[Giangos]

Originally Posted by Harry-57

No UK AD is being propped up by the government. Employees are being supported so that they can keep a roof over their heads and food on their tables without running up massive debt. This is being done via employers, because they have all the payroll details and the admin structure necessary to prevent the government wasting resources by inventing the same wheel.

The UK government is not buying stakes in ADs to keep them afloat. It is giving them tax concessions, same as everybody is getting tax concessions. For business, these concessions are delays. Taxes are still due and will be collected. There will just be more time to pay. This is not unique to COVID-19. It happens for many reasons. This is why HMRC were able to roll it out instantly. It's a system they already use selectively. Now it's being used universally. For the time being.

Local councils are also waiving business rates, so that when sanctions start to be eased, there will actually be businesses in good enough shape to trade. This is not a COVID-19 innovation. Local councils modulate and waive business rates all the time, in the interests of the local economy. Local councils are not the government.

Perfect summary.


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