COVID Relief: Bittersweet Results
The latest figures from the government’s COVID-19 financial support schemes, including the Bounce Back Loans Scheme, the Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme, have been released, revealing an estimated £1.84 billion worth of suspected fraud. This figure, primarily associated with the BBLS and CBILS, highlights the significant challenges faced in safeguarding the integrity of these emergency measures designed to support businesses through the pandemic.
In addition to this concern, the data also presents a broader picture of the schemes’ impacts, some of which are decidedly more positive. A total of £76.98 billion has been drawn across all schemes, indicating the substantial level of support extended to businesses across the UK. Of this, £24.56 billion represents the outstanding balance of total drawn loans making payments on schedule, showcasing the resilience and commitment of businesses to bounce back.
Encouragingly, £20.45 billion has already been fully repaid by borrowers, reflecting the schemes’ success in providing temporary relief without long-term debt burdens for a significant number of businesses. However, the journey towards recovery is not without its hurdles, as evidenced by the £2.05 billion outstanding balance of loans in arrears and the £0.58 billion in defaulted loans, highlighting areas where further support and intervention may be necessary.
The government and lenders have been working to reduce taxpayer obligations under these schemes, with £9.21 billion settled under guarantee agreements and a £19.49 billion reduction in the outstanding balance, thanks to repayments and recoveries.
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