With £46 billion loaned out to British taxpayers by the government, the subject of bounce back loan fraud has been much discussed. Figures remain approximate at best but if we take Cabinet Office data for generalised fraud across the public sector, we could estimate that at least £2.3billion of bounce back loans would classify as fraudulent.
The British Business Bank, who administered the scheme, have reported over 43.000 cases of prevented Bounce Back fraud, totalling just under £1.6 billion.
It is certain, then, that the scale of the problem is enormous, and the implications for the British economy significant.
“Unfortunately, the cost to the taxpayer has the potential to be very high, if the estimated losses turn out to be correct. Government will need to ensure that robust debt collection and fraud investigation arrangements are in place to minimise the impact of these potential losses to the public purse. It should also take this opportunity to consider now the controls it would put in place to protect against the abuse of any future such schemes.”Gareth Davies, head of the National Audit Office
What is Classed as Bounce Back Loan Fraud?