Business borrowing hits a high as Covid-19 hammers UK economy

British businesses borrowed 50 per cent more in the second quarter of 2020 than the whole of the previous year.

The jump comes from the Covid-19 pandemic taking a “wrecking ball” to world economies.

Firms in the UK borrowed £34.5 billion in the three months to the end of June, reports lobby group UK Finance.

Stephen Pegge, MD of UK Finance, said:

“Demand for additional support was substantial.”

And, more than one million business applied to the Government’s various lending schemes – handing out £57 billion.

However, there are fears the Bounce Bank Loan (BBL) – designed to help small businesses – has been “vulnerable” to fraudulent claims.

The National Crime Agency has launched an investigation into BBLs and organised crime.

 

 

 


About the Author

Philip Braund spent 16 years at the Daily Mirror as a reporter and news editor before moving to ITV. He was the series producer of the ground-breaking investigation programme The Cook Report, Managing Editor at ITV's Millbank Studios, and Head of News at ITV Central. He has won national and regional Royal Television Society awards for documentaries.



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