Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reason the British Business Bank has accelerated accreditation for some existing lenders; and what steps his Department is taking to prevent fraudulent applications for such accreditation.
Answered by Paul Scully
The Recovery Loan Scheme ensures businesses of any size can continue to access finance they need once the existing Covid-19 loan schemes close.
All lenders will be subject to an assessment of their proposals, and subject to usual British Business Bank governance around approvals. Existing accredited Coronavirus Business Interruption Loan Scheme lenders have been invited to apply for accreditation. An accelerated process, for some of these lenders, will ensure that a broad range of lenders is in place to offer facilities as soon as possible.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment his Department made of the suitability of Greensill Capital to become an accredited lender under the Coronavirus Large Business Interruption Loan Scheme.
Answered by Paul Scully
Greensill Capital were approved by the British Business Bank (Bank) in June last year to provide finance through the Coronavirus Large Business Interruption Loan Scheme (CLBILS), based on criteria set out in the CLBILS “Request for Proposals”.
The Department for Business, Energy and Industrial Strategy had no role in the Bank’s decision to accredit Greensill Capital. All decisions taken by the Bank were made independently and in accordance with the Bank’s usual procedures.
All accredited lenders are subject to audit by the Bank to ensure their compliance with scheme rules. If serious non-compliance is identified, the Bank is entitled to take remedial action. Such action might include termination of the guarantee agreement or withdrawal of the guarantee.
While the Bank looks into Greensill’s position it is not able to originate new lending that benefits from a Government guarantee.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, how many lenders have had their Government guarantee on loans made under the (a) Coronavirus Large Business Interruption Loan Scheme and (b) Coronavirus Business Interruption Loan Scheme removed; and what the reasons are for that removal.
Answered by Paul Scully
All accredited lenders are subject to audit by the British Business Bank to ensure their compliance with scheme rules. If serious non-compliance is identified, the Bank is entitled to take remedial action. Such action might include termination of the Guarantee Agreement, or withdrawal of the Guarantee.
It would not be appropriate to comment on individual cases given commercial sensitivities.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department received advice from (a) banks and (b) specialist advisors on identifying fraudulent applications for (i) bounce back loans and (ii) coronavirus business interruption loans.
Answered by Paul Scully
The Department continues to work with other Government Departments, lenders, and law enforcement agencies to tackle fraudulent abuse of the schemes.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent estimate his Department has made of the number of fraudulent applications under the (a) Bounce Back Loan Scheme and (b) Coronavirus Business Interruption Loans Scheme to date.
Answered by Paul Scully
As part of the Bounce Back Loan Scheme (BBLS) application process lenders are required to undertake fraud, Know Your Customer and Anti Money Laundering checks. In addition, the application form makes clear that any individual who knowingly provides false information is at risk of criminal prosecution.
The Coronavirus Business Interruption Loans Scheme is operated on the same basis as fully commercial loans, with lenders conducting the full range of checks they would usually make, subject to the specific eligibility requirements of the scheme. The Department continues to work with other Government Departments, lenders, and law enforcement agencies to tackle fraudulent abuse of the schemes.
Further details of how we expect the schemes to perform, including an estimate of fraud losses, will be set out in the BEIS Annual Report for 2020-21 published later this year.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment his Department has made of whether Coronavirus Business Interruption loans (CBILS) had been extended to companies that are part of or associated with the GFG Alliance; and whether those loans complied with the eligibility criteria set by the CBILS scheme.
Answered by Paul Scully
We are unable to provide information relating to individual borrowers as it is commercially sensitive.
Details of facilities made available under the Coronavirus Business Interruption Loan Scheme will be published where required by the European Commission’s Transparency Aid Module in due course.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate his Department has made of the number of disinfectant products that are marketed and sold in the UK that are making false or misleading claims about their efficacy in killing covid-19 on surfaces; and what steps his Department is taking to tackle those false and misleading claims.
Answered by Paul Scully
The Advertising Standards Authority has an online complaints page for people to report advertisements that make misleading, harmful or irresponsible claims about COVID-19. The form can be found at: https://www.asa.org.uk/make-a-complaint/quick-report.html.
Furthermore, the Competition and Markets Authority has created a COVID-19 taskforce and set up an online form to enable consumers and business to report any businesses they believe is behaving unfairly during the pandemic. The form can be found at: https://www.coronavirus-business-complaint.service.gov.uk/.
The information received through those exercises is fed into the enforcement activities of those respective bodies and discussed at the Consumer Protection Partnership which coordinates activities.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether officials in his Department have had discussions with officials in the Treasury on making hairdressing salons eligible for business rate relief.
Answered by Paul Scully
Under guidance published on 18th March, hereditaments that are being used for the provision of hair and beauty services (such as hairdressers, nail bars, beauty salons, tanning shops, etc.) do qualify for the grants. It will be for individual local authorities to determine in each individual case when, having regard to this guidance, to grant relief.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to issue guidance to hairdressers, barbers and beauty salons on closing as a result of the covid-19 outbreak.
Answered by Paul Scully
In order to further reduce the spread of the virus, on Friday 20 March, the Government told all businesses and venues in which activity necessitates prolonged social contact to close. This decision reflected clinical advice that the spread of infection is likely where people are in close contact for more than 15 minutes.
On 23 March, my Rt. Hon. Friend the Prime Minister announced increased measures to reduce social contact and expanded the list of business that should close immediately, and this included hairdressers, beauty and nail salons.
Business owners and employees are encouraged to check https://www.gov.uk/coronavirus for the latest guidance and support available.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his department plans to bring forward legislative proposals to require supermarkets to introduce social distancing measures during the covid-19 outbreak.
Answered by Nadhim Zahawi
The Government will continue to have regular conversations with industry stakeholders, including the British Retail Consortium and supermarket CEOs. We are keen to ensure supermarkets are well prepared to deal with a range of scenarios, while ensuring their operations remain in line with the latest health guidance.
Supermarkets that remain open will be expected to comply with social distancing requirements. The industry is doing everything it can to meet this challenge and the Government will continue to work with industry to help them do so