Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether eligibility for the Bounce Back Loan Scheme is dependent on an applicant holding a bank account with a bank that is accredited under that scheme.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government launched the Bounce Back Loan Scheme (BBLS) on 4 May 2020 to ensure that the smallest businesses could access loans from £2,000 up to £50,000, capped at 25% of turnover in a matter of just days. As of 21 March, over 1.5 million UK businesses have received Bounce Back Loans worth over £46 billion. Please note the scheme has now closed to new applications.
Whilst the scheme was open, there was no requirement under the scheme rules for borrowers to hold a bank account with an accredited lender to be eligible for a facility. However, decisions on what products were offered to individual businesses were fully delegated to lenders.
Under the scheme rules applicants were required to make a number of declarations to self-certify their eligibility, for example, that they will only use funds solely for the economic benefit of their business. Accredited lenders also carried out anti-fraud, know-your-customer and anti-money laundering checks as part of the application process.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with banks in Northern Ireland on the rollout of 95 per cent loan to value mortgages announced in Budget 2021.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
First time buyers and homemovers will benefit from a new mortgage guarantee scheme, which will increase the availability of 95% loan to value (LTV) mortgage products across the UK, helping borrowers with small deposits into home ownership.
The scheme is open to any regulated residential mortgage lender in the UK, including lenders based in Northern Ireland. The Government is open to discussions with any lender interested in joining the scheme.
The 2013 Help to Buy: Mortgage guarantee scheme supported 2,660 mortgage completions in Northern Ireland, with the country’s share of mortgage completions under the scheme being higher than its share of overall UK mortgage lending during the same period.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with local authorities in Northern Ireland on his proposed £4.8 billion levelling up fund.
Answered by Kemi Badenoch - President of the Board of Trade
HM Treasury is committed to levelling up the UK and is working closely with the Northern Ireland Office to ensure the Levelling Up Fund benefits all parts of the UK, including Northern Ireland. The Levelling Up Fund will allow UKG to invest directly in communities and level up across the UK. The Levelling Up Fund will be open to all local areas across the UK.
UKG will work directly with local areas across the UK to take a holistic approach to their needs. This will extend the benefits of previous England-only local growth programmes, which the devolved administrations have not replicated in SW&NI (such as the Towns Fund), to all parts of the UK.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how he plans to allocate the proposed £800 million for Northern Ireland, Scotland and Wales as part of his levelling up fund.
Answered by Kemi Badenoch - President of the Board of Trade
The £4 billion Levelling Up Fund announced at the Spending Review is being extended to directly support communities in all regions and nations of the UK. The £4 billion Fund announced at the Spending Review will now be made £4.8 billion to operate UK-wide. The Fund will invest at least £800m in Scotland, Wales and Northern Ireland. The Fund will be allocated competitively and be open to all local areas across the UK to boost growth and spread opportunity. Further details on how the Fund will operate will be published in the prospectus shortly – including who can bid, the types of projects eligible for funding, and the criteria for assessing proposals.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to announce details of how MPs can apply for up to £20 million under his proposed levelling up plan.
Answered by Kemi Badenoch - President of the Board of Trade
The £4 billion Levelling Up Fund announced at the Spending Review is being extended to directly support communities in all regions and nations of the UK. The £4 billion Fund announced at the Spending Review will now be made £4.8 billion to operate UK-wide. The Fund will invest at least £800m in Scotland, Wales and Northern Ireland. The Fund will be allocated competitively and be open to all local areas across the UK to boost growth and spread opportunity. Further details on how the Fund will operate will be published in the prospectus shortly – including who can bid, the types of projects eligible for funding, and the criteria for assessing proposals.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of deferring the first repayments of the Coronavirus Business Interruption Loan Scheme due in April 2021 in light of the ongoing financial pressures on businesses as a result of the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Under the Coronavirus Business Interruption Loan Scheme (CBILS) rules, capital repayments start immediately, unlike the Bounce Back Loan Scheme (BBLS) where no repayments are due from the business during the first 12 months of the facility. As a result, many CBILS borrowers started repaying their facilities from the date they were taken out.
Following the Chancellor’s announcement at the Winter Economy Plan, to help businesses repay their CBILS facilities the Government have amended the CBILS rules to allow lenders to extend loan terms from six to a maximum of ten years where the borrower is in difficulty and where the lender judges that an extension would help their situation. I should be clear that CBILS term extensions will be offered at the discretion of lenders, unlike the “Pay As You Grow” options for Bounce Back loans. Such extensions would therefore be given in line with a lender’s forbearance policies.
Any business concerned about their ability to repay their finance should discuss this with their lender in the first instance. Given loans under CBILS are varied and resemble more traditional commercial lending, CBILS borrowers are more likely to benefit from tailored engagement with their lender if they have concerns about repayments. Lenders have an ongoing relationship with CBILS borrowers and will be best placed to provide support tailored to an individual businesses circumstance.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to defer the first payments of the Coronavirus Business Interruption Loan Scheme, due in April 2021, in response to the financial pressures on businesses resulting from the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Under the Coronavirus Business Interruption Loan Scheme (CBILS) rules, capital repayments start immediately, unlike the Bounce Back Loan Scheme (BBLS) where no repayments are due from the business during the first 12 months of the facility. As a result, many CBILS borrowers started repaying their facilities from the date they were taken out.
Following the Chancellor’s announcement at the Winter Economy Plan, to help businesses repay their CBILS facilities the Government have amended the CBILS rules to allow lenders to extend loan terms from six to a maximum of ten years where the borrower is in difficulty and where the lender judges that an extension would help their situation. I should be clear that CBILS term extensions will be offered at the discretion of lenders, unlike the “Pay As You Grow” options for Bounce Back loans. Such extensions would therefore be given in line with a lender’s forbearance policies.
Any business concerned about their ability to repay their finance should discuss this with their lender in the first instance. Given loans under CBILS are varied and resemble more traditional commercial lending, CBILS borrowers are more likely to benefit from tailored engagement with their lender if they have concerns about repayments. Lenders have an ongoing relationship with CBILS borrowers and will be best placed to provide support tailored to an individual businesses circumstance.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress the UK-EU Joint Committee has made on the VAT Margin scheme for goods moving between Great Britain and Northern Ireland.
Answered by Jesse Norman
The Northern Ireland Protocol frames the approach to VAT on goods, including the second-hand margin scheme, in Northern Ireland. As set out in the Command Paper on the Northern Ireland Protocol in December, the Government is aware of concerns raised about the changes to the second-hand margin scheme on certain specific sectors moving goods from Great Britain to Northern Ireland.
The Government is aiming to minimise disruption for Northern Ireland traders to the extent possible, including through discussions with the European Commission as appropriate.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans his Department has to assist second hand car dealers in Northern Ireland who have been affected by changes to VAT margin after the end of the transition period.
Answered by Jesse Norman
The Northern Ireland Protocol governs the approach to VAT on goods, including the second-hand margin scheme, in Northern Ireland. As is the case for tax policy generally, the Government is keeping this under review.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support the Government is providing to the Northern Ireland Executive to support high streets during the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Throughout the Covid-19 pandemic, the UK Government has supported businesses in Northern Ireland.
To give the Northern Ireland Executive the upfront certainty to plan and deliver their Covid-19 response this year, the UK Government guaranteed they would receive at least £2.8 billion in additional resource funding on top of their Spring Budget 20 funding. Spending Review 2020 is also providing a further £540 million for the Northern Ireland Executive in relation to Covid-19 in 2021-22. It is for the Executive to decide how to use this funding.
This is on top of all the UK-wide schemes that the UK government has introduced this year to support all parts of the UK, including the Coronavirus Job Retention Scheme (CJRS), Self-Employed Income Support Scheme (SEISS) and Coronavirus Business Interruption Loan Scheme (CBILS).