The Economy

Kevin Hollinrake Excerpts

Monday 27th April 2020 Commons Chamber

[Rishi Sunak]

If I understood the hon. Lady’s question correctly, I can assure her that the coronavirus business interruption loans apply to meeting asset-related costs already, so it is perfectly possible to use that scheme for a finance arrangement like that. But if that was not her specific question, I would be happy to answer in writing.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

May I first declare my business interests, and, from a business perspective, thank the Chancellor for the excellent work that he is doing—a view shared widely across the business community? On the business interruption loans, I welcome the removal in the new micro loan scheme of the forward viability test, which is one of the complexities that slows down the current scheme. Will he commit to looking at removing that from the main scheme as well, which would help to get money out of the door much more quickly?

[Rishi Sunak]

My hon. Friend has been not, I would say, a thorn in my side but a doughty champion of those who would like to have access to these loans. He has made this point forcefully and repeatedly to the Economic Secretary and to me. I am pleased to tell my hon. Friend that we have been working with the banks over the past week or so and we have been able to make, on his recommendation, several changes to the scheme, including from the regulatory side through the Prudential Regulation Authority and the Financial Conduct Authority, to give banks the comfort they need, as well as reassurances from the Government. A statement will be issued shortly by UK Finance confirming that banks will not require from businesses the provision of forward-looking financial information or business plans. I hope that that gives him the reassurance he needs. It will give comfort to many businesses. I congratulate him on making this point so forcefully and effectively over the past week or two.