UK plans ‘last-resort’ help for virus-hit firms

LONDON: The British government is ready to support coronavirus-ravaged companies whose collapse would harm the economy, the Treasury said on Tuesday, stressing any funds would be given on a “last resort” basis.

The business support plan – dubbed Project Birch – would only apply once a company had exhausted other sources of funding such as existing investors and banks. “In exceptional circumstances, where a viable company has exhausted all options and its failure would disproportionately harm the economy, we may consider support on a ‘last resort’ basis,” a Treasury spokesman said in a statement that gave no financial details.

“As the British public would expect, we are putting in place sensible contingency planning and any such support would be on terms that protect the taxpayer.” Transport Secretary Grant Shapps had already signalled last week that the Treasury was working on possible support for the aviation sector under the Birch process.

British media reported over the weekend that Indian-owned UK-based car manufacturer Jaguar Land Rover was in talks over a £1.0-billion ($1.2 billion, 1.1 billion euros) loan from the government. British airline Virgin Atlantic is also reportedly in talks over potential assistance.