Industrial Development Act 1982: Coronavirus-related Assistance

Alok Sharma Excerpts

Thursday 9th July 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

I am tabling this statement for the benefit of Hon. and Right Hon. Members to bring to their attention spend under the Industrial Development Act 1982. In addition to the obligation to report on spend under the Industrial Development Act annually, the Coronavirus Act 2020 created a new quarterly reporting requirement for spend which has been designated as addressing the effects of coronavirus. This statement is intended to fulfil that purpose.

This report reflects the first quarter of 2020, covering the period from the introduction of the Coronavirus Act 2020 on 25 March 2020 to 31 March 2020.

Spend under the Coronavirus Act2020

Under the Coronavirus Act 2020, there is a requirement to lay before Parliament details of the amount of coronavirus-related designated assistance provided in each relevant quarter.

In the period to 31 March 2020 (from the Act’s introduction on 25 March 2020 to 31 March 2020) 983 loans worth £90.5 million were committed for covid-related purposes by lenders accredited to deliver the coronavirus business interruption loan scheme. Under this scheme, BEIS through the British Business Bank provides an 80% guarantee. The contingent liability incurred was therefore £72.4 million. The actual expenditure to 31 March 2020 was zero.

Actual expenditure of assistance provided by the Secretary of State from 25 March 2020 to 31 March 2020 = £0

All expenditure of assistance provided by the Secretary of State from 25 March 2020 to 31 March 2020 = £0

Contingent liability of assistance provided by the Secretary of State from 25 March 2020 to 31 March 2020 = £72.4 million

All contingent liability of assistance provided by the Secretary of State from 25 March 2020 to 31 March 2020 = £72.4 million

[HCWS351]