Fraud and error from a loan scheme to help businesses cope with the Covid-19 pandemic could cost the British taxpayer up to £27 billion, on top of some £50 billion a year lost to criminals and mistakes, a report said on Wednesday.
The Bounce Back Loan Scheme was launched in May last year to allow banks to quickly lend businesses up to £50,000 with 100 per cent state guarantee to help them cope with losses during national lockdowns.
But, the government’s business department (BEIS) estimates that between 35-60 per cent of loans may not be repaid because of fraud or credit issues, amounting to up to £27 billion, parliament’s Public Accounts Committee (PAC) said in a report.
This will be read as “fraud”. Damn Tories.
The more perceptive will look at “fraud and error”. Damn bastard Tories.
Very few indeed will look at “fraud, error and credit issues” which is the real point. Some of those loans won;t be paid back because, even despite those loans, peeps are still going to go bust.
Well, that’s the reason for the loan scheme, wasn’t it? To try to reduce this but nothing is ever reduced to zero now, is it?
This isn’t, in the slightest, to argue that it was a good scheme nor well done. Or even that it wasn’t. It’s about the language that will be used to describe it.