Speaking in a debate on employment support during the coronavirus crisis, Peter Aldous highlights difficulties businesses are experience in accessing Government loans and calls on the Government to support payroll costs more directly.
The feedback I am receiving is that many businesses will have difficulty in accessing Government loans because of restrictions they have in granting additional security to a new lender. With that in mind, may I urge the Government to support payroll costs far more directly, as other European Governments are doing? This is the way to avoid large-scale redundancies.
My hon. Friend refers to the loans. I was meeting the banks last night to make sure that these loans are accessible. The criteria for issuing them are based on the solvency of businesses prior to this crisis arising. It is absolutely clear that the banks see they have a massive responsibility to make this scheme work. That term sheet is being finalised; it may already have been finalised this morning. The banks are now working on making sure that that will be available through all their call centres and branches. He makes the suggestion of a supplementary measure, and we are looking at these things very carefully.
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