In addition to preventing 21,000 businesses from closing the support scheme could have saved the jobs of up to 400,000 people, says the Department for Business and Trade (BDT) in its latest report on the pandemic.

However, government analysis now shows that a ‘relatively high share’ of the companies claiming the support would have survived if they had not claimed the grants, but with the scheme being rushed out during the pandemic there were no thorough checks of applicants.

‘Delivery of the schemes also did not involve any material test of need, with a reliance on the eligibility criteria to target businesses facing financial distress,’ stated the DBT.

‘Analysis of the balance sheets of firms receiving grants suggested that only a quarter had financial reserves that would not have allowed them to absorb the costs associated with short-term disruptions in their ability to trade.’

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