Lenders have called on ministers to be lenient when approaching the recovery of debts linked to government-backed coronavirus support schemes such as the Coronavirus Business Interruption Loan Scheme. Banks have urged the Government to avoid pursuing small business owners through the courts wherever possible, and are said to be assessing support measures that could put in place before businesses are chased for loan repayments.
The Treasury is understood to be considering a proposal put forward by lobby group TheCityUK – which proposes that businesses could repay coronavirus support loans through a tax on their profits, a move the Mail on Sunday says is backed by bankers.
Read more: The Mail on Sunday