The government has unveiled a package of financial measures to shore up the economy against the coronavirus impact.
It includes £330bn in loans, £20bn in other aid, a business rates holiday, and grants for retailers and pubs. Help for airlines is also being considered.
Chancellor Rishi Sunak told a press conference it was an "economic emergency” and no peacetime government had faced such an economic fight before. He also promised that if this package was not enough, he would go further.
RIBA CEO, Alan Vallance, said: “We welcome the Government’s ‘unprecedented package’ of financial support during these unpredictable times, especially the extension of businesses eligible for loans.
“But more will be needed to support SMEs – most architecture practices – who are already feeling the pain of this pandemic. The Government must ease the cash squeeze faced by many practices and their clients, and provide clarity on how it will keep the planning system operating and construction sites open so that projects can progress.
“We are writing to the Chancellor and Secretary of State for Housing to outline the specific support required for architects. The RIBA will do whatever is required to ensure Government provides the support our members need.”
Dame Carolyn Fairbairn, CBI Director-General, acknowledged that the Chancellor had taken substantial steps in unprecedented times.
“(The) massive increase in Government-backed loans, higher cash grants and widened business rates relief for some sectors will help firms protect jobs and businesses,” she said. “All now need to be delivered on the ground with speed and simplicity.
“The Chancellor is right to commit to doing whatever it takes.
“The new financial package provides valuable support to areas facing immediate stress, including hospitality and retail. As next steps, it will be vital to stay ahead of the economic impact, not waiting until firms are on the brink. Wider whole-economy measures like regulatory and tax relief in areas including VAT and National insurance will support a broader range of firms in real need.
“Urgent decisions are also needed on wages. An immediate mechanism is needed to top up wages for firms with no choice but to reduce hours for lower paid staff, so they can keep them employed and get through to the other side.
“It is clear this situation will not stand still, so nor can the economic support. The pace of change is too fast to play catch up.”
British Chambers of Commerce Director General Dr Adam Marshall said businesses will welcome the scale of the Government's latest response, as well as the specific support it is offering to some of the worst-affected parts of our economy.
“These measures could be a lifeline for many businesses across the UK who are now experiencing wholesale disruption as a result of the pandemic,” he added.
“The key to the success of these measures is whether they get cash to businesses on the front line, fast. Companies need practical details, at great speed, for these interventions to have the desired impact, and to reassure firms across the UK.
“Both the Prime Minister and the Chancellor were clear that the Government would do whatever it takes over the coming days to support businesses, their employees, and the economy. Further measures will be needed to help all firms and their employees meet this unprecedented challenge.”
