Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the level of personal debt of (1) entrepreneurs, and (2) company directors of small businesses, who have not been eligible for assistance through the Coronavirus Job Retention Scheme; and what assessment they have made of the proportion of such debt which has been used to keep businesses afloat.

The Coronavirus Job Retention Scheme (CJRS) has helped to pay the wages of people in 11.5 million jobs across the country, and the Self-Employment Income Support Scheme (SEISS) has paid out £24.5 billion in grants to 2.8 million self-employed individuals.

Both of these schemes were designed with two principles in mind. First, the need to target support at those who need it most. Second, the need to protect money against error, fraud and abuse, whilst reaching as many people as possible. The Government recognises that some of the eligibility criteria and conditions needed to ensure that the CJRS or SEISS work for the vast majority of people have meant that some may not qualify for them.

Those ineligible for the SEISS or CJRS may still be eligible for other elements of the unprecedented financial support available, such as tax deferrals and billions in loans and business grants.

The Government loan guarantee schemes (including the Bounce Back Loan Scheme (BBLS)) have provided unprecedented support to businesses, with over 1.5 million loans worth over £75bn. Under BBLS no repayments are due from the borrower for the first 12 months of the loan, giving businesses the breathing space they need during this difficult time. In addition, the Government covers the first 12 months of interest payments charged to the business by the lender.

To give businesses further support and flexibility in making their BBLS repayments, the Government has implemented the “Pay as You Grow” (PAYG) options. PAYG will give businesses the option to repay their BBLS facility over ten years. The Government has also made the full repayment holiday available to borrowers from the first repayment. Together, the 12-month payment holiday and interest-free period for borrowers, along with the PAYG options, provide a generous support package giving businesses the time to get back on their feet. Businesses concerned about repayment should contact their lender to discuss the options available to them.