Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

UK has classified $1.3 bln of COVID 'bounce back' loans as suspected fraud -source

UK has classified $1.3 bln of COVID 'bounce back' loans as suspected fraud -source

The British government is set to release data showing around 1.1 billion pounds of small business loans ($1.27 billion) made under a COVID-19 emergency lending scheme has already been classified as suspected fraud, a source told Reuters.
The British government is set to release data showing around 1.1 billion pounds of small business loans ($1.27 billion) made under a COVID-19 emergency lending scheme has already been classified as suspected fraud, a source told Reuters.

The previously unpublished data from Britain's Department for Business, Energy and Industry (BEIS) gives the first firm indication of likely fraud levels in the scheme, which has faced scrutiny over the quality of checks on borrowers.

British banks handed out 47 billion pounds in total in government-guaranteed 'bounce back loans' from May 2020 to struggling small businesses hit by COVID-19 lockdowns.

A publication date for the latest report has not been fixed and the data are yet to be finalised, the source with direct knowledge of the data said.

The 1.1 billion pounds represents the current level of loans that have been flagged as suspect, and more could come to light.

"We’re continuing to crack down on COVID support scheme fraud and will not tolerate those who seek to defraud consumers and taxpayers," a spokesperson for the government said.

The support schemes were implemented quickly to save jobs, the spokesperson said, adding that fraud estimates will vary from eventual losses, because some funds may be recovered or repaid.

The government's current central estimate for bounce back loans fraud is for a final total of 3.3 billion pounds, or 7.5% of the total lent, the spokesperson said.

In addition to the suspected fraud, banks have claimed 2.6 billion pounds worth of government guarantees for loans that were in default, up from 1.6 billion pounds in March this year, according to the source.

A further 1.2 billion pounds worth of such claims have been paid out, the source said, against 350 million pounds of claims as of March 31, in data last published on July 28.

Some 28.3 billion pounds worth of loans are being repaid on schedule, the data from the source showed, while a further 4.7 billion of the total have been fully repaid.

The scheme has long been dogged by concerns over a high risk of fraud as the government set it up with few checks on borrowers in order to get cash out quickly.

Loans of up to 50,000 pounds apiece were handed to 1.6 million recipients under the scheme. Parliament's Public Accounts Committee estimated in April as much as 4.9 billion pounds lent could ultimately be fraudulent.

The National Audit Office, which scrutinises public-sector spending, said in December the government failed to guard against fraud on the scheme, opening itself up to billions of pounds of losses.

A junior government minister Theodore Agnew resigned in protest at the handling of the scheme in January, saying efforts to stop fraudulent abuse on the loans was "woeful".

($1 = 0.8639 pounds)
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
×