Recommendation 18

The government has instituted a range of support measures for businesses to help them cope with the extensive economic disruption caused by COVID-19. These include payments to businesses for furloughed employees, government-backed loan schemes, cash grants and additional reliefs.45 The Department estimates that over one million businesses have benefited from the schemes. For instance, the loan schemes run by the British Business Bank have extended more than £35 billion of finance to businesses.46 In total, the cost of business support measures in place at May 2020 is expected to be at least £82 billion. In addition, the loss of receipts from measures such as deferring VAT payments is expected to total £3.2 billion.47