Economic Update

Stephen Farry Excerpts

Monday 11th January 2021 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right about the importance of cash flow, and he is right to highlight pay as you grow, which means that the 1.3 million businesses that have benefited from bounce back loans will have the opportunity significantly to reduce and extend their repayments for those loans. By extending the repayment term to 10 years from five, we have cut the average monthly payment by almost half from just over £500 to just over £300. Businesses also have the option to move to interest only, which further reduces the payment to around £60 or £70 on a typical loan. That extra cushion will ensure that businesses can save their cash for driving their businesses forward as they reopen after these restrictions.

[Stephen Farry (North Down) (Alliance) [V]]

I acknowledge the scale of the financial support that has been provided by the Chancellor, but almost a year on there is a stubborn refusal to address the needs of those who are excluded often by what are seen as very arbitrary rules. Will the Chancellor confirm that the Treasury has indeed received a number of constructive proposals on how existing schemes can be modified without the risk of fraud? Will he commit to giving those proposals a fair consideration and, where appropriate, to making back payments?