Thirty-third Report: Covid-19: Bounce Back Loan Scheme

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.

The government explicitly disagrees with the recommendation to be explicit about likely losses before launching schemes, citing the need for rapid action during the pandemic and the high uncertainty of early estimates. It confirms the department is refining loss estimates for future updates to Parliament and will undertake a full impact assessment in the long term.

The government agreed with the committee's broader recommendation on balancing taxpayer interests and protecting against fraud. It outlined measures taken, including Cifas implementation and NATIS involvement for serious fraud cases, and confirmed criminal action for these. However, it did not commit to the British Business Bank providing a fraud estimates report within two weeks and maintained that self-certification remains appropriate for the current scheme.

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.

The government's response provides context on the Bounce Back Loan Scheme and the committee's report, but it does not address the specific recommendations regarding measuring the scheme's impact, establishing performance measures for new schemes, or analyzing the lending market.

The government's provided response discusses cash access, future legislation, and cashback facilities, entirely unrelated to the committee's introductory conclusion about the Bounce Back Loan Scheme.

The government agrees with the committee's observations and states it is working with the British Business Bank to explore how to further strengthen responses to future economic downturns and ensure resilient support for SMEs of all sizes.

The government acknowledges the Bank's essential role in driving economic growth and affirms that ministers acted quickly to implement the scheme in response to the pandemic's economic consequences.

The government considers the existing application process for the Bounce Back Loan Scheme, including borrower self-certification, to remain appropriate given the ongoing need for quick access to finance, and will consider future approaches for any new schemes.

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.

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.

The government rejected the recommendation, stating that due to urgency and uncertainty, it was not possible to make explicit statements on likely losses before the scheme's launch, but it will refine estimates and update Parliament, and commit to a full impact assessment later.

The government's provided response addresses a different Public Accounts Committee recommendation (3b) regarding balancing taxpayer and business interests and reliance on self-certification, not the preceding conclusion #13 on fraud management data.

The government rejected the recommendation, stating it does not intend to make public the details of its counter-fraud approach to avoid compromising its effectiveness, and that prosecution decisions are independent.

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.

The government's response addresses a different recommendation regarding the finalisation and uniformity of recovery rules for overdue loans, and therefore does not engage with the committee's conclusion about the high likelihood of businesses struggling to repay Bounce Back Loans.

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.

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.

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.

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.

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.