UK Gov Challenged on Woeful inaction to Support Business

Alan Brown MP has hit out at the UK Government’s lack of action to support small businesses through the coronavirus crisis.

It has emerged that just over 10% of interested applicants seeking help had completed their applications.

During a Committee evidence session, BEIS Secretary Alok Sharma confirmed that less than half of the 36,000 loans that had been applied for have been approved. However, completed applications make just over 10% of the 300,000 businesses that have enquired about loans - raising the issue of a “forgotten majority” the UK government has left behind.

It was also revealed that total lending to 21st April is now £2.8 billion - a tiny fraction of the £300 billion scheme.

The British Chambers of Commerce have already outlined grave concerns that “a concerningly high number of businesses are still finding accessing the scheme too complex and too lengthy” and the CBI has revealed that “many firms are missing out”.

BEIS Committee member Alan Brown MP said:

“This crisis is a crucial time for the UK government to take the pressure off business, but the support laid out by Westminster means that struggling businesses are missing out on billions of pounds of vital funding.

“Business and industry has been clear - they need urgent financial support to get them through this difficult time. While current support risks a forgotten majority left behind by the UK government, the time for action is now. 

“My Office has been dealing with a number of local businesses and companies who are not getting the support they need due to the barriers put in place by certain banks and the UK Government. This has to change.  

“Westminster must commit to working with the financial sector to ensure that no-one is left behind. I will continue to press for action to ensure that cash gets into the hands of those who need it to protect our economy from the lasting damage this may cause.”