During a recent appearance at the Covid inquiry, Rishi Sunak, the former Chancellor of the UK, emphasized the critical role played by the Covid loan scheme in averting a potential business catastrophe in Britain. Sunak highlighted the necessity of introducing various economic support schemes, such as furlough, during the pandemic to aid businesses and employees.
Addressing the inquiry, Sunak expressed the gravity of the situation faced by businesses, citing that many small and medium-sized enterprises had minimal cash reserves. He stressed the urgency of acting swiftly to prevent widespread business closures and job losses, noting that millions of jobs and hundreds of thousands of businesses were preserved due to the government interventions.
Sunak reiterated his stance on the decision to implement the Bounce Back Loan Scheme, defending the speed at which it was executed despite subsequent concerns about fraud risks. He affirmed that given the circumstances at the time, he would make the same choices again, emphasizing the necessity of rapid deployment to support struggling businesses.
Acknowledging the fraud risks associated with the scheme, Sunak stated that the government was fully aware of these concerns but believed that the benefits outweighed the risks. He maintained that the decision-making process prioritized the urgent need for financial assistance to businesses over potential fraudulent activities.
In conclusion, Sunak affirmed his commitment to the decisions made during the crisis, emphasizing the imperative of swift action to prevent a dire economic fallout.