UK’s economic rescue package

Mar 20, 2020

In a further move to aid the economy, Chancellor Rishi Sunak has announced the Government’s economic rescue package amidst the ongoing Coronavirus crisis.  This follows the Prime Minister’s announcement that from tonight, all bars, pubs, restaurants, gyms, cinemas, night clubs and leisure centres are to close their doors.

Here is a summary of key points announced today:

Coronavirus job retention scheme
All businesses will be eligible to contact HMRC to apply for a grant for 80% of wages for employees who are not working, up to a maximum of £2,500 a month.  This will be backdated to 1 March and will be open initially for 3 months, with extensions promised if necessary. Employers can of course top this up further if they choose to.  Rishi Sunak said that there will be ‘no limit’ on the scheme.

 Loans for businesses will be available from Monday
The Chancellor announced that the coronavirus business interruption scheme will now be interest free for 12 months, rather than 6 months as previously planned.  It was advised that these would be available from Monday.

VAT breaks for business
In order to provide further cash flow support, the Chancellor said that he will defer the next quarter of VAT payments until the end of June.

Universal Credit allowance to be raised
The Universal Credit standard allowance is to be raised by £1,000 a years for the next 12 months.  The working tax credit basic element is also to be raised by the same amount.

Support for self-employed
Self-employed workers will be able to access Universal Credit at a rate equivalent to statutory sick pay for employees.

Business rates abolished for worst affected sectors
Business rates are to be abolished altogether for businesses in retail, hospitality and leisure sectors.

Support for private renters
£1bn of support for renters will be provided by “increasing the generosity” of housing benefit and Universal Credit to cover “at least 30% of market rents”

Further guidance
The Chancellor advised that further guidance and information will be published in the coming days.  This is expected to include guidance as to how any salary grants will be calculated for zero hour workers.  As always, we will endeavour to update you as soon as this information is released.

 This reflects the law at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought as appropriate in relation to a particular matter.

By Alistair McArthur

Partner & Head of Employment 


Latest Articles & Legal Insights

Autumn Budget 2021 – key points for employers

Autumn Budget 2021 – key points for employers

From an employment law perspective, there are several aspects that will impact both individuals and businesses, including changes to the national minimum wage and various changes to taxes.

Redundancy Selection & Appeals

Redundancy Selection & Appeals

In a recent employment case, the court considered whether the absence of an appeal contributed to making a redundancy dismissal unfair.

Contact Us

Sign up

Enter your email address for legal updates on Employment & Immigration Law.

Please see our privacy policy regarding use of your data.

Top read insights in 2019

Contract Law

Material Breach of Contract

What is a ‘material’ breach of contract by a party to a commercial contract? This is a critical issue regularly considered by the courts. What constitutes a material breach and what are the remedies?

Property Law

Purchasing Land – Option Agreements

A developer and a landowner can enter into an Option Agreement. What are the strategies that can be employed by both landowners and developers to assist in such land deals?

Divorce and Family Law

What are the Tax Implications of a Civil Partnership?

Is there a significant tax saving to be made by a couple who are married or in a civil partnership that cohabitating couples simply don’t qualify for?  

Land & Property Dispute

Restrictive Covenants – The Price of Modification

Having identified that your land is burdened by a restrictive covenant and for the purposes of this article the covenant in question will be that only one residential building can be erected on the land. What do you do next?

Wills, Trusts and Probate

Is my Will applicable to my Spanish property?

You must be careful when relying on an English Will in relation to your Spanish property.

Award winning legal advice

We are solicitors in Camberley, Wokingham and London. In 2019, Herrington Carmichael won ‘Property Law Firm of the Year’ at the Thames Valley Business Magazines Property Awards, ‘Best Medium Sized Business’ at the Surrey Heath Business Awards and we were named IR Global’s ‘Member of the Year’. We are ranked as a Leading Firm 2020 by Legal 500 and Alistair McArthur is ranked in Chambers 2020.


60 St Martins Lane, Covent Garden, London, WC2N 4JS 

+44 (0) 203 755 0557


Building 9, Riverside Way, Watchmoor Park, Camberley, Surrey. GU15 3YL. 

+44 (0)1276 686 222


27 Broad Street, Wokingham, Berkshire. RG40 1AU.

+44 (0)118 977 4045


© 2020 Herrington Carmichael LLP. Registered in England and Wales company number OC322293.

Herrington Carmichael LLP is authorised and regulated by the Solicitors Regulation Authority.

Privacy   |   Terms and Conditions   |   Cookies   |   Client Feedback