Recommendation 7

The majority of business support measures have been one-size-fits-all, but some crucial sectors of the economy need more bespoke support. The government’s grants and loans schemes to support businesses through the pandemic have directed large sums of money to affected businesses, with the Department estimating that over one million businesses have benefited. For example, the main government-backed loans schemes have extended over £35 billion of finance to businesses. The largest support measures, such as the furlough scheme and loans schemes, have been broad-based and one-size-fits-all—an approach we have seen before in government’s engagement with businesses on EU Exit preparations. Initially, the Department intentionally created a broad suite of schemes to avoid having to have “high-touch, intense and bespoke engagement” with businesses in difficulty. This makes sense at the pace at which the Government had to work to deliver support. However, some sectors and industries are facing particular threats to their ongoing viability, such as the aviation, aerospace, steel and automotive industries, and government has been slow in providing targeted support to where it is needed for those parts of the economy. Recommendation: The Department and the Treasury should engage with key sectors and industries, such as the aviation sector, to develop bespoke support measures aimed at helping those businesses through the ongoing effects of the pandemic.