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The previously unpublished data from Britain's Department for Business, Energy and Industry (BEIS) gives the first firm indication of likely fraud levels in the scheme, which has faced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
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
German Chancellor Friedrich Merz: “The Current Welfare State Can No Longer Be Financed”
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
Wizz Air passengers screamed as storm-battered flight diverts to Bologna
European postal services halt U.S. deliveries after Trump imposes new tariffs
Urban explorer finds abandoned luxury restaurant left to decay
Fidesz leader labels Péter Magyar a ‘bluffer’ amid escalating political spat
French rope park operator arrested for denying entry to Israeli children
Újpest thrashes Zalaegerszeg 4-1 to secure first win in five matches
Profit-margin cap costs retailers 13 billion forints a month, warns trade group
Curiosity rover finds coral-like rock on Mars hinting at watery past
U.S. green policy rollback drives investors to Europe’s sustainable finance market
Special funerals rise in Hungary: boat, aerial and forest burials gain popularity
Hungary’s Kiskunság region turning into semi-desert after extreme drought
Kopasz Bálint wins world kayak 1000 m title in Milan, making him triple world champion
Budapest’s Keleti railway station to close for four weeks for track overhaul
Balaton could be unfit for swimming by 2035 and dry by 2050, scientists warn
Leaked guidelines show Meta’s AI allowed flirty and racist interactions with children
Filming of ‘Emily in Paris’ halted after assistant director dies on set
Filipino guest workers sue after Hungary moves to deport them for pregnancy
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
×