21
Accepted
As HM Treasury informed us, during the 24 September Winter Economy Plan Statement, the Chancellor...
Recommendation
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 guarantee scheme also enables all lenders to compete effectively in the market. The Bank’s Reservation Notice at the start of the Scheme highlighted concerns about the impact on competition in the market. This is in direct relation to the Bank’s objective of creating “a more diverse finance market for smaller businesses, with a greater choice of options and providers”.55 The five largest lenders provided 89% of loans under the Scheme, compared to 65% of total SME debt, increasing their share of the SME lending market.56 52 C&AG’s Report, British Business Bank, Session 2019–20, HC 21, 10 January 2020 53 Q 83 54 Q 34 55 https://www.british-business-bank.co.uk/what-the-british-business-bank-does/ 56 C&AG’s Report, para 24 14 Covid-19: Bounce Back Loan Scheme
Government Response Summary
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.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 6.2 The department is actively implementing a Monitoring and Evaluation plan across the three current schemes. As part of this, working with the department, the Bank has put out to tender a contract for an independent evaluator to assess the schemes. This will involve a process evaluation, impact evaluation and economic evaluation, publishing an initial assessment by Autumn 2021. As part of the ongoing analysis of current schemes and potential future schemes, the government is analysing the wider lending market, and the role of the government. The department will actively work to ensure SMART objectives are developed upon for any future schemes, with key metrics and performance measures outlined and agreed.
Source
Committee
Public Accounts Committee
Report
Thirty-third Report: Covid-19: Bounce Back Loan Scheme
16 Dec 2020
HC 687
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.6 yrs
Report published
16 Dec 2020