Britain has failed to properly tackle large levels of funding misuse, according to the views of lawmakers. 

Up to £4.9-billion will be lost to fraud under the coronavirus Bounce Back Loan scheme, according to statistics from the Department for Business, Energy and Industrial Strategy. However, Parliament’s Public Accounts Committee is pushing the Government to chase down the lost taxpayer money. 

Meg Hillier, a Labour MP who leads the PAC said: ” [Ministers are] using the speed and scale of its response to the pandemic as an excuse for complacent disregard for the cost to the taxpayer.” She adds: “[The Government] has no long-term plans to chase overdue debt and is not focused on lower-level fraudsters who may well just walk away with billions of taxpayers’ money.”

The Times reported that border officials have taken back suitcases that were full of cash from these loan schemes with people trying to take cash out of the country. 

There is now set to be a crackdown on the borders, and they will look to take action against people who used Bounce Back Loan finding to fund leisurely activities such as gambling, home improvements, cars or luxury items. 

Directors who have used Bounce Back Loan funds in one of these areas look set to be disqualified as a result of misspending a loan that has been intended to be used as business financial support during the pandemic. 

Government response

There are a lot of groups who are piling pressure on the UK Government to take action. The Government said that is is “continuing to crack down on Covid support scheme fraud and will not tolerate those who seek to defraud consumers and taxpayers.”

There is now a clear governmental focus on minimising the loss of taxpayer money on business-support schemes like the Bounce Back Loan. 10% of the £47-billion is supposedly due to misuse of the funding but £17-billion could be lost as a result of people who are simply struggling to make repayments. 

At Business Helpline, we have been telling you about the Government’s desire to try and recoup any money that they feel was illegitimately lost through financial schemes that were designed to help businesses during the pandemic.

If you feel like you might have got yourself into a pickle with your Bounce Back Loan, do not hesitate and get in touch with us at 0800 088 2142.

Government need to crack down on loan misuse

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Bounce Back Loan misuse restrictions after £4.9-billion loss 633f44bedef9d

Bounce Back Loan misuse restrictions after £4.9-billion loss 633f44bedefea