Source · Select Committees · Treasury Committee
Recommendation 13
13
The Treasury should evaluate whether there needs to be a new state body or a...
Conclusion
The Treasury should evaluate whether there needs to be a new state body or a remodelling of the British Business Bank, to provide loans at speed in a crisis if required, and to also play a part in recapitalising businesses including investing strategically in large businesses. (Paragraph 110) Longer term challenges
Government Response
Acknowledged
HM Government
Acknowledged
The British Business Bank (BBB) has also been a key element of the government’s response to the COVID-19 crisis. It has responded swiftly to the economic shock caused by the pandemic and continues to deliver financial support to businesses on an unprecedented scale, alongside other government and Bank of England interventions. The government will consider what lessons can be learnt from this experience in order to inform the next phase of the recovery and beyond. As part of its normal operations the government has also always considered providing support to strategically important companies that can reasonably be expected to have a long-term viable future, and whose failure or distress could cause disproportionate harm to the UK economy or society. Companies must have exhausted all other options before being considered, and any support given is on terms that protect the taxpayer, with existing lenders and shareholders expected to contribute to, and share in, the financial burden. Companies receiving support also need to agree to appropriate conditions, including those relating to tax, supplier payment terms, climate change and corporate governance.