Oral Answers to Questions

John Glen Excerpts

Monday 18th May 2020 Commons Chamber

[Daniel Zeichner (Cambridge) (Lab)]

What recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the effectiveness of the coronavirus business interruption loan scheme.

[The Economic Secretary to the Treasury (John Glen)]

The Treasury is working closely with the Department for Business, Energy and Industrial Strategy to monitor the uptake and effectiveness of the coronavirus business interruption loan scheme. The scheme has already helped thousands of businesses since its launch on 23 March and is continuing to ramp up. As of 10 May, almost 36,000 facilities with a value of over £6 billion have been approved through the CBILS. SMEs now have a choice of over 60 lenders offering finance under CBILS, and further announcements on numbers will happen later this week.

[Daniel Zeichner [V]]

Despite that, the uptake of the coronavirus business interruption loan has been disappointing, leading to the bounce-back loans. Could we have much more accurate reporting on this, much more like the health statistics and perhaps also by region, so we can see what is actually happening?

[John Glen]

We are looking very carefully at the figures and we publish them on a weekly basis. I am having conversations with banks on a regular basis, and we are having a roundtable this week to monitor progress. We will look to make further interventions should that be necessary, but absolutely it is important that the loans get out quickly, as they have been designed to do.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

What recent discussions he has had with Cabinet colleagues on the number of small companies that pay business rates collectively through landlords that have been able to access cash grants through local authorities during the covid-19 outbreak.

[The Economic Secretary to the Treasury (John Glen)]

The Government have recently allocated up to an additional £617 million to local authorities to enable them to give grants to businesses excluded from existing schemes. That will enable many thousands of businesses in the situation described by the hon. Member to receive cash grants.

[Mr Speaker]

We go over to the wonderful county of Lancashire and Cat Smith.

[Cat Smith [V]]

Will the Minister ask local authorities to report on the extent to which landlords are passing on the grants to tenants, because it is not just in Lancaster and Fleetwood that we are seeing widespread evidence that that is not occurring?

[John Glen]

The hon. Lady makes a reasonable point. We are monitoring the effectiveness of all these schemes, and the way that local authorities are using their discretion in giving out those grants, but this is a matter that we will continue to examine carefully.

[Kate Green (Stretford and Urmston) (Lab)]

What assessment he has made of the effect of the covid-19 outbreak on regional economies.