictions.
Bosses at Virgin Atlantic are said to have called for a £7.5bn government bail out amid fears that mass flight cancellations could send airlines under.
Pubs, restaurants and theatres have also raised the alarm about new government measures to contain the spread of the virus, warning of a “catastrophic” impact on the hospitality business.
The prime minister yesterday urged Brits to practice “social distancing” by staying at home rather than eating out or going to the pub or theatre.
But he stopped short of forcing the venues to close, meaning businesses have no financial protection and will have to lay off staff in the coming days.
“This is catastrophic for businesses and jobs,” said UK Hospitality chief executive Kate Nicholls.
“The government has effectively shut the hospitality industry without any support, and this announcement will lead to thousands of businesses closing their doors for good, and hundreds of thousands of job losses.”