Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of peer to peer lending and its potential for growth.

The Government believes that peer-to-peer (P2P) lending delivers innovative financial services for both businesses and consumers that can provide competition to the major banks and is keen to see the sector continue to grow and evolve.

The Government has implemented a proportionate, principles-based regulatory regime for P2P lending, balancing the need for consumer protection with allowing the sector to grow and evolve.

P2P business lending grew by 51% in 2017, totalling £1.78bn of lending, according to the British Business Bank’s Small Business Finance Markets Report 2017-18.