NEARLY two thirds of bounce-back Covid loans will never be paid back, MPs fear.
The scale of fraud and bankruptcy could cost the Treasury £27billion.
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The Bounce Back Loan Scheme was rushed out to allow small businesses quick access to cash.
But tomorrow the Public Accounts Committee of MPs will say it was rolled out at pace — leading to a “significantly increased” risk of fraud.
They will say the Treasury was “reliant on banks that it admits lack incentives given it is not their money on the line”.
Between 35 per cent and 60 per cent — up to £27billion of loans — may now never be repaid
Committee chair Dame Meg Hillier said: “Fraud is never acceptable.”
However, 55,000 fraudulent bids for £2billion in loans are estimated to have been spotted in time and thrown out.
But Universal Credit fraud rose to an all-time high of £5.5billion last year as Brits signed on.
A further 20,479 new virus cases were reported yesterday for the latest 24 hours. There were also 23 deaths, bringing the toll to 128,126.
In total, 44,581,771 first vaccine doses have been dished out and 32,721,762 second doses.