Question to the HM Treasury:

To ask Her Majesty's Government what criteria they intend to adopt in assessing the possible awards for financial rescue under Project Birch; whether their preference is for a loan or equity; and how they will ensure that any such award does not create a dominant position in the sector concerned.

As part of its normal operations the government has always considered providing support?to strategically important companies that can reasonably be expected to have a long-term viable future, and whose failure or distress could cause disproportionate harm to the UK economy or society. Companies must have exhausted all other options before being considered, and any support given will be on terms that protect the taxpayer, with existing lenders and shareholders expected to contribute meaningfully to and share in the financial burden.

All interventions will be, by definition, bespoke. As appropriate, the Government will include provisions to allow the taxpayer to share in the benefits of a company’s recovery, including through equity, equity-like and hybrid instruments. Any intervention will be designed to minimise economic distortion and be on commercial, or close to commercial terms, as far as is practicable.