Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will place a moratorium on building high carbon infrastructure such as expanded airports as part of the covid-19 recovery package.
Answered by Nadhim Zahawi
My Rt. Hon. Friend the Prime Minister’s ambitious Ten Point Plan will ensure that our recovery from coronavirus will be green, generate jobs, and bolster the economy, whilst continuing to drive down emissions both now and in the future. Covering clean energy, transport, nature, and innovative technologies, this plan will enable the UK to forge ahead on delivering its net zero target – and to build back better.
In the coming year, the Government will set out further plans for reducing emissions across the economy and delivering net zero. As part of this, the Government is committed to building a Britain with world class infrastructure. Spring Budget 2020 set out that the public sector will invest £640 billion over five years in our future prosperity. The Government will publish a National Infrastructure Strategy in due course, setting out further details on its long-term ambitions.
The UK’s climate change framework enables the Government to determine how best to balance emissions reductions across the economy. Any net emissions increase from infrastructure projects are managed within the Government’s overall strategy for meeting carbon budgets and the 2050 net zero target, as part of an economy-wide transition.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant the oral statement by the Chancellor of the Exchequer entitled Summer Economic Update, Official Report, column 973, whether housing association landlords will be able to access the £50 million fund to pilot steps to decarbonise social housing.
Answered by Kwasi Kwarteng
The Summer Economic Update announced £50m to demonstrate innovative approaches to retrofitting social housing at scale, accelerating the delivery of the Social Housing Decarbonisation Fund envisaged by the manifesto. This will mean warmer and more energy efficient homes and could reduce annual energy bills by hundreds of pounds for some of the poorest households in society, as well as lowering carbon emissions.
Further details on the Social Housing Demonstrator, including eligibility, will be announced in in due course before the full launch in the Autumn.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the oral statement by the Chancellor of the Exchequer entitled Summer Economic Update, Official Report, column 973, whether private rented sector tenants may apply for the green homes grant qualify for the full £10,000 if they are on a low income.
Answered by Kwasi Kwarteng
In his Summer Economic Update, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced a £2bn Green Home Grant scheme that will support homeowners and landlords in England to improve the energy efficiency of their properties, reducing energy bills and carbon emissions, and supporting a green economic recovery.
The funding will be spent on paying for accredited tradespeople to install a range of measures, for example insulation, to improve the energy performance of their homes.
Further detail on eligibility will be announced in due course, before the full launch of the scheme. Low income households will receive a higher rate of subsidy of up to 100% of the cost of measures.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the oral statement by the Chancellor of the Exchequer entitled Summer Economic Update, Official Report, column 973, whether tenants can insist that their landlord applies for a green homes grant.
Answered by Kwasi Kwarteng
In his Summer Economic Update, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced a £2bn Green Home Grant scheme that will support homeowners and landlords in England to improve the energy efficiency of their properties, reducing energy bills and carbon emissions, and supporting a green economic recovery.
The funding will be spent on paying for accredited tradespeople to install a range of measures, for example insulation, to improve the energy performance of their homes.
Further detail on eligibility will be announced in due course, before the full launch of the scheme.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what mechanisms he has put in place to monitor the operation of the Bounce Back Loan Scheme.
Answered by Paul Scully
The British Business Bank (BBB) operates the BBLS via its group of accredited delivery partners.
In order to become an accredited delivery partner, lenders must provide a detailed submission, providing information on the applicant’s organisation and its intended use of the BBLS. The BBB then conducts due diligence, assessing the applicant’s business, governance, risk management and compliance frameworks.
Before being able to commence lending via the Scheme, a Lender will then be required to complete a number of preparatory steps. Firstly, the BBLS Guarantee Agreement must be signed by the Lender. This is a standard agreement, with limited scope to negotiate changes. The BBB will then provide the Lender with training on use of the BBB Reporting System, as well as general training and communications materials on how the Scheme works.
Accredited lenders must provide records of all eligible transactions on the BBB Reporting System in a timely and accurate manner in accordance with the guidance issued. The BBB Reporting System records details, the amount and terms of the lending, any extension of the terms of the lending, borrower default and claims against the guarantee of all BBLS-supported facilities. Lenders are also subject to periodic audits, whereby samples of transactions will be analysed during the audit to check that Scheme eligibility rules and processes have been followed.
This reporting, alongside other information on the performance of the Scheme and accredited lenders is fed into various governance fora including BBB, BEIS and HMT officials, as well as regular briefings to BEIS and HMT Ministers. Statistics showing the take up of the BBLS are published weekly by HM Treasury.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what due diligence assessment procedures have been put in place for the administering bodies of applicants for a Bounce Back Loan.
Answered by Paul Scully
The British Business Bank (BBB) operates the BBLS via its group of accredited delivery partners.
In order to become an accredited delivery partner, lenders must provide a detailed submission, providing information on the applicant’s organisation and its intended use of the BBLS. The BBB then conducts due diligence, assessing the applicant’s business, governance, risk management and compliance frameworks.
Before being able to commence lending via the Scheme, a Lender will then be required to complete a number of preparatory steps. Firstly, the BBLS Guarantee Agreement must be signed by the Lender. This is a standard agreement, with limited scope to negotiate changes. The BBB will then provide the Lender with training on use of the BBB Reporting System, as well as general training and communications materials on how the Scheme works.
Accredited lenders must provide records of all eligible transactions on the BBB Reporting System in a timely and accurate manner in accordance with the guidance issued. The BBB Reporting System records details, the amount and terms of the lending, any extension of the terms of the lending, borrower default and claims against the guarantee of all BBLS-supported facilities. Lenders are also subject to periodic audits, whereby samples of transactions will be analysed during the audit to check that Scheme eligibility rules and processes have been followed.
This reporting, alongside other information on the performance of the Scheme and accredited lenders is fed into various governance fora including BBB, BEIS and HMT officials, as well as regular briefings to BEIS and HMT Ministers. Statistics showing the take up of the BBLS are published weekly by HM Treasury.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what procedures he has put in place to ensure probity in the administration of the Bounce Back Loan Scheme; and if he will make a statement.
Answered by Paul Scully
The British Business Bank (BBB) operates the BBLS via its group of accredited delivery partners.
In order to become an accredited delivery partner, lenders must provide a detailed submission, providing information on the applicant’s organisation and its intended use of the BBLS. The BBB then conducts due diligence, assessing the applicant’s business, governance, risk management and compliance frameworks.
Before being able to commence lending via the Scheme, a Lender will then be required to complete a number of preparatory steps. Firstly, the BBLS Guarantee Agreement must be signed by the Lender. This is a standard agreement, with limited scope to negotiate changes. The BBB will then provide the Lender with training on use of the BBB Reporting System, as well as general training and communications materials on how the Scheme works.
Accredited lenders must provide records of all eligible transactions on the BBB Reporting System in a timely and accurate manner in accordance with the guidance issued. The BBB Reporting System records details, the amount and terms of the lending, any extension of the terms of the lending, borrower default and claims against the guarantee of all BBLS-supported facilities. Lenders are also subject to periodic audits, whereby samples of transactions will be analysed during the audit to check that Scheme eligibility rules and processes have been followed.
This reporting, alongside other information on the performance of the Scheme and accredited lenders is fed into various governance fora including BBB, BEIS and HMT officials, as well as regular briefings to BEIS and HMT Ministers. Statistics showing the take up of the BBLS are published weekly by HM Treasury.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what the (a) turnover and (b) number of employees is of companies awarded loans under the Bounce Back Loan Scheme.
Answered by Paul Scully
At this time, we are unable to provide a breakdown of the turnover and number of employees at companies awarded loans under the Bounce Back Loan Scheme (BBLS). We are working with HM Treasury and the British Business Bank to consider what further data can be made available in the future.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he has taken to prevent fraud in the Bounce Back Loan Scheme.
Answered by Paul Scully
The Government takes the threat of fraud very seriously and a range of measures have been put in place to mitigate fraud and error risk for the loan schemes, including data and intelligence sharing arrangements, enabling us to work together and target known fraud threats.
At scheme design level, the rules of the scheme set out minimum standards in relation to fraud which highlight action lenders are expected to take to identify fraudulent applications. The British Business Bank’s (BBB) audit function enables BBB to sample portfolios of lending to assess regularity and take action if required.
For the Bounce Back Loan Scheme (BBLS), we continue to work extensively with BBB and the lenders to strengthen the anti-fraud systems in place. For obvious reasons, I cannot go into specific detail about measures either in place or in development. For the same reason, it is not possible to release the number of fraudulent applications or associated investigations.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what mechanisms he has put in place specifically to detect fraud in relation to the Bounce Back Loan Scheme.
Answered by Paul Scully
The Government takes the threat of fraud very seriously and a range of measures have been put in place to mitigate fraud and error risk for the loan schemes, including data and intelligence sharing arrangements, enabling us to work together and target known fraud threats.
At scheme design level, the rules of the scheme set out minimum standards in relation to fraud which highlight action lenders are expected to take to identify fraudulent applications. The British Business Bank’s (BBB) audit function enables BBB to sample portfolios of lending to assess regularity and take action if required.
For the Bounce Back Loan Scheme (BBLS), we continue to work extensively with BBB and the lenders to strengthen the anti-fraud systems in place. For obvious reasons, I cannot go into specific detail about measures either in place or in development. For the same reason, it is not possible to release the number of fraudulent applications or associated investigations.