This interim update, published today, 8 July 2020, from the Recapitalisation Group, chaired by TheCityUK Leadership Council Chairman, covers early-stage thinking on how the private sector can support UK SMEs to manage unsustainable debt built up during the Covid-19 pandemic.
The report sets out the scope of the challenge, considers the sectors most likely to need support, explores how private sector capital could be mobilised and what gaps could remain for the public sector. It also discusses key challenges for any proposed solutions to ensure they work for business right across the UK.
Given the huge and complicated challenge, no specific options have as yet been settled upon, but it is clear already that there won’t be a one-size-fits-all solution. However, the interim update sets out potential options alongside the critical policy and regulatory questions which need to be considered to make them viable. Their success will also be reliant on identifying the right delivery mechanisms.
The Recapitalisation Group will continue to consult widely with key stakeholders to help develop the most viable solutions and delivery mechanisms. As always, Beavis Morgan will continue to keep you updated on progress, with the final recommendations planned for release later this month.