Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Accepted
Department fails to ascertain full extent of Bounce Back Loan data held by lenders.
Conclusion
The Department gathers information from the lenders in addition to the (notably limited) requirements in original agreements.25 We had also taken evidence from Natwest, HSBC, Starling Bank and Paragon Bank. The lenders told us that all information requested by the Department has been provided.26 However, the Department has not established the full extent of the information held by lenders in order that this can be investigated further, while the banks told us they hold additional information which has not been requested.27 18 C&AG’s Report, BEIS ARA 2021–22, page 165 19 BEIS, ARA 2021–22, page 18 20 Bounce Back Loan Scheme - British Business Bank (british-business-bank.co.uk) 21 BEIS Annual Report & Accounts 2020–21 (parliament.uk) p8 22 Bounce Back Loan Scheme performance data as at 31 July 2022 - GOV.UK (www.gov.uk) 23 The Bounce Back Loan Scheme: an update (nao.org.uk) p54 24 Q 119 25 Q 119 26 Q 5 27 Q 6 Department for Business, Energy & Industrial Strategy Annual Report and Accounts 2021–22 13 Counter fraud activity on the Bounce Back Loan Scheme
Government Response Summary
The government agrees with the committee and is actively working to improve lender performance and information gathering. This includes developing the lender portal, standardising data definitions, improving analysis, and reviewing the range of data published to ensure a comprehensive understanding of lender-held information.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: July 2023 2.2 The Department for Business and Trade does not recognise the Committee’s description of its predecessor department, the Department for Business, Energy & Industrial Strategy’s, lack of curiosity regarding lender performance. 2.3 Driving positive outcomes in lender behaviour is an important tool to mitigate the risk of avoidable losses to the public purse. The Department for Business and Trade, British Business Bank (BBB) and other government stakeholders work closely with UK Finance and individual lenders to achieve this. 2.4 A Lender Performance Advisory Board provides government’s oversight and strategic advice, considers action to minimise losses and enables cross-government coordination and escalation routes. The Board is chaired by the responsible DBT Director General and brings together BBB’s Chief Executive with senior leaders from HM Treasury, Cabinet Office’s Public Sector Fraud Authority and UK Government Investments. 2.5 Current workstreams across these organisations include: • Improving data collection (and embedding those principles into future schemes from the outset), robustness, and transparency to help understand lender performance and prioritise interventions. Work is continuing to develop the lender portal, standardise data definitions, improve the analysis dashboard and review the range of data published. • Improving policies and procedures to ensure lenders are operating in accordance with scheme requirements and striving to minimise avoidable loss. This includes enhanced guidance for debt write-off; pilots testing the case for additional action when wrongdoing is suspected; and a Counter Fraud Strategy. • Targeted action to address individual lender poor performance and maximise recovery of associated losses. This includes audits on lender processes and performance from initial loan approval through to recoveries; claims and write-offs; negotiations to recover losses where poor performance is identified; and undertaking additional assurance activities. 2.6 DBT will provide a full response to the Committee by the implementation date.