Bounce Back Loans Scheme: Follow-up

In December 2020 the Committee published its first report on the “Bounce Back Loan” Scheme offered to registered - and unregistered - small businesses to help them get through and recover from Government-mandated closures and loss of business revenues during lockdown. At that time the PAC concluded that billions of pounds of taxpayers’ money was … Show more

In December 2020 the Committee published its first report on the “Bounce Back Loan” Scheme offered to registered - and unregistered - small businesses to help them get through and recover from Government-mandated closures and loss of business revenues during lockdown. At that time the PAC concluded that billions of pounds of taxpayers’ money was at risk due to fraud in the 100% guaranteed loans, where even the most basic checks and assurances had been dropped in the name of getting the loans out quickly. The Committee has since reported several times on failures in the Government’s balancing of risk and expedience across many of its Covid support schemes, but the National Audit Office has described the BBLS as “government’s largest and most risky business loan support scheme”. Official calculations and estimates of how much will be lost to fraud and default in the BBLS are ongoing. In this follow up inquiry, the Committee will question senior officials at BEIS and the Treasury on what government is doing to protect public money in relation to the Scheme; how many loans were made by the time the Scheme closed; how many businesses have begun repaying loans; the counter-fraud activity taking place, and the levels of identified fraud; and the latest Scheme estimates of potential fraud and credit losses . If you have evidence on any of these issues, please submit it here by Monday 3rd January 2022 Show less