""I keep hearing as if there were no checks done whatsoever, or that we didn't know what we were getting ourselves into," Sunak said while giving evidence to the inquiry."
""Both of those narratives are completely wrong. Of course we knew the risks we were taking on.""
The Bounce Back Loan scheme launched in May 2020 allowed small businesses to borrow up to £50,000 with a 100% government guarantee, issuing nearly 1.5 million loans worth around £46 billion. The scheme was delivered in under two weeks and relied largely on standard banking fraud controls, with loans capped at 25% of turnover while lenders accepted applicants' declarations without independent verification. There were no checks on whether businesses had genuinely been affected by the pandemic or on how funds were used. A report estimated fraud and error could total up to £2.8 billion, with £1.9 billion already flagged as fraudulent by lenders. Decision-makers prioritized speed to prevent business collapses despite known vulnerabilities.
Read at Business Matters
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