The UK Government has so far put together quite a restrained sensible set of packages towards the Self Employed, Those on PAYE, Limited Companies and PLC's. The response to the crisis has been met quite measured by the government. The detail to accountants of the schemes from HMRC is quite sketchy to accountants at present and we have yet to get full guidance from our institutes and as always the devil is in the detail. I doubt whether in the long term PSBC will be to badly affected The Treasury is obviously drawing on reserves that have been set aside for a crisis of which we are now currently in.The danger is that we create yet more zombie businesses which only exist to pay back debt and have no space invest and grow
The money is going to get consumed financing irreducible cash burn; just keeping the doors open and plant serviceable so that it can be restarted. It’s not going to fund productivity. It can’t, since the businesses largely closed.
I think support to businesses is to be very focussed. Keep those with high capital investments going and write off much of the debt at the end. But don’t fund businesses where there are low barriers to entry.