Asked by: Luke Charters (Labour - York Outer)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to support small businesses in York Outer constituency.
Answered by Gareth Thomas - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government is investing £540 million over 30 years in the York and North Yorkshire Mayoral Combined Authority’s local economic priorities, including business support. The UK Shared Prosperity Fund is also providing support to York businesses.
For small businesses across the country, we will deliver on commitments to boost exports, improve access to finance, stamp out late payment practices and open up competition for public procurement contracts. The department also provides extensive support through Help to Grow Management, the Business Support Service and network of Growth Hubs.
Asked by: Luke Charters (Labour - York Outer)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what recent estimate his Department has made of the level of credit losses arising from fraudulent loans provided through the (a) Bounce Back Loans Scheme and (b) Coronavirus Business Interruption Loan Scheme.
Answered by Gareth Thomas - Parliamentary Under Secretary of State (Department for Business and Trade)
As at March 2024, £1.51 billion has been paid out on the government guarantee on BBLS loans where there was lender reported suspected fraud, and £19.8 million has been paid out on the government guarantee on CBILS loans where there was lender reported suspected fraud.
We are committed to reducing loss to the taxpayer and continue to work across Government, law enforcement and commercial lenders to address fraud in relation to the Covid debt schemes.
Lender recovery activity is monitored via the British Business Bank (BBB) which includes data analytics, review of facilities under the Guarantee Agreement, and an ongoing assurance programme. If lenders have not fulfilled their obligations under the scheme guarantee, they would be unable to claim under the guarantee and any loss would therefore sit with the lender. The National Investigation Service (NATIS) is a secondary line of defence in recovering taxpayers’ money and investigates the most egregious reports of fraudulent abuse within the BBLS. Other recovery efforts include the work of the Insolvency Service and work with lenders to pilot greater use of third-party debt collection specialists, compulsory liquidation for recovery and enforcement in fraud cases.