This final report of TheCityUK Recapitalisation Group (RCG), ‘Supporting economic recovery: recapitalising businesses post Covid-19’, highlights the number of jobs and small and medium-sized businesses (SMEs) at risk if urgent action isn’t taken to tackle the projected £35bn of unsustainable debt that could result from Covid-19 loans.
The report sets out a series of far-reaching options for converting, restructuring and repaying this debt to help hundreds of thousands of SMEs get back on their feet, save millions of jobs, protect billions of pounds of taxpayer money, and help power Britain’s economic recovery and future growth.
With our analysis showing that some sectors may face difficulty as early as autumn this year, taking action now is vital to help businesses get back onto a stable footing.
The RCG’s proposals are the result of intensive work by over 200 financial experts from across 50 financial and related professional services firms, led by TheCityUK Leadership Council Chairman Sir Adrian Montague and overseen by EY. The report was compiled in consultation with HM Treasury, the Bank of England and the Financial Conduct Authority, as well as business trade associations representing a wide spectrum of businesses sectors and sizes.