The Enterprise Finance Guarantee Scheme was established to ensure that struggling businesses were given the support they needed during the banking crisis of 2008-09. It was designed so that banks could apply for financial support to ensure that businesses could afford daily running costs.
However, this scheme was misused by banks such as the Royal Bank of Scotland. Some businesses is Delyn were mis-sold this scheme in what appears to be a deliberate attempt to profiteer at someones loss. Perfectly good businesses that employed people in our constituency were run into the ground by financial institutions who wanted to make a quick buck.
A campaign has been ongoing for years to try and hold those with power and influence in banking to account for their actions. I wanted the Minister to provide an answer as to what discussions she will have with the Treasury to ensure that the scheme is properly regulated. She has promised to write an in-depth response which I eagerly await.
I have been working with my constituent for some time now to shed light on the Royal Bank of Scotland scandal which saw many viable small and medium sized businesses put into insolvency.
Twice a debate was scheduled in Parliament on this important matter and twice it was cancelled at short notice. It is vital that we have the chance to raise our deeply held concerns on the running of this still publicly owned bank and ensure justice for those who faced RBS in this scandal.
I have been campaigning long and hard for justice for the businesses who were poorly treated by the Royal Bank of Scotland following the banking crisis. RBS used a government scheme designed to help businesses through the recession to increase their balance sheets at the cost of the small businesses future. This saw many businesses – which were profitable and providing employment – go bust. There was due to be a debate on this last week, but due to constraints on parliamentary time it was not held.
That is why I urged the Leader of the House to grant this debate before the Government sold off RBS – at a loss might I add – and claim no responsibility.
On Tuesday, I asked the Business Minister, Margot James MP, about the Royal Bank of Scotland (RBS) Enterprise Finance Guarantee (EFG) scandal.
The EFG was a government scheme established to help struggling businesses – especially construction firms – after the banking crash of 2008. However, RBS appear to have used the EFG to transfer debt to the government scheme to help with their terrible balance sheets. This caused many viable businesses, including ones in Delyn, to be put under tremendous pressure causing foreclosure. Read more “Business, Energy and Industrial Strategy Questions: RBS”