Business leaders call for dramatic rise in emergency support – Miles Dean
Miles Dean, Head of International Tax, comments in relation to business leaders urging the government to dramatically ramp up the levels of emergency support available for companies.
“Business leaders have urged the government to dramatically ramp up the levels of emergency support available for companies or risk spiralling job losses across the UK as the coronavirus outbreak escalates.
Sounding the alarm as efforts to control the spread of the disease put Britain on the brink of recession and send stock markets plunging, the Confederation of British Industry told ministers to come up with ambitious plans to provide immediate help to struggling companies…
Trade unions urged the government to consider taking financial stakes in airlines and airports to ensure their survival, as well as subsidies, tax breaks and emergency loans. In a letter to the prime minister, the general secretary of the Unite trade union, Len McCluskey, said: “We urge you to release government funding immediately, so the industry, and the jobs within it, can survive what will effectively be a period of dormancy during the next difficult period.”
Business leaders said the government deserved credit for launching £12bn of emergency funding at last week’s budget, alongside the Bank of England cutting interest rates close to zero to support jobs and growth. However, industry groups and economists warned further action was needed…
The government has said it would back up to £1bn of new lending from the British Business Bank, the state-backed investment bank, to provide loans of up to £1.2m. However, the guaranteed lending is far smaller than an expansion in funding by the German government for its state-backed bank, KfW, to raise its lending firepower from €460bn (£412bn) to €550bn.
Miles Dean, head of international tax at the accountancy firm Andersen Tax UK, said: “This is mass hysteria on a level not known in our life times. If the government’s actions directly lead to businesses being put in jeopardy or failing, then they better turn on the printing presses.””