Having already committed to £330bn of funding, equivalent to 2.3% of GDP, to help businesses get through the current coronavirus lockdown, the UK Treasury may be making contingency plans to inject vital funds in companies most threatened by the crisis, according to The Telegraph.

The focus would be on ailing but strategically significant sectors of the economy such as airlines with grounded fleets and specialist manufacturers struggling from supply chain delays.

It would be the first time that emergency measures have been used since the global financial crisis in 2008 where banks were recapitalised.

The idea of using taxpayers’ money to get funds to the so-called ‘stranded middle’ of UK firms was raised last week by the CBI’s chief economist, Rain Newton-Smith.

The plan would involve providing short-term convertible loans, which convert into equity if they are not repaid within six months. The Treasury may enforce dividend freezes like it did in the banking bailout until taxpayers earn their money back.

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