Government working on large business bailout plan
Key Contact: Christian Farrow
Author: Chris Doherty
The Chancellor of the Exchequer Rishi Sunak is developing a bailout package to protect key British firms from going bust due to the COVID-19 outbreak. The so-called “Project Birch” will be targeted towards “viable businesses which have exhausted all options” whose collapse would disproportionally harm the British economy. Aviation, aerospace and steel firms are among those expected to receive support through the bailout plan.
Bailout packages will be tailored on an individual basis. The exact form of the support has not yet been confirmed.
Support for voluntary, community and social enterprise organisations
The Government has announced a £750 million funding package to support voluntary, community and social enterprise (VCSE) organisations who provide services as part of the country’s response to the COVID-19 pandemic. The funding allocation will be as follows:
- £360 million from individual government
departments to charities in England based on service need. £200 million of this
will be allocated to directly support hospices.
- £310 million for smaller, local VCSEs working with vulnerable people in England, including £200 million Coronavirus Community Support Fund. This will be distributed by the National Lottery Community Fund.
- £60 million in Wales, Scotland and Northern Ireland to support frontline charities helping vulnerable people affected by COVID-19.
- £150 million from dormant bank and building society accounts to support charities, social enterprises and individuals.
A full list of the support funds available, including details on how to apply for each, can be found here.
Coronavirus Large Business Interruption Loan borrowing limit increased
From today, the borrowing limit for the Coronavirus Large Business Interruption Loan Scheme (CLBILS) will increase from £50 million to £200 million.
For more information on any of the points raised, please contact our corporate team.