COVID-19 government update Friday March 20: “Unprecedented measures for unprecedented times”

Today’s government press conference saw the announcement of “unprecedented” economic intervention.

Prime Minister Boris Johnson opened the conference by reiterating his confidence in the ability to ‘turn the tide’ of the COVID-19 outbreak within three months, using “medicine, technology and - above all - we’re going to defeat this disease with a huge national effort.”

He went on to say that the government would be “supporting you directly in a way a government has never done before”, but that to do so would require

The Prime Minister then announced that “we are collectively telling cafes, bars, clubs and restaurants tonight as soon as they reasonably can, and not to open tomorrow. To be clear they can continue to provide takeout.”

He confirmed that this would also include social environments such as gyms and leisure centres, cinemas and museums.

Mr Johnson added that the measures would be reviewed on a monthly basis, saying: “I know how difficult this is and how it seems to go against the freedom loving instincts of the British people, and I also know businesses deserve the financial reassurance we are giving” before passing over to Chancellor Rishi Sunak.

The Chancellor began by addressing businesses and workers concerned about paying bills, stressing that “you will not face this alone”.

In what he called “unprecedented measures for unprecedented times”, Mr Sunak confirmed that “the government is going to step in and help to pay people’s wages”.

He unveiled the Coronavirus Job Retention Scheme, which will see the government provide unlimited grants to businesses to pay 80 per cent of staff salaries up to £2500 a month.

The scheme is to be backdated for March 1, open initially for three months with the possibility of extension.

To support businesses, Mr Sunak announced the introduction of a Coronavirus Business Interruption loan scheme, offering unlimited lending interest free for 12 months to SMEs.

Mr Sunak also confirmed “further cashflow support through the tax system” by deferring the next quarter of VAT payments for businesses, worth £30bn.

In addition, the Chancellor stated he would abolish business rates for hospitality and retail as well as provide £25k grants for small business properties.

In terms of the benefits system, Mr Sunak announced the increase of the universal credit and working tax credit limits by £1,000, as well as suspending the minimum income threshold for self-employed workers enabling them to access universal credit.

He also confirmed that the next self assessment payments would be deferred until January 2021, as well as ensuring that local housing benefit allowance will cover at least 30 per cent of market rents.

Lastly, Mr Sunak added that “individual acts of kindness we show each other” will define how this crisis is viewed in history.

“When this is over, and it will be over, we want to look back on this moment and remember the many small acts of kindness done by us, and to us.”