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 default rates amongst (a) Coronavirus Business Interruption Loan Scheme and (b) Bounce Back Loan Scheme borrowers in its accounting calculations.

Estimates of potential guarantee claims by lenders under the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS) were provided in the accounts of the Department for Business, Energy and Industrial Strategy for 2019/20. These estimates were in the range of 10-25% for CBILS and 35-60% for BBLS. Accounting provision for losses and potential future losses will be made in the Department’s 2020/21 accounts, which will be published in due course.