UK Chancellor of the Exchequer Rishi Sunak, who had pledged to do "whatever it takes" to save people's jobs and livelihoods through the coronavirus pandemic, on Friday unveiled an "unprecedented" wage boost to his COVID-19 rescue package.
Britain's Indian-origin finance minister announced that the UK government would pay 80 per cent of wages for employees not working, up to 2,500 pounds a month.
"Today I can announce for the first time in our history the government is going to step in and pay people's wages," he said, addressing the daily Downing Street briefing alongside British Prime Minister Boris Johnson.
"We said we would stand together with the British people and we meant it," he said.
A coronavirus job retention scheme will mean companies will be able to contact the tax department, HMRC, for a grant to provide most of the wages for people who are not working but are kept on payrolls.
And, the Coronavirus Business Interruption Scheme will be interest free for 12 months, rather than six months as initially planned, with loans available from Monday.
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In order to provide "further cashflow support", the Chancellor said he will defer the next quarter of VAT payments.
He described the government's planned economic response as the most "comprehensive" in the world.
He said: "I know that people are worried about losing their jobs, about not being able to pay the rent or mortgage, about not having enough set by for food and bills. I know that some people in the last few days have already lost their jobs. You will not face this alone. But getting through this will require a collective national effort."
Speaking directly to businesses, he added: "The government is doing its best to stand behind you and I'm asking you to do your best to stand behind our workers. When this is over, and it will be over, and remember the many small acts of kindness done by us and to us. We want to look back on this time and remember how we thought first of others and acted with decency."
"The Chancellor's commitment to go further, at speed is right together we must deliver it within days, not weeks."
Mike Cherry, National Chairman of the Federation of Small Businesses, added: "It's vital that money is available on the front-line now. We have seen an escalation in the health response; now it is right for there to be an escalation in the economic response."
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