Companies: Coronavirus

(asked on 7th July 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many companies incorporated outside the UK have received assistance through the (a) Coronavirus Job Retention Scheme, (b) ability to defer VAT, (c) Coronavirus Large Business Interruption Scheme and (d) Covid-19 Corporate Financing Facility.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 13th July 2020

The Government has published aggregate application and approval figures on the Coronavirus Large Business Interruption Loan Scheme (CBILS) since 10 May but does not hold specific information relating to individual companies who have accessed these schemes. HMRC publishes weekly management information on the Coronavirus Job Retention Scheme (CJRS) and monthly management information on VAT deferrals. On 11 June HMRC published the Official Statistics for the Coronavirus Job Retention Scheme which included a breakdown of recipients by sector, but not individual organisations or companies. The Bank of England is responsible for publishing data on the Covid-19 Corporate Financing Facility (CCFF), including a list of organisations or companies who have made applications.

The Government does not collect data on how many companies incorporated outside of the UK have received assistance through CJRS, VAT deferral, CLBILS or CCFF. However, as laid out in the guarantee agreement, all firms borrowing through CLBILS must be engaged in trading activity in the UK at the Initial Drawdown Date and the finance facility must be used to support their trading activity in the UK. Compensation from the CJRS goes directly to the pockets of UK based workers and any VAT deferred must be repaid to HMRC by the end of the financial year.

All firms applying to the CCFF must meet a test applied by the Bank of England to show that they make a material contribution to the UK economy, including when incorporated overseas. Since 4 June the Bank of England have been publishing the names of companies with commercial paper currently outstanding through the CCFF. This is a unique level of transparency, equivalent schemes in the Eurozone and United States do not publish the names of scheme users.

Government support is aimed at businesses in genuine need. Our current measures are well-targeted at such businesses, bearing in mind the need to act very quickly to deliver this unprecedented package. We expect everyone to act responsibly and in the spirit of the package, and only claim and use support as intended.

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