Campaigners and Labour called on the Government to do more to nail the fraudsters who fraudulently claimed money through Covid financial schemes.
Detectives from the National Investigation Service have so far recovered less than £5 million of the stolen loot from the Bounce Back Loan Scheme handouts. The team, which tackles organised crime, have also arrested several people – including a man and woman at Heathrow, who pilfered £670,000 in public funds.
The Bounce Back Loan Scheme allowed small and medium-sized firms to borrow up to £50,000. The loan, which was interest-free for the first 12 months, was meant to help businesses survive the pandemic – but crooks soon realised it could be abused.
In a shock address to the House of Lords, Anti-Fraud Minister Lord Agnew accused ministers of “arrogance, indolence and ignorance” after it emerged 1,000 companies that received money as part of the Bounce Back Loan Scheme did not even exist before March 2020. Around £48 billion was borrowed under the scheme.
John O’Connell, chief executive of the TaxPayers’ Alliance, said: “The scale of the abuse will shock those who played by the rules while worrying about their jobs and families.” Shadow Chancellor Rachel Reeves said: “The Government must let the National Crime Agency investigate Covid fraud from top to bottom. It is unforgivable that billions of pounds of taxpayer money has been handed to criminals.”
