Saudi Press

Saudi Arabia and the world
Thursday, Jul 10, 2025

The UK government draws up plan to rescue key firms

The UK government has indicated it is prepared to rescue large British companies severely affected by the coronavirus crisis.

The Treasury said "last resort" support could be made available if a firm's failure would "disproportionately harm the UK economy".

The move follows indications that a number of big firms are seeking government help to survive the crisis.

These include Jaguar Land Rover, which is in talks to secure a £1bn loan.

The government has already put in place various initiatives to help companies weather the pandemic, including loan programmes, deferring of tax payments and the furlough scheme, which allows workers to receive 80% of their salary paid by the government.

According to latest figures, eight million workers are covered by the furlough scheme which has been extended until the end of October. But from August, businesses will be expected to meet part of the cost of the scheme.

Concern is growing that some big firms are still in difficulties even after making use of these options.


'Tsunami of job losses'

The bailout plan, named "Project Birch", was mentioned by Transport Secretary Grant Shapps in Parliament last week when discussing the future of the aviation industry.

It could involve the state taking stakes in companies, although extending existing loans would be preferable.

Unite the union welcomed the plan but urged the government to act quickly.

"There is no more time to lose if we are to prevent a tsunami of job losses from sweeping through communities this summer," said Unite assistant general secretary for manufacturing, Steve Turner.

"We still need to ensure that proposed changes to the job retention scheme do not undermine a plan to recover and rebuild and that workers continue to get their wages."

A Treasury spokeswoman said: "We have put in place unprecedented levels of support to help businesses get through this crisis.

"Beyond that, many firms are getting support from established market mechanisms, such as existing shareholders, bank lending and commercial finance.

"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.

"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."

The BBC understands the Treasury would have to notify Parliament of any spend incurred, and although companies might seek financial assistance, this does not mean such support will be given.


Companies in trouble

On Saturday, Sky News reported that Tata Steel, Britain's biggest steel producer, had approached both the Welsh and UK governments for financial aid that could run into hundreds of millions.

Earlier this week, Welsh MP Stephen Kinnock told parliament that Tata Steel, which owns the steelworks in Port Talbot, needs around £500m in order to survive the pandemic.

And according to the Financial Times, aviation industry bosses have been asking the government for a "long-term investment facility" that would help to support supply chains.

Jim O'Neill, former Treasury minister and ex-chief economist at Goldman Sachs, told the newspaper he had been in discussion with government officials about creating a public sector-owned funding body to take stakes in firms that would be "inherently stable" in times of normal economic activity.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
×