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>29 October 2020

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The government must safeguard businesses throughout the coronavirus crisis

Amidst the coronavirus crisis, the government must safeguard businesses so the UK economy can survive. While governmental relief programmes such as furlough schemes have been helpful to many businesses, other measures must be introduced to sustain businesses for the long-term. For example, following their example, other countries have implemented debt restructuring plans or loan guarantees to businesses, allowing them to overcome the difficulties of this period. This would allow businesses to renegotiate loan terms or receive state aid. Furthermore, regulations should be developed to allow businesses to operate safely, protecting the health of employees and customers. Relaxing competition rules to allow companies to form partnerships or temporary monopolies would also assist businesses running into liquidity problems prevent them from going bankrupt. In addition, the government could introduce measures to make the insolvency process less burdensome, including general debt relief and more efficient restructuring plans. Finally, it is essential to invest in essential sectors in order to maintain the productivity of businesses and prevent job loses. This includes support for specific industries, such as hospitality, as well as taking measures to address the digital divide that has arisen as a result of the pandemic. In doing so, businesses will have the support they need to continue operating during this crisis.