The former chairman of the Public Accounts Committee has urged the government to refuse coronavirus loans to companies deemed risky by HMRC.

In a letter to Chancellor Rishi Sunak, Labor MP Margaret Hodge said MPs who do not pay their fair share in good times should not be bailed by the taxpayer when it becomes difficult.

“However, I am deeply concerned that the support packages offered by the government during the crisis are open to abuse.

"While these regulations will be for many a financial lifeline, for unscrupulous companies, they will be seen as easy pickings," she wrote.

Government loan schemes have funneled tens of billions of pounds to companies to help them through the crisis in coronavirus.

The Coronavirus Corporate Financing Facility (CCFF), a Bank of England scheme designed for some of & # 39; s largest credit rating companies, has lent £ 18.8 billion to 55 companies, and promised a further £ 38.8 billion in possible loans to 68 others.

Ms Hodge said she & # 39; s decisive steps & # 39; from the Chancellor welcome to business and jobs.

However, they called on him to destroy companies that were classified as risky by Her Majesty's Revenue and Customs (HMRC).

The tax agency ranks large corporations on the basis of whether they pose a risk of lost income to the tax.

Ms Hodge said that only those with a low risk rating should have access to the CCFF, and the Coronavirus Major Interruption Loan Scheme (CLBILS), which is supported by high street lenders and partially guaranteed by the government.

The score should also be published, along with the name of the company that has access to CLBILS and CCFF, the MP said.

Companies that are willing to work with HMRC to lower their risk rating should have access to the regulations, Ms Hodge said.

On Thursday, the government is set to publish the full list of companies that haven't benefited from the CCFF, however, Ms. Hodge said they should go further.

“Why not publish information for any company that has received public loans, tax relief or bailouts during the crisis?

"For example, it should be clear what large companies have demanded in terms of the Job Retention Scheme and how much they have received."

She added: "Elected officials, law enforcement, civil society and the media should be able to appeal to those who & # 39; t benefit from & # 39; the public stock exchange."

The treasury did not immediately respond to requests for comment.


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