LONDON: British finance minister Rishi Sunak will announce £5 billion ($7 billion) of additional grants to help businesses hit hard by pandemic lockdowns in his budget statement next week. Shops, bars, clubs, hotels, restaurants, gyms and hair salons would be among nearly 700,000 companies eligible for new direct cash grants of up £18,000.
The funding takes the total spent on direct grants to businesses during the crisis to £25 billion.
Encouraged by the rapid roll-out of vaccines, British Prime Minister Boris Johnson has unveiled a route out of lockdown for England. However, some businesses will need to remain shuttered until the summer.
“There’s now light at the end of the tunnel and this £5 billion of extra cash grants will ensure our high streets can open their doors with optimism’’, said Sunak.
Local authorities in England will also get an extra £425 million to distribute grants to businesses not eligible for the restart grants, while the devolved administrations in Scotland, Wales and Northern Ireland will receive £794 million of extra funding.
The government has already racked up more than £280 billion in coronavirus spending and tax cuts, pushing Britain’s borrowing to its highest level since World War Two. — Reuters
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