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Written Question
Coronavirus Business Interruption Loan Scheme
Monday 14th March 2022

Asked by: Emma Lewell-Buck (Labour - South Shields)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what guidance he has provided to banks, financial services and providers regarding early termination fees for Coronavirus Business Interruption Loan Schemes.

Answered by John Glen - Paymaster General and Minister for the Cabinet Office

For Bounce Back Loan Scheme, early repayment is permitted at any stage, without early repayment fees.

For CBILS and CLBILS, as the loan are written in line with lenders’ commercial processes, there is no rule against lenders charging early repayment fees.


Written Question
Food Banks: Coronavirus
Monday 22nd November 2021

Asked by: Colleen Fletcher (Labour - Coventry North East)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the impact of the covid-19 outbreak on foodbank use in (a) Coventry North East constituency, (b) Coventry, (c) the West Midlands and (d) England.

Answered by David Rutley - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)

No assessment has been made. Foodbanks are independent, charitable organisations and the Department for Work and Pensions does not have any role in their operation. There is no consistent and accurate measure of food bank usage at a constituency or national level. We understand the data limitations in this area, and thus from April 2021 we introduced a set of questions into the Family Resources Survey (FRS) to measure and track food bank usage. The first results of these questions are due to be published in March 2023 subject to usual quality assurance. These questions will allow us to gauge where people in food security are seeking help and over time will allow is to build a time series on the scale of food bank usage.

We recognise that some people may require extra support over the winter as we enter the final stages of recovery, which is why vulnerable households across the country will now be able to access a new £500 million support fund to help them with essentials. The Household Support Fund will provide £421 million to help vulnerable people in England with the cost of food, utilities and wider essentials. The Barnett Formula will apply in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.


Written Question
Coronavirus: Government Assistance
Monday 20th September 2021

Asked by: Stephen Farry (Alliance - North Down)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to mitigate potentially anti-competitive consequences of the Government's lending schemes via the (a) Bounce Back Loan, (b) Coronavirus Business Interruption Loan and (c) Coronavirus Large Business Interruption Loan for the UK banking sector.

Answered by John Glen - Paymaster General and Minister for the Cabinet Office

Over 1.6 million businesses accessed over £79 billion of finance through the Covid-19 business loan schemes. The Treasury recognises the vital role that non-banks and challenger banks play in the provision of credit to SMEs. It is grateful for the way the sector has responded to the current crisis, and remains committed to promoting the participation of a diversity of lenders in the market and widening the funding options available to UK businesses.

We will continue to work with non-bank lenders to support their participation in the new Recovery Loan scheme following the closure of the previous loan guarantee schemes, as well as engaging closely with alternative lenders and continuing to promote competition more generally.
Written Question
Coronavirus Business Interruption Loan Scheme
Monday 6th September 2021

Asked by: Kirsty Blackman (Scottish National Party - Aberdeen North)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the profits made by banks and authorised lenders from providing finance under government covid-19 loan schemes.

Answered by John Glen - Paymaster General and Minister for the Cabinet Office

Under the rules of our guarantee schemes, accredited lenders are required to pass on to borrowers the benefit of the guarantee in their pricing, reflecting the reduced credit risk provided by the government guarantee.

To provide further protection, under the Bounce Back Loan Scheme the government fixed interest rates at 2.5% for all borrowers. Under the Coronavirus Business Interruption Loan Scheme , the government imposed a cap on interest rates at 14.99% - although the vast majority of loans saw interest rates well below this cap.


Written Question
Food Poverty
Monday 6th September 2021

Asked by: Rachael Maskell (Labour (Co-op) - York Central)

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the implications for her policies of the potential demand on (a) food banks and (b) voluntary organisations supporting communities to tackle food poverty over summer 2021.

Answered by Will Quince

No assessment has been made.

Foodbanks are independent, charitable organisations and the Department for Work and Pensions does not have any role in their operation. There is no consistent and accurate measure of food bank usage at a constituency or national level.

Since 1 December, the Covid Winter Grant Scheme and the Covid Local Support Grant have provided Local Authorities in England with additional funding to support families and individuals who are struggling with the cost of food and essential utility bills as a result of the Coronavirus pandemic. On 21 June we extended this temporary scheme for a final time with an additional £160 million in funding through 30 September, taking total funding under the scheme to £429 million. This brings the end date for this scheme past the lifting of restrictions, supporting families who might need additional help to get back on their feet as the vaccine rollout continues and our economy recovers. As part of this extension, the City of York Council has been allocated £392,216, taking total funding since 1 December to £1,051,874.54.

This year, we are also investing up to £220m in the Holiday Activities and Food programme which has been expanded to every Local Authority across England. Participating children will benefit from a range of support, including a healthy and nutritious meal as well as fun and engaging activities during the Summer and Christmas holidays in 2021. We also increased the value of Healthy Start Vouchers from £3.10 to £4.25 in April.


Written Question
Personation
Tuesday 6th July 2021

Asked by: Daisy Cooper (Liberal Democrat - St Albans)

Question to the Home Office:

To ask the Secretary of State for the Home Department, if she will make it her policy to compel (a) banks, (b) utility providers, (c) large retailers and (d) public bodies, that are commonly impersonated by scammers for the purposes of defrauding the public, to publish warnings of known scams in the media and alert their customers.

Answered by Kevin Foster

The Government recognises the serious risk around fraudsters using advertising to commit some of the most harmful frauds. We are working with law enforcement and the private sector to help keep the public safe from these crimes and ensure these fraudsters have no space to operate.

We know the best way to tackle these scams is to ensure the public have all the advice and support they need to detect these frauds and avoid them. This is why we have published guidance on GOV.UK containing easy-to-follow steps and useful resources. This can be accessed here:

www.gov.uk/government/publications/coronavirus-covid-19-fraud-and-cyber-crime

As well as this, Action Fraud, the national reporting service for all victims of fraud and cybercrime, also regularly provide fraud alerts via their website including on common and newly seen fraud schemes:

www.actionfraud.police.uk/news.

However, we continue to explore all opportunities to tackle these terrible crimes. This includes through the DCMS-led Online Advertising Programme which will be considering the role of online advertising in perpetuating some of the highest harm fraud types. This is due to be consulted on before the end of this year.


Written Question
Bounce Back Loan Scheme and Coronavirus Business Interruption Loans Scheme: Fraud
Tuesday 13th April 2021

Asked by: Angela Eagle (Labour - Wallasey)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department received advice from (a) banks and (b) specialist advisors on identifying fraudulent applications for (i) bounce back loans and (ii) coronavirus business interruption loans.

Answered by Paul Scully

The Department continues to work with other Government Departments, lenders, and law enforcement agencies to tackle fraudulent abuse of the schemes.


Written Question
Coronavirus Business Interruption Loan Scheme: NatWest
Monday 1st February 2021

Asked by: Emma Lewell-Buck (Labour - South Shields)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what his Department is taking to support small business owners who have had their NatWest bank accounts suspended or closed after applying for the Coronavirus Business Interruption Loan Scheme.

Answered by John Glen - Paymaster General and Minister for the Cabinet Office

The Government launched the Coronavirus Business Interruption Loan Scheme (CBILS) to support businesses’ access to finance during the pandemic. As of 24 January, the scheme has supported more than 87,000 businesses access more than £20bn of finance.

Decisions about what products are offered to individual businesses, including business bank accounts, remain commercial decisions for banks and building societies, it would therefore be inappropriate for the Government to intervene in these individual decisions.

There is no requirement in the scheme rules for an applicant to have a business bank account with the lender they apply with. The Government believes any dispute arising between banks and their customers is best resolved by the parties involved. Should individuals be unsatisfied with their bank's response to their complaint, they may wish to consider an approach to the Financial Ombudsman Service (FOS) who provide a free, independent dispute resolution service for bank customers, including eligible small businesses.

Currently there are over 100 accredited lenders offering CBILS, and individuals may wish to consider approaching one of these various lenders to access support.


Written Question
Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme
Monday 1st February 2021

Asked by: Lucy Powell (Labour (Co-op) - Manchester Central)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, how much interest the Government has paid to banks for (a) bounce back loans and (b) Coronavirus Business Interruption Loan Scheme (CBILS); and how much banks have charged the Government for arranging CBILs loans.

Answered by Paul Scully

The Government covers interest payments on behalf of borrowers for the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS) for the first 12 months after drawdown of a facility. For CBILS, interest rates and fees will vary between banks and will depend on the specific lending proposal. The interest rate for Bounce Back loans is set at 2.5%.

As of 28 January 2021, the total value of interest payments made for both schemes is as follows:

  • Total amount recorded for interest paid to Banks under BBLS: £193,269,778
  • Total amount recorded for interest paid to Banks under CBILS: £81,991,145

For CBILS, the Government also covers arrangement fees on behalf of borrowers.

As of 28 January 2021, the total amount recorded for arrangement fees paid to banks is £24,256,440.

Banks are not permitted to charge any fees for administering BBLS.


Written Question
Small Businesses: Coronavirus
Thursday 21st January 2021

Asked by: Nadia Whittome (Labour - Nottingham East)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions he has had with major banks on support for small businesses during the covid-19 outbreak.

Answered by John Glen - Paymaster General and Minister for the Cabinet Office

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

The Treasury recognises the vital role that major banks, non-banks, and challenger banks play in the provision of credit to SMEs. It is grateful for the way the sector has responded to the crisis, providing a range of commercial support to their customers and participating in the coronavirus guarantee loan schemes.

On 23 March 2020, the Coronavirus Business Interruption Loan Scheme (CBILS) was launched to support small and medium sized businesses’ access to lending, with viable businesses eligible to apply for loans of up to £5m. Furthermore, on 4 May 2020, the Government launched the Bounce Back Loan Scheme (BBLS) which ensures that the smallest businesses can access loans from £2,000 up to £50,000, capped at 25% of businesses' turnover in a matter of just days.

The British Business Bank has so far accredited 29 BBLS lenders, including challenger banks and non-bank lenders, and more than 100 CBILS lenders. Together, as of 13 December, the schemes have supported more than 1.5 million businesses with facilities totalling over £63 billion.

In order to give the smallest businesses further support and flexibility in making their repayments for BBLS, the Chancellor has announced “Pay as You Grow” (PAYG) options. Furthermore, the Government has amended the CBILS rules to allow lenders to extend loan terms from six to a maximum of ten years where they judge that this will help borrowers repay their loan, helping them to reduce their monthly repayments.

Banks are also providing a range of commercial support to their customers. Businesses struggling to repay any pre-existing loans should talk to their lender to discuss options.