Useful summary of COVID-19 Government supports for business

As a part of their Expenditure Analysis Series, the Parliamentary Budget Office (“PBO”) have released their COVID-19 Government Supports for Business summary (PBO publication 36 of 2020).

In the paper, they mainly analyse:

  • The broad range of supports announced since 8 April 2020
  • How these supports will function makes analysis challenging, particularly when determining both the direct and the potential cost to the Exchequer
  • Categorisation of schemes, as Grant aid Schemes, Loans/Guarantee Schemes or Forgone income. This categorisation is based on whether they relate to supports which incur spending, create contingent liabilities, or result in forgone income
  • Indirect fiscal measures, such as loan guarantees, state aid and Government co-investments

The paper also states that while the direct impact of the schemes on the Exchequer is negative, the focus should be on the potential benefits generated by them. These schemes are intended to enable enterprises to survive through the challenges posed by the pandemic, thereby securing jobs and protecting the economy.

You can read the full paper here: COVID-19 Government Supports for Business