British Government’s annual budget statement revealed

Chancellor of the Exchequer Rishi Sunak revealed the British Government’s annual budget statement yesterday. BritCham China are pleased to see the Chancellor and the Bank of England delivering necessary stimulus measures to support businesses and the British economy in this difficult period.

Key relief measures for companies and workers include:

• A 0.5 percentage point cut to interest rates to maintain the flow of credit to businesses.
• Deferred tax payments to SMEs and the self-employed, including those in the gig economy.
• Scrapping business rates for firms in the retail, hospitality and leisure sectors.
• Increased infrastructure spending and investment incentives.
• Granting statutory sick pay for self-isolating employees from day one, rather than the usual day four.

These targeted measures will provide much-needed assistance for businesses to overcome the predominant challenge they will face throughout the COVID-19 outbreak – cash flow. SMEs in particular can rely on a substantial safety net and earmarked funding, although the impact of the virus on demand and supply chains will still present them with considerable challenges. From the experience of our member companies in China, efficient and effective support from the government in maintaining access to credit and encouraging consumption is vital to the survival of both large and small companies.

BritCham China continues to support our members in China and maintain channels of communication between government and business. If you have any questions, please contact advocacy@britishchamber.cn.

Click here to view the official budget policy paper.

*Image from FT.com