Companies: Coronavirus

Treasury written question – answered on 17th July 2020.

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Photo of Andrew Slaughter Andrew Slaughter Labour, Hammersmith

To ask the Chancellor of the Exchequer, whether the Government plans to take shares in any companies bailed out through Project Birch at the outset; and whether loans are the only option available to companies initially.

Photo of Kemi Badenoch Kemi Badenoch The Exchequer Secretary

The government has always considered providing support to strategically important companies that can reasonably be expected to have a long-term viable future, and whose failure or distress could cause disproportionate harm to the UK economy or society. Companies should also demonstrate they have exhausted all other financing options (including support from existing shareholders and lenders).

Each case will be considered individually, and any support provided will be bespoke to the company’s needs.

Where intervention is deemed to be appropriate, it will be on terms that protect the interests of current and future taxpayers, with existing shareholders and lenders expected to share in the financial burden.

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