Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what involvement his Department has in monitoring the Enterprise Finance Guarantee scheme.

HM Treasury does not have responsibility for the monitoring of the Enterprise Finance Guarantee scheme. The Department for Business, Innovation and Skills (BIS) has policy responsibility for the scheme and is the sole shareholder of the British Business Bank (BBB), which administers the scheme for BIS. The BBB monitors the scheme and collects information on lenders’ performance. HM Treasury does not collect this information.

HM Treasury was made aware of mis-selling concerns in relation to the operation of the scheme by RBS in February 2014 when allegations of mis-selling were first made. BIS intensified its oversight of the scheme and the wider problems at RBS that are now in the public domain were subsequently uncovered. BIS have kept HMT officials informed of their progress.

The Chancellor and the Secretary of State for BIS have regular discussions about a wide range of issues, including about Government funding schemes where necessary.

HM Treasury ministers and officials hold meetings with external organisations in the normal course of business to discuss a wide range of issues relating to financial services, which would from time to time include those lenders participating in the Enterprise Finance Guarantee scheme. In line with the Government’s aim of making this process transparent, the full list of meetings between Treasury ministers and external organisations is published online at https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel. It would not be appropriate to disclose the contents of those meetings.