‘Challenge’ for banks that used taxpayer cash to cover fraudulent Covid loan losses

Rishi Sunak: ‘People are rightly furious that fraudsters took advantage of our vital Covid support schemes, and we are acting to make sure they pay the price.’ Photograph: Christopher Furlong/Getty

The British Business Bank has pledged to “call out” banks that took taxpayer cash to cover losses on fraudulent Covid loans, but failed to apply the minimal checks.

Patrick Magee, the state-owned business bank’s chief commercial officer, told MPs on the Treasury Committee on Wednesday that nearly £63m had been paid out on potentially fraudulent coronavirus business loans to UK banks so far.