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Coronavirus support measures help every region and nation in the UK

Friday August 7th, 2020

New data published today (Friday Aug 7 2020) reveals how businesses across every corner of the UK continue to be supported through government-backed coronavirus loan schemes.Rushi Sunak

  • new figures show government economic support is reaching every corner of the UK
  • businesses across the entire UK have received government-backed loans during outbreak – with more than 130,000 firms in devolved nations receiving £4.7 billion
  • data also shows that nearly 900,000 firms in England have benefitted from over £10 billion in business grants

Figures released by the Treasury show that more than 130,000 firms in Scotland, Northern Ireland and Wales have benefitted from £4.7 billion of coronavirus support through the government’s Bounce Back Loan and Coronavirus Business Interruption Loan Scheme (CBILS). This includes:

  • loans and support worth more than £2.3 billion have been given to more than 65,000 firms in Scotland since the outbreak
  • around 41,000 businesses in Wales have received more than £1.4 billion in finance
  • and more than 25,000 businesses in Northern Ireland have received over £1 billion

The figures also show that businesses up and down England have also benefitted from more than £10 billion in business grants, with equivalent funding being made available to the nations through the Barnett formula.

  • more than 102,000 business properties in Yorkshire and the Humber received £1.1 billion in grants since the pandemic
  • alongside 119,000 grants made in the South West, to the value of £1.3 billion
  • and 131,000 business properties in the North West receiving over £1.5 billion in support

Loan schemes, grants and business rates holidays have supported businesses across all sectors. But the retail, construction and hospitality sectors, including hotels and restaurants, have benefitted the most.

17% of loans went to the construction sector, and all retail, hospitality, and leisure businesses benefitted from a 100% business rates holiday – demonstrating how government support helped those businesses that were impacted hardest by the pandemic.

As well as loan schemes, grants and businesses rates holiday, around a third of employees in every region benefitted from the furlough scheme, in addition to support through the self-employed income support scheme, as the government moved quickly to support businesses across the whole country to protect jobs. This is part of a package of over £50 billion in loans, £11 billion in grants, and 9.5 million people furloughed.

The Chancellor set out his Plan for Jobs last month, which will support jobs with the Job Retention Bonus to help businesses keep furloughed workers, and expand Worksearch Support including a Flexible Support Fund and a £2 billion Kickstart scheme to subsidise jobs for young people

The government is also creating jobs in the construction and housing sectors through funding to decarbonise public sector buildings, and protecting jobs with VAT cuts for hospitality and tourism, as well as the Eat Out to Help Out discount scheme. These schemes are union-wide, and support key industries across the whole of the UK.

This comes in addition to the government’s recent announcement that the devolved administrations in Scotland, Northern Ireland and Wales will receive a minimum of £3.6 billion in additional funding this year, on top of the £8.9billion confirmed since March to support the coronavirus recovery.

Ahead of a visit to Scotland to see the impact of the government support schemes and meet people who have benefitted, the Chancellor of the Exchequer, Rishi Sunak, said:

“I recently set out the government’s next steps towards economic recovery and securing the UK’s long-term prosperity in our Plan for Jobs.

As we embark on this next phase, the latest figures demonstrate that we are continuing to support jobs, incomes, and businesses across every corner of the UK.”

 

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