Many large companies across the UK have seen a huge negative impact on their finances as a result of the coronavirus outbreak.
In the midst of the crisis, the UK government pointed out that it is willing to assist the main British companies which were strongly impacted by the coronavirus outbreak.
The Transport Secretary Grant Shapps, mentioned a financial rescue plan called “Project Birch” when they were conferring the future of the aviation industry in Parliament last week.
The Treasury stated that “last resort” support would be made available if a firm`s failure would “disproportionately harm the UK economy.”
A number of large firms in the UK is seeking government assistance to survive the dramatic economic crisis. Among them is the Jaguar Land Rover, which is negotiating to secure a one billion pound loan.
It was reported that the British`s biggest steel producer, Tata Steel has approached both the Welsh and the UK governments for financial assistance that could run into millions.
The government already came up with initiatives to assist companies weather the pandemic, including loan programmes, deferring of tax payments and the furlough scheme, which grants workers 80 per cent of their income paid by the government.
The Treasury spokesperson said: “We have put in place unprecedented levels of support to help businesses get through this crisis. Beyond that, many firms are getting support from established market mechanisms, such as existing shareholders, bank lending and commercial finance.
“In exceptional circumstances, where a viable company has exhausted all options and its failure would disproportionately harm the economy, we may consider support on a ‘last resort’ basis.
“As the British public would expect, we are putting in place sensible contingency planning and any such support would be on terms that protect the taxpayer.”
The government came up with initiatives to assist companies weather the pandemic, including loan programmes, deferring of tax payments and the furlough scheme, which grants workers 80 per cent of their income paid by the government.