Covid-19: Business Interruption Insurance

Baroness Warsi Excerpts

Tuesday 17th March 2020 Lords Chamber

[Baroness Barran]

To be clear—the noble Lord will appreciate this—the discussions are across many industries, and this industry is critical. There is something about stitching those different conversations together in terms of the overall package. On the approach, we are trying to sequence the priority issues, of which cash flow seems to be perhaps the most pressing in the short term, but I do not want to—and cannot—anticipate exactly what my right honourable friend the Chancellor will say this evening.

[Baroness Warsi (Con)]

My Lords, I declare an interest as a director and shareholder of a number of businesses, which are set out in the register. My noble friend will be aware of the Chancellor’s announcement last week of the business interruption loan guarantee, an essential announcement which could be the difference between a business surviving or going under in the current crisis. Having spoken to a number of banks about how it will play out, the clear indication is that they do not have guidance from the Treasury about what this package will look like. We are now nearly a week on from that announcement. As noble Lords will appreciate, businesses are looking to stabilise their finances now to ensure that they keep people employed. Does my noble friend have any idea of what guidance has been given, when it was given and when businesses will hear from banks about the package of measures that could be put in place to stabilise them?

[Baroness Barran]

My noble friend makes a very important point. A new coronavirus business interruption loan scheme, which is being delivered by the British Business Bank, will launch in a matter of weeks—I cannot give a more precise answer than that—to support businesses to access bank lending and overdrafts. In addition, all businesses and self-employed people who are in financial distress in relation to their outstanding tax liabilities may be eligible to receive support with their tax affairs through the HMRC’s time-to-pay service.