Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the effect of the covid-19 outbreak on levels of business debt in (a) Coventry North East constituency, (b) Coventry, (c) the West Midlands and (d) England.

Across all areas of the country, businesses have taken advantage of the Government’s covid loan schemes to keep them going through the covid-19 outbreak. This has naturally led to an increase in business debt whilst safeguarding livelihoods.

The figures below are according to UK finance data by postcode[1] which often do not align perfectly with administrative boundaries. These figures are the latest data for outstanding loans to small and medium enterprises only, up to Q3 2020:

• In Coventry North East, lending to SMEs was 54% higher in Q2 2020 (£395.1m), and 67% higher in Q3 2020 (£429.6m), when compared to the average since 2016 (£256.8m).

• In Coventry, lending to SMEs was 50% higher in Q2 2020 (£527.9m), and 64% higher in Q3 2020 (£575.4m), when compared to the average since 2016 (£351.5m).

The figures below are according to UK finance data for outstanding loans for small and medium enterprises by region, up to Q4 2020:

• in the West Midlands, lending to SMEs was 37% higher in Q2 2020 (£10.7bn), 48% higher in Q3 2020 (£11.5bn), and 39% higher in Q4 2020 (£10.9bn), when compared to the average since 2016 (£7.8bn).
• in England, lending to SMEs was 34% higher in Q2 2020 (£103.9bn), 43% higher in Q3 2020 (£111.4bn), and 46% higher in Q4 2020 (£113.5bn), when compared to the average since 2016 (£77.7bn).

[1] www.ukfinance.org.uk/data-and-research/data/business-finance/sme-lending-within-uk-postcodes