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RISHI SUNAK: I can announce today an unprecedented package of government backed and guaranteed loans to support business to get through this. Today, I am making available an initial GBP 330 billion of guarantees, equivalent to 15% of our GDP. That means any business who needs access to cash to pay their rent, their salaries, suppliers, or purchase stock will be able to access a government backed loan or credit on attractive terms. And if demand is greater than the initial $330 billion pounds I'm making available today, I will go further and provide as much capacity as required.
Some sectors are facing, particularly acute challenges. In the coming days, my colleague, the Secretary of State for Transport, and I will discuss a potential support package, specifically, for airlines and airports. And yesterday, I asked my cabinet colleagues to urgently convene meetings over the coming days with business leaders and representatives in the most affected sectors to identify other specific opportunities to support them and their industries, including possible regulatory forbearance.
As well as access to finance, businesses need support with their cash flow and fixed costs. Following the changed medical advice yesterday, there are concerns about the impact on pubs, clubs, theatres, and other hospitality, leisure, and retail venues. Let me confirm that for those businesses, which do have a policy for insurance that covers pandemics, that the government's action is sufficient and will allow businesses to make an insurance claim against their policy.
I announced last week that for businesses in the retail, hospitality, and leisure sectors with a rateable value of less than GBP 51,000. They will pay no business rates this year.
Today, I can go further and provide those businesses in those sectors with an additional cash grant of up to GBP 25,000 per business to help bridge through this period. Additionally, I am also extending today the business rates holiday to all businesses in those sectors, irrespective of their rateable value. That means every single shop, pub, theatre, music venue, restaurant, and any other business in the retail, hospitality, or leisure sector will pay no business rates whatsoever for 12 months. And if they have a rateable value of less than GBP 51,000, they can also now get a cash grant as well.
Following discussions with the industry today, I can announce that for those in difficulty due to coronavirus, mortgage lenders will now offer a three-month mortgage holiday so that people will not have to pay a penny towards their mortgage costs while they get back on their feet. And in the coming days, I will go much further to support people's financial security. In particular, I will work with trade unions and business groups to urgently develop new forms of employment support to help protect people's jobs and their incomes through this period.
