Available for non-essential retail first, followed by hospitality, leisure and self-care, the scheme will be worth £5 billion, with grants up to £18,000 for some businesses.
Additionally, a recovery loan scheme for businesses was announced as the existing Bounce Back Loans and CBILS schemes come to an end.
Available until the end of 2021, the recovery loans will range from £25,000 to £10 million, with the Government providing an 80% guarantee for lenders.
The 100% business rate holiday will continue until the end of June, and will be discounted by up to two-thirds until the end of the year - a move Sunak describes as a £6 billion tax cut for businesses.
Jason Oakley, CEO of Recognise Bank, Britain’s newest SME Bank, said:
“This is great news for firms that have already weathered a tough 12 months under COVID-19 restrictions. One in four small businesses wanted the Chancellor to extend the furlough scheme in today’s Budget, while nearly half of hospitality firms said they wanted the reduced 5% VAT rate to continue.
“Britain’s growing businesses are a tough and confident bunch, and the bosses I talk to say they are looking forward to things opening up in the spring and getting back to business. But many have been hit hard by restrictions and lockdown, with almost half of all small hospitality companies telling us they wanted the furlough scheme to continue beyond the spring.
“This news will help them over the final few months until they can start trading fully again and help the UK economy back on the road to recovery.”
