Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions his Department has had with representatives of UK banks on the potential merits of enabling new small business owners to submit personal documentation in lieu of formal business contracts or proof of income.

Throughout the COVID-19 pandemic, there has been unprecedented demand for banking services, this accompanied with working restrictions due to social distancing has meant banks have faced significant capacity pressures which has limited their ability to meet demand for their services. Banks are doing all they can to meet this demand in these difficult circumstances, and the Government has always been clear that lenders should open to new customers where it is operationally possible for them to do so.

I sympathise with businesses opening their businesses during the pandemic, but decisions about which documentation is required from individual businesses remain commercial decisions for banks and building societies. It would be inappropriate for the Government to intervene in these decisions.