Speaking at an interview inside 10 Downing Street on Tuesday (March 17), Rishi Sunak stated home loan lenders would provide the break.
Government-backed loans worth ₤ 330 billion will be made available to support services through the crisis, he said.
The Chancellor also stated he was extending business rates vacation to all services in the hospitality sector and financing grants of approximately ₤ 25,000 for smaller organisations.
He unveiled the procedures after the Federal government’s primary scientific advisor said around 55,000 people in the UK now have Covid-19, as the NHS relocated to cancel all non-emergency surgical treatment and 71 individuals are now understood to have actually passed away.
Sir Patrick Vallance told MPs it is hoped the death toll can be kept to under 20,000 as he informed of the huge amount of stress the health service will be under from Covid-19.
Mr Sunak said: “This is not a time for ideology and orthodoxy, this is a time to be vibrant, a time for nerve.
“I want to reassure every British resident this Government will provide you all the tools you need to survive this.”
He said the Federal government would “support companies little and big”, and announced an “unmatched bundle of Government-backed and surefire loans to support service to survive this”.
“Today I am providing a preliminary ₤ 330 billion of assurances, equivalent to 15% of our GDP.
“That means any business who needs access to cash to pay their lease, their wages, providers or purchase stock will have the ability to access a Federal government backed loan or credit on appealing terms.
“And if demand is greater than the initial ₤ 330 billion I’m making available today, I will go even more and offer as much capacity as required. I stated whatever it takes, and I meant it.”
Explaining the outbreak as an “emergency”, he included: “Never in peacetime have we faced a financial fight like this one.”
The Prime Minister likewise cautioned that Covid-19 is so “harmful” that without extreme action it will “overwhelm the NHS”, as he alerted that more “extreme measures” might be required to protect lives in the future.
He has sent out a letter to hospitals telling them to prepare for a huge influx of patients requiring ventilation and ordered relocations to cancel non-emergency surgery by April 15 at the latest, along with the discharge of medically healthy individuals to release up beds.
Throughout a hearing of the Health Select Committee, chairman Jeremy Hunt asked Sir Patrick whether the anticipated death rate was one death for every 1,000 cases, which would mean that there are “potentially 55,000 cases” at present.
Sir Patrick stated: “We’ve attempted to get a deal with on that in Sage (Scientific Advisory Group for Emergencies) and if you put all the modelling info together, that’s a sensible ballpark way of looking at it.
“It’s not more accurate than that.”