COVID-19: Bounce Back Loan Scheme

Public Accounts Committee Closed Inquiry
Opened: 24 Sep 2020 Closed: 25 Mar 2021 Parliament page
This inquiry continues our work on government’s response to the Covid-19 pandemic. This inquiry focuses on the NAO’s report on the Bounce Back Loan Scheme : its purpose; how it functions; how it has performed to date; and how government manages the associated value for money risks – including the … Read more
15 Recommendations
6 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 5 events
25 Mar
2021
Report published
13 Jan
2021
Correspondence
16 Dec
2020
Report published
5 Nov
2020
Oral evidence
5 Nov
2020
Correspondence
Oral evidence sessions 1 session
5 Nov 2020
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COVID-19: Bounce Back Loans
Catherine Lewis La Torre · British Business Bank Katherine Braddick · HM Treasury Patrick Magee · British Business Bank Sarah Munby · Department for Business, Energy and Industrial Strategy Sir Tom Scholar · HM Treasury
Title HC No. Published Items Response
Thirty-third Report: Covid-19: Bounce Back Loan Scheme HC 687 16 Dec 2020 21 Responded
Recommendations & Conclusions
10 results
Clear
2 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
The Scheme was implemented with impressive speed but does not strike the right balance between...
The Scheme was implemented with impressive speed but does not strike the right balance between supporting business and protecting the taxpayer. Thanks to the hard work and effort of civil servants, the Scheme was launched within two weeks of the … Read more
Government Response
The government agreed and stated it implemented the recommendation by actively using all available data in scheme design, undertaking analytical work with dashboards and data comparisons, and developing a comprehensive monitoring and evaluation plan for all three loan schemes, including tendering for an external evaluation contractor.
HM Treasury
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5 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
HM Treasury has not yet finalised the rules lenders need to follow to ensure overdue...
HM Treasury has not yet finalised the rules lenders need to follow to ensure overdue loans are repaid. If a borrower does not repay the loan HM Treasury expects lenders to try to recover the money owed. But there is … Read more
Government Response
The government agreed and stated it has already implemented the recommendation by working with UK Finance and lenders to develop and share consistent recovery guidance, aligning it with regulatory bodies. They opted not to publish the guidance publicly to avoid compromising recovery processes.
HM Treasury
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10 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
The government’s view that businesses were unable to survive more than a two- week lockdown...
The government’s view that businesses were unable to survive more than a two- week lockdown period was based on anecdotal evidence, and a survey conducted by the Association of Chartered Certified Accountants in mid-April.23 The Department told us that its … Read more
Government Response
The government agreed and stated it has implemented the recommendation by actively seeking to use all available data in scheme design, developing analytical models, and commissioning a comprehensive monitoring and evaluation plan for all three loan guarantee schemes.
HM Treasury
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11 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
The Department informed us that the speed at which finance could be provided was a...
The Department informed us that the speed at which finance could be provided was a key design and operational requirement. We were told that the Department placed no budgetary cap on the Scheme and that demand was far greater than … Read more
Government Response
The government agreed and stated it has implemented the recommendation by actively seeking to use all available data in scheme design, developing analytical models, and commissioning a comprehensive monitoring and evaluation plan for all three loan guarantee schemes.
HM Treasury
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15 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
The Bank does not collect information on how businesses have used the loans.36 The NAO...
The Bank does not collect information on how businesses have used the loans.36 The NAO report outlined that there is some evidence that businesses are using the money to pay back existing debt, which the Bank describes as a ‘economically … Read more
Government Response
The government agreed and is implementing a Monitoring and Evaluation plan for the schemes, with an independent evaluator contracted to publish an initial assessment by Autumn 2021, and will develop SMART objectives for future schemes.
HM Treasury
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17 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
HM Treasury and the Bank told us they are continuing to work with lenders on...
HM Treasury and the Bank told us they are continuing to work with lenders on debt recovery protocols and processes that are fair to businesses, lenders and taxpayers. HM Treasury expects lenders to try to recover the money owed but … Read more
Government Response
The government agreed and stated it has already implemented the recommendation by working with lenders to develop consistent recovery guidance, which has been shared with accredited lenders.
HM Treasury
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18 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
HM Treasury explained to us that, at present, recoveries for the smaller loans are captured...
HM Treasury explained to us that, at present, recoveries for the smaller loans are captured and overseen by the FCA and, for larger loans, by the Lending Standards Board. Thus, although the details have not been clarified, there is already … Read more
Government Response
The government agreed and stated it has already implemented the recommendation by working with lenders to develop consistent recovery guidance, which has been shared with accredited lenders.
HM Treasury
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19 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
The Government indicated that its overarching objective was speed.48 No written objectives were outlined at...
The Government indicated that its overarching objective was speed.48 No written objectives were outlined at the inception of the Scheme and no business case was put forward. The Bank, HM Treasury and the Department, did not agree the Scheme objectives … Read more
Government Response
The government agreed and committed to implementing a Monitoring and Evaluation plan for the current schemes by Autumn 2021, including an independent evaluation contractor for process, impact, and economic assessments. It also committed to analysing the wider lending market and ensuring SMART objectives and performance measures for any future schemes prior to launch.
HM Treasury
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20 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
The National Audit Office has previously recommended that the Bank focus more 41 UK Finance...
The National Audit Office has previously recommended that the Bank focus more 41 UK Finance Written Evidence, para 27 42 Q 49 43 Q 70; C&AG’s Report, para 3.8 44 Q 72 45 Q 64 46 Qq 70, 71 47 … Read more
Government Response
The government agreed and stated it has implemented the recommendation by using all available data in scheme design, undertaking analytical work, and developing a comprehensive monitoring and evaluation plan for all three loan guarantee schemes, including tendering for an external evaluation contractor.
HM Treasury
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21 Recommendation Accepted
Thirty-third Report: Covid-19: Bou…
As HM Treasury informed us, during the 24 September Winter Economy Plan Statement, the Chancellor...
As HM Treasury informed us, during the 24 September Winter Economy Plan Statement, the Chancellor indicated there would be a further loan scheme, which is currently in development and will be announced early 2021.54 It is important that any replacement … Read more
Government Response
The government agrees with the recommendation for future schemes to enable effective lender competition. It is implementing a Monitoring and Evaluation plan, tendering for an independent evaluator, and will publish an initial assessment by Autumn 2021, ensuring SMART objectives for future schemes.
HM Treasury
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Government Response AI assessment · 21 of 15 classified
Accepted 10
Accepted in Part 1
Acknowledged 3
Not Addressed 4
Rejected 3
Total 15 recs + 6 conclusions
Correspondence 2 letters
13 Jan 2021 Correspondence from Catherine Lewis La Torre, Chief Executive, British Business Bank, re Covid-19: Bounce Back Loan Scheme report, dated 18 December 2020
Parliament page
5 Nov 2020 Correspondence from the British Business Bank, dated 3 November 2020 on the Bounce Back Loan Scheme (BBLS)
Parliament page