Trade Credit Insurance to see up to £10bn government guarantee for businesses - TruckingJobs.co.uk

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Monday, 8 June 2020

Trade Credit Insurance to see up to £10bn government guarantee for businesses


It’s good news for hauliers as government announces a £10bn guarantee to support thousands of businesses by protecting against customer defaults or payment delays.

The Trade Credit Reinsurance scheme, which has been agreed following extensive discussions with the insurance sector, will see the vast majority of trade credit insurance coverage maintained across the UK.

Commenting, RHA chief executive, Richard Burnett said: “Today’s announcement follows months of intensive lobbying by the Association on behalf of the entire UK haulage industry. We have been asking government to do more to help operators through the COVID-19 crisis as they gear up to drive economic recovery.”

This week an RHA survey of 600 road haulage operators revealed that the vast majority are still struggling after pandemic lockdown measures have seen volumes collapse.

Sixteen percent of operators claimed they could be insolvent within four weeks, with government furlough payments and bounce back loans only offering a temporary reprieve.

Richard Burnett continued: “The RHA has been lobbying government tirelessly on this issue and today’s news will come as a shot in the arm for thousands of road transport operators.

"If the economy is to get back to its pre-pandemic levels, supply chain confidence is vital and we are pleased that our efforts to achieve this have, quite literally, paid off.”

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