Covid continues to pose challenges for households and businesses
Covid continues to put a big strain on UK businesses’ earnings, and is threatening the livelihoods of many people. Vaccines should help the UK economy recover rapidly later this year.
Since the start of the pandemic, businesses have raised substantial funds from banks and financial markets to weather the economic disruption. With the support of government guarantees, they have borrowed nearly £90bn in 2020, compared to around £20bn in 2019.
Businesses will need further support in the months ahead even as the UK economy recovers.
Our job is to make sure the financial system functions effectively so that banks and financial markets can continue to support households and businesses in the UK in good times and in bad.