Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to support retailers facing financial difficulties as a result of the covid-19 outbreak to uphold their contractual obligations to their manufacturers and suppliers.

My Rt. Hon. Friend Mr Chancellor of the Exchequer has announced a host of measures to help businesses uphold their contractual obligations to manufacturers and suppliers, with £330 billion worth of government backed and guaranteed loans including:

A Coronavirus Business Interruption Loan Scheme (CBILS) which enables SMEs with a turnover of up to £45 million access vital financial support. The Chancellor has extended CBILS so that all viable businesses affected by COVID-19, and not just those unable to secure regular commercial financing, will now be eligible should they need finance to keep operating during this difficult time.

A Coronavirus Large Business Interruption Loan Scheme (CLBILS) providing finance to mid-sized and larger UK businesses with a group turnover of more than £45 million. We have increased the maximum amount available through CLBILS to a borrower and its group from £50 million to £200 million.

A Bounce Back Loans Scheme which provides loans of up to £50,000 to benefit small businesses with a 100% government-backed guarantee for lenders.

Additionally we have introduced temporary changes to VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow. UK VAT registered business have the option to defer payments without interest or penalties. Businesses must pay the VAT due on or before 31 March 2021.

On 4 June, we announced that the Trade Credit Insurance market will receive up to £10 billion of government guarantees. The guarantees will support supply chains and help businesses to trade with confidence, safe in the knowledge that they will be protected if a customer defaults or delays on payment.