Recommendations & Conclusions
4 items
10
Conclusion
Forty-Fifth Report - Department for Bus…
Acknowledged
The Bounce Back Loan Scheme (BBLS) is the largest of the Covid-19 business support loan schemes, with 1.6 million loans approved, totalling £47.4 billion.19 BBLS gave the lender a full (100%) government-backed guarantee against the outstanding balance of the facility (both capital and interest).20 The British Business Bank, one of …
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The Bounce Back Loan Scheme (BBLS) is the largest of the Covid-19 business support loan schemes, with 1.6 million loans approved, totalling £47.4 billion.19 BBLS gave the lender a full (100%) government-backed guarantee against the outstanding balance of the facility (both capital and interest).20 The British Business Bank, one of the Department’s partner organisations, was responsible for delivering the business support loan schemes, including the BBLS. We acknowledged in our previous report that the Department acted at speed, but left the taxpayer at risk of large losses due to fraud and error. In order to roll the scheme out quickly, agreements allowed lenders to follow their own ‘business as usual’ procedures for monitoring, chasing payment, and identifying fraud for government backed loans. The Department included limited requirements for lenders to collect and share data.21
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Government response AI summary
The government acknowledges the Department provided more than £38 billion for the Bounce Back Loans Scheme.
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HM Treasury
13
Conclusion
Forty-Fifth Report - Department for Bus…
Acknowledged
The inadequacy of the Department’s initial fraud response on the Bounce Back Loan Scheme has been well documented, through our previous report28, and the most recent NAO report on this topic.29 This included the lack of initial liaison with the Cabinet Office, and the lack of an appropriate in-house counter …
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The inadequacy of the Department’s initial fraud response on the Bounce Back Loan Scheme has been well documented, through our previous report28, and the most recent NAO report on this topic.29 This included the lack of initial liaison with the Cabinet Office, and the lack of an appropriate in-house counter fraud function.
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Government response AI summary
The government agrees with the Committee's recommendation and highlights the development of a Bounce Back Loan Scheme (BBLS) Counter Fraud strategy, quarterly data publications on COVID-19 debt schemes, and a series of pilots to test the case for additional recovery activities.
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HM Treasury
14
Conclusion
Forty-Fifth Report - Department for Bus…
Acknowledged
The Department has made progress in its fraud response. The Fraud Risk Assessment has been updated, although this identified additional fraud risks which were not considered at the point the scheme was launched.30 Notably, the Department told us about the improvements which have been made to the ongoing Recovery Loan …
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The Department has made progress in its fraud response. The Fraud Risk Assessment has been updated, although this identified additional fraud risks which were not considered at the point the scheme was launched.30 Notably, the Department told us about the improvements which have been made to the ongoing Recovery Loan Scheme as a result of learning from the Bounce Back Loan Scheme, such as permissions for sharing data, data systems and governance, and bulk objections for dissolving companies with an outstanding loan.31
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Government response AI summary
The government agrees with the Committee's recommendation and highlights the development of a Bounce Back Loan Scheme (BBLS) Counter Fraud strategy, quarterly data publications on COVID-19 debt schemes, and a series of pilots to test the case for additional recovery activities.
Read full response →
HM Treasury
17
Conclusion
Forty-Fifth Report - Department for Bus…
Acknowledged
The Department is responsible for government’s business support grant schemes which have has provided local authorities with £25 billion of COVID-19 grant funding to allocate to eligible businesses since March 2020. Furthermore, the Department provided more than £38 billion for the Bounce Back Loans Scheme, operated by the British Business …
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The Department is responsible for government’s business support grant schemes which have has provided local authorities with £25 billion of COVID-19 grant funding to allocate to eligible businesses since March 2020. Furthermore, the Department provided more than £38 billion for the Bounce Back Loans Scheme, operated by the British Business Bank through commercial lenders, since May 2020.35
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Government response AI summary
The government acknowledges the Department's responsibility for business support grant schemes and the Bounce Back Loans Scheme.
Read full response →
HM Treasury