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

Select Committee
Public Accounts Committee HC 687 16 December 2020
Report Status Government responded
Conclusions & Recommendations 21 items (15 recs)
Source View on Parliament website
Government Response (AI assessment · 21 of 21 classified)
Accepted 10
Accepted in Part 1
Acknowledged 3
Not Addressed 4
Rejected 3
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty third report from Session 2019-21 · published 25 Mar 2021
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Recommendations & Conclusions

10 results
2 Recommendation Accepted
The Scheme was implemented with impressive speed but does not strike the right balance between...
Recommendation
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 Summary
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
HM Treasury has not yet finalised the rules lenders need to follow to ensure overdue...
Recommendation
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 Summary
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
The government’s view that businesses were unable to survive more than a two- week lockdown...
Recommendation
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 Summary
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
The Department informed us that the speed at which finance could be provided was a...
Recommendation
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 Summary
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
The Bank does not collect information on how businesses have used the loans.36 The NAO...
Recommendation
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 Summary
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
HM Treasury and the Bank told us they are continuing to work with lenders on...
Recommendation
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 Summary
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
HM Treasury explained to us that, at present, recoveries for the smaller loans are captured...
Recommendation
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 Summary
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
The Government indicated that its overarching objective was speed.48 No written objectives were outlined at...
Recommendation
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 Summary
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
The National Audit Office has previously recommended that the Bank focus more 41 UK Finance...
Recommendation
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 Summary
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
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 … Read more
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.
HM Treasury
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