Tag: Treasury

The press release issued by HM Treasury on 9 March 2023.

The UK has announced its support of Ajay Banga for World Bank Group President.

“The UK, a long-standing partner of the World Bank, has announced its support of Ajay Banga for World Bank Group President. Mr Banga brings decades of experience leading global organisations, and a strong track record in establishing private – public partnerships. He will bring energy to the World Bank Group as it steps up its effort to tackle global challenges from extreme poverty to climate change.

“The Development Minister Andrew Mitchell and Chancellor of the Exchequer Jeremy Hunt met Mr Banga to discuss UK priorities for the World Bank and mobilising more resources, including from the private sector.
“The UK has played a leading role in shaping the Bank since its inception, as the joint-fifth largest shareholder of the International Bank for Reconstruction and Development (IBRD) and the third largest contributor to the International Development Association (IDA). The Bank will be a close partner in delivering the three-pronged approach to international development set out by Andrew Mitchell.

“Reflecting on Mr Banga’s recent visits to Côte d’Ivoire and Kenya, both of whom have since endorsed his candidacy, as well as the recent support of India, Andrew Mitchell reiterated the importance of engaging with, listening to, and delivering for all the countries that borrow from the World Bank and for the world’s poorest people – something that has always been a key priority of the UK.

“With the publication of the UK’s Women and Girls Strategy, Minister Mitchell expressed his hope that Mr Banga will be a proud advocate for gender equality and the empowerment of all women and girls, helping secure sexual and reproductive health and rights in developing countries.”

The press release issued by HM Treasury on 9 March 2023.

James Ireri, 44, from Surrey, has been banned for seven years after abusing two different Covid loan schemes during the pandemic.

Ireri was the director of Safi Care Ltd, which traded as a recruitment business from Surrey, supplying staff to care homes, from its incorporation in February 2015 until it went into liquidation in August 2021. The company had first traded as Safi Services Ltd until March 2016.

In May 2020, Ireri applied for a £50,000 Bounce Back Loan – the maximum amount allowable – for the company.

Bounce Back Loans were a government scheme to support businesses during the COVID-19 pandemic, whereby companies could apply for loans of up to 25% of their 2019 turnover, up to a maximum of £50,000.

Yet in August 2020, Ireri applied for another loan of £100,000 on behalf of Safi Care Ltd, this time from a different lender, and through a different Covid support scheme, the Coronavirus Business Interruption Loan.

Under the rules of the Covid loan schemes, eligible businesses were able to apply for a single loan under one or the other of the schemes, but not both. However, a business could obtain a second loan if the money was used to repay the first in full.

But when Safi Care Ltd went into liquidation in August 2021, the company owed more than £231,500, including the full amount of both loans.

An investigation by the Insolvency Service was triggered, but Ireri failed to provide adequate company accounts and investigators were unable to determine whether Safi Care Ltd had ever been eligible to apply for the initial Bounce Back Loan, based on the company’s 2019 turnover.

The lack of company books also meant that Ireri was unable to prove that he had used the loan money for the economic support of the business – another condition of the scheme.

Investigators discovered that more than £491,300 had been withdrawn from the company bank account between May 2020, when the first loan was received, and July 2021, shortly before Safi Care went into liquidation, including more than £80,000 for personal spending and around £93,900 of transfers into Ireri’s personal bank accounts.

The Secretary of State accepted a disqualification undertaking from James Ireri after he did not dispute he had caused Safi Care Limited to breach the terms of two Covid Support loans by failing to repay the Bounce Back Loan after obtaining the Interruption Loan, and by failing to provide adequate evidence of the company’s turnover or how the loan funds were used.

His ban started on 8 December 2022, and lasts for seven years. The disqualification prevents him from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

Neil North, Deputy Head of Investigation at the Insolvency Service, said:

“Bounce Back Loans and Covid Business Interruption Loans were designed to provide vital support for viable businesses through the pandemic. James Ireri abused not one, but two of these schemes.

“His ban should serve as a warning to other directors who misuse financial support available to companies that the Insolvency Service is able to bring your actions to account and remove you from the corporate arena.”

The press release issued by HM Treasury on 9 March 2023.

Experts appointed to identify best practice in turning university research into commercial success.

• Professor Irene Tracey CBE and Dr Andrew Williamson appointed to lead review into turning university research into commercial success.
• The independent review will identify best practice in the field to promote innovation and grow businesses of the future, as part of the Chancellor’s vision to nurture the world’s next Silicon Valley.
• Both experts will work hand-in-hand with universities, investors, and founders to advise government on how to continue to capitalise on the UK’s world-leading university research.

Two leading university and investor experts have been appointed to identify best practice in turning university research into commercial success, in order to help the UK fulfil its ambition to become a Science and Technology Superpower.

Professor Irene Tracey CBE, Vice-Chancellor of the University of Oxford and member of the Medical Research Council of UK Research and Innovation, and Dr Andrew Williamson, Chair of the Venture Capital Committee at the British Private Equity & Venture Capital Association (BVCA), will consult with universities, investors, and founders to identify best practice in university spin-outs – companies born through university research.

The financing of innovative science and technology companies like these is a key tenet of the UK Science and Technology Framework, with a view to strengthening the pipeline of high-quality science and technology businesses and spin-outs that drive growth in the economy across this decade.

The review aims to evaluate performance across universities and identify best practice in spin-outs and licencing deals for university intellectual property to promote the continued growth of the sector, which upholds the UK’s role at the forefront in seeding and growing innovative businesses of the future.

The UK university sector is a world-leader, playing an integral role in supporting economic growth and fuelling innovation across the country. The commercialisation of its research has also been on an upward trajectory over the last decade – investment in UK university spin-outs has increased more than five-fold to £5 billion in 2021.

The review launched today will seek to build upon those strengths, harnessing them to boost global competitiveness with other leading spin-out regimes like the US.

Chancellor of the Exchequer Jeremy Hunt said:

“Our universities are among the world’s best and are crucial driving forces for innovation and economic growth.

“We want the UK to be the world’s next Silicon Valley and to get there the government must help spin-outs to thrive. The expertise of Professor Tracey and Dr Williamson will be invaluable in ensuring we have the right support in place.”

Secretary of State for Science, Innovation and Technology Michelle Donelan said:

“UK universities are long-established global leaders in research and it’s no accident that four of the world’s top ten universities call Britain home.

“However, our world-leading research apparatus hasn’t always translated into the raft of game-changing business giants you would expect. We can and will do more to support university spin-outs to become global business titans that generate highly-skilled jobs and rapid economic growth for the UK. This review will clearly set out the actions we can take to make sure the UK is the ultimate incubator for world class innovative business.”

Professor Irene Tracey CBE and Dr Andrew Williamson said:

“We are delighted to be involved with this timely and important review. We recognise the fundamental role that university spin-outs play in driving UK economic growth and in stimulating an entrepreneurial culture and ecosystem in Britain.

“Now is the time to review what the best processes are for both creating and structuring spin-outs so that we’re ready for this anticipated expansion in innovation clusters around the country. We look forward to partnering with stakeholders from the academic, entrepreneurship, and investment communities to identify opportunities to increase the impact of this important sector of our economy.”

Professor Tracey and Dr Williamson will report back to the Chancellor and the Secretary of State for Science, Innovation and Technology in the summer.

The press release issued by HM Treasury on 9 March 2023.

A new chair has been tasked to lead a wide-ranging review into the UK’s research and investment landscape – which helps attract some of the largest companies in the world.

• A new review into the UK’s research and investment landscape will formally kick off on Monday (13 March) – City Minister Andrew Griffith is expected to announce tomorrow in a speech at FIX trading
• Rachel Kent, senior partner in financial services at Hogan Lovells, has been announced as chair of the Review.
• Move comes just weeks before Financial Services and Markets Bill expected to receive Royal Assent – enabling us to deliver more of the Edinburgh Reforms

The review, which was first announced as part of the government’s Edinburgh Reforms, will formally kick off on Monday 13th March. It seeks to develop concrete steps the government can take to enhance London’s status as Europe’s leading listings destination, and only second globally.

Rachel Kent, an expert and senior financial services partner at leading global law firm Hogan Lovells, has been tasked by City Minister Andrew Griffith MP with leading the review, and has been asked to report within three months.

Speaking at the FIX trading conference, City Minister Andrew Griffith is expected to say:

Research matters – and the right depth and breadth of investment research is vital to ensure markets operate well and companies obtain the valuations they deserve.

I am therefore pleased to announce City expert, Hogan Lovells Partner Rachel Kent, will spearhead the Investment Research Review.

With her experience and knowledge of the sector, as well as the regulatory framework, I have every confidence Rachel will do a fantastic job at speedily convening the sector, looking at the evidence and finding solutions to improve the UK market for investment research.

I look forward to receiving her recommendations.

Investment research provides investors with information that allows them to understand a company’s business model, performance, and risks, and therefore to assess its value as an investment.

Concerns have been raised about the quality and quantity of investment research produced in the UK as compared to other jurisdictions – particularly for certain sectors like tech and life sciences – and that this could undermine valuations and therefore the attractiveness of the UK as a place to list and make it harder for companies to access private capital.

Through the review, the UK is seeking to identify and address some of these concerns, to ensure London maintains its unique attractiveness as a listing’s destination.

Attracting some of the largest companies in the world to list in the UK supports a broader ecosystem providing high-skill, and high-paying jobs for Brits up and down the country – widening opportunity and increasing revenues for the public purse.

Addressing these issues will help to deliver on the government’s plan to grow the economy and become a leading technology superpower.

The press release issued by HM Treasury on 8 March 2023.

Michael Andrew Higgins, 56, and Dean Emanuel Miller, 41, both from Sheffield, have been disqualified as company directors for a total of 17 years after separate Insolvency Service investigations found that through their respective companies they had each abused the covid loan support scheme.

Michael Higgins was sole director of Steel Rigging Ltd, which traded as a company providing driving services for vehicles on outside TV broadcasts, from its incorporation in March 2015 until it went into liquidation in December 2021.

In November 2020, Higgins applied for a £20,000 Bounce Back Loan to support his business through the Covid-19 pandemic, stating on the application that the company’s turnover for 2019 had been £80,000.

Bounce Back Loans were a government scheme to support businesses during the Covid-19 pandemic, in which companies could apply for loans of up to 25% of their 2019 turnover, to a maximum of £50,000.

Under the rules of the scheme, any loan money allocated was to be used for the economic benefit of the business, and not for personal purposes.

But Steel Rigging Ltd went into liquidation in December 2021, owing £23,900 – including the full amount of the Bounce Back Loan – and prompting an investigation by the Insolvency Service.

Investigators found that the company’s turnover had in fact been just under £40,000 in financial year ending 31 March 2019, and around £43,100 for the following financial year, meaning that the company had claimed at least £9,200 more in loan money than it was entitled to.

They also discovered that Higgins had transferred the £20,000 to his own bank account over a period of 3 weeks in January and February 2021, without any evidence to show that these funds were used for the benefit of Steel Rigging Ltd.

And in a separate case, Dean Miller, sole director of IBODYTALKS Ltd, an online health and fitness business also based in Sheffield, applied for a £42,000 Bounce Back Loan for his company in May 2020.

Miller stated in the application that the firm, which was incorporated in April 2019, had been dormant until April 2020, and used a predicted turnover of £168,000 to apply for the loan. Under the rules of the scheme, businesses incorporated after 1 January 2019 were asked to estimate their turnover.

But the company went into liquidation in October 2021 owing more than £40,000, triggering an Insolvency Service investigation.

Investigators discovered that IBODYTALKS Ltd had in fact been trading since December 2019, after finding that five deposits totalling £588 had been made into the company bank account between then and April 2020.

They calculated that IBODYTALK’s projected turnover for the year could only have been around £101,100, meaning that it had received more than £16,700 of loan money to which it had not been entitled.

Investigators also found that in June 2020, a month after the company received the loan, Miller transferred £41,000 to a connected company, and did not provide any evidence to show the money was used for the benefit of IBODYTALKS Ltd.

The Secretary of State for Business, Energy and Industrial Strategy accepted disqualification undertakings from the two directors, after both did not dispute that they had caused their companies to receive Bounce Back Loans to which they were not entitled, and failed to show that the money had been used for the economic benefit of their companies..

Michael Higgins’ disqualification lasts for 8 years and started on 3 January 2023. Dean Miller was banned for 9 years, beginning 1 February 2023. The disqualifications prevent them from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

Lawrence Zussman, Deputy Head of Company Investigations at the Insolvency Service, said:

Covid support schemes were a lifeline to businesses across the UK, protecting jobs and preserving businesses.

Michael Higgins and Dean Miller abused the scheme, and their lengthy bans should serve as a reminder to others that the Insolvency Service will not shirk from its responsibility in taking action in order to protect the public and the taxpayer.

The press release issued by HM Treasury on 6 March 2023.

Takeaway owner from Oldham and company director from Kings Langley in Hertfordshire falsely claimed Bounce Back Loans totalling around £69,000 before dissolving their companies.

Rukia Begum, 46, from Oldham, and Simon Grant Gorgin, 63, from Kings Langley, have been disqualified for a total of 22 years after each separately claimed tens of thousands of pounds in covid support loans to which their companies were not entitled.

Begum was the sole director of New Polash Oldham Ltd, which traded as a takeaway from its incorporation in September 2018 until the company was dissolved in October 2020.

In May 2020, Begum applied for a £35,000 Bounce Back Loan for New Polash, stating that the takeaway’s turnover for 2019 was £154,000.

Bounce Back Loans were a government scheme to support businesses during the Covid-19 pandemic, in which companies could apply for loans of up to 25% of their 2019 turnover, to a maximum of £50,000.

Under the rules of the scheme, companies had to have been trading by 1 March 2020, and be actively trading at the time of the application. Any loan money allocated was to be used for the economic benefit of the business.

Two months after receiving the Bounce Back Loan, Begum applied to dissolve the company. She signed the application form, despite this stating that a failure to notify any creditors was an offence. When the Insolvency Service began its investigation in July 2020, the company owed the full amount of the loan.

Investigators found that Begum had exaggerated the turnover of her company by around £110,400, and that New Polash Oldham Ltd was only entitled to a Bounce Back Loan of around £11,000 based on the takeaway’s actual turnover.

She had also allowed the takeaway to continue trading in the three months before her application to dissolve New Polash Oldham Ltd – a breach of the Companies Act 1986.

In a separate case, Simon Gorgin, applied for a £45,000 Bounce Back Loan for his company, P3 Estates Ltd, in May 2020. Gorgin was sole director of the company, from its incorporation in April 2010 until it was dissolved in December 2021.

Yet Gorgin stated on the loan application that P3 Estate’s turnover in 2019 had been £180,000. A loan of £45,000 arrived in the company’s bank account the following day.

But a month earlier, in April 2021 he had applied to dissolve the company and by July of the same year P3 Estates still owed the full amount of the loan, prompting an investigation by the Insolvency Service.

Investigators discovered that P3 Estate Ltd had never traded, and had not been trading at the time of the loan application and so had not been entitled to receive any money under the scheme.

They also found that three days after the loan arrived in the company’s account, Gorgin had further breached the rules of the scheme by transferring the full £45,000 to his own bank account.

And Gorgin failed to notify the bank from which he had borrowed the money that he had applied to strike off the company – breaching a legal obligation for directors to notify creditors when dissolving their business.

The Secretary of State for Business, Energy and Industrial Strategy accepted disqualification undertakings from the two directors, after both did not dispute that they had caused their companies to receive Bounce Back Loans to which they were not entitled.

Simon Gorgin also did not dispute he had failed to cause his company to falsely apply for a Bounce Back Loan when it was not actively trading, failed to ensure the money was used for the economic benefit of the business and failed to give the required notice to the bank of the dissolution of his business.

Rukia Begum’s disqualification lasts for 10 years and starts on 9 February 2023. Simon Gorgin was banned for 12 years, starting on 5 January 2023. The disqualifications prevent them from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

A compensation order is being recommended to recover the money from both directors.

Peter Smith, Deputy Head of Dissolved Company Investigations at the Insolvency Service, said:

Bounce Back Loans were designed to help businesses to survive the pandemic. Rukia Begum and Simon Gorgin abused the scheme and took taxpayers’ money at a time when many businesses were in genuine need.

Their lengthy bans should stand as a warning that we will take action against directors who abuse government support schemes.

The press release issued by HM Treasury on 1 March 2023.

Jonathan Hall has been reappointed as an external member of the Financial Policy Committee (FPC), the Chancellor of the Exchequer, Jeremy Hunt has announced.

Jonathan was appointed to the FPC in June 2020 and started his role at the end of August 2020. His first term as an external member of the Financial Policy Committee ends on 31 August 2023. His second 3-year term will end on 31 August 2026.

He is a member of the Founders Circle of the Institute for the Future of Work (IFOW) and is in the process of completing a PhD in Philosophy of Mind.

Jonathan helped establish Eisler Capital where he was a Portfolio Manager. He has also worked as an Advisory Director at Goldman Sachs where he sat on the Board and Executive Committee of ISDA, the Board of Tradeweb, the Financial Stability Board Market Participants Group on reforming Interest Rate Benchmarks, and the Bank of England Working Group on Risk-Free Reference Rates.

Prior to this, Jonathan spent 10 years at Goldman Sachs in London and New York. He became a Managing Director in 2006 and Partner in 2008. Before that, Jonathan worked at Credit Suisse Financial Products in London, Tokyo, Sydney and Hong Kong.

The press release issued by HM Treasury on 28 February 2023.

A national hub for fintech excellence will formally launch at an event in Leeds today, seeking to boost the sector’s growth and helping it to achieve truly global scale.

• a new government-backed national hub for fintech will formally launch at an event in Leeds on Tuesday (28th), boosting growth and innovation in the UK
• the Centre for Finance, Innovation and Technology (CFIT) will champion the UK’s world-leading sector, helping firms to achieve truly global scale
• the UK Infrastructure Bank has today (28 February) also announced that it is expanding its presence at its Leeds office – as it gears up to create around 280 job

The Centre for Finance, Innovation and Technology (CFIT) is the first of its kind in the world and is backed by £5.5 million of Treasury and City of London Corporation funding.

This new body seeks to build on the dominance of the UK’s fintech sector – that supports around 2,500 firms, tens of thousands of jobs in the UK, and is second globally only to the US for fintech investment – powering ahead of economic behemoths such as China and India.

It will provide a much-needed boost to people and businesses up and down the country, enabling them to benefit from new waves of technological change and innovation – widening consumer choice, cutting costs, and increasing efficiency for firms.

Economic Secretary to the Treasury, Andrew Griffith said:

The UK is a world-leading location for fintech growth and investment – it’s a real British success story and one that’s spread across the whole UK. Today’s launch of the Centre for Finance, Innovation and Technology doubles down on this, boosting prosperity and investment in exciting cities for growth and innovation such as Leeds.

It’s also great to see the UK Infrastructure Bank delivering on its mission to invest in the clean energy revolution and on much needed infrastructure – using its £22 billion of taxpayers’ money to help communities across the UK.

Charlotte Crosswell OBE, Chair of CFIT, said:

The launch of CFIT today represents a significant moment for the UK’s fintech sector and our economy more widely. This organisation will enable us to come together as a sector to start breaking down barriers that the fintech sector is facing while creating a clear path for our homegrown fintech companies to achieve global scale, impact and success.

Today’s announcement marks an important first step in our work supporting the growth and development of the UK fintech sector by empowering its talented innovators and trailblazers in every corner of the country.

Ron Kalifa, Chairman of Network International and author of the Kalifa Review of UK Fintech, said:

I am thrilled to see the Centre for Finance, Innovation and Technology (CFIT) – one of the key recommendations of the 2021 Kalifa Review – launch in Leeds today.

The Centre will be instrumental in fostering collaboration between industry, academia and policymakers, promoting innovation, and turbo-charging the adoption of new technologies for businesses and consumers. I have no doubt that it will enable the UK’s fintech sector to become more competitive, and I look forward to seeing the impact it will have across the UK in the weeks, months and years to come.

The Centre has been established in response to Ron Kalifa’s Review into UK fintech. Since this report was published in 2021, government has been working across industry and regulators to deliver on the recommendations, including introducing a fast-track visa system for fintech scale ups, implementing an FCA scale box allowing innovators to trial new products, and reforming our listings regime to maintain the UK’s position as Europe’s dominant capital markets hotspot.

At launch event CFIT will announce new coalitions of experts from across finance, technology, academia and policy-making. They will focus on helping fintechs achieve truly global scale, building on the UK’s recent success which saw the UK grow from two ‘unicorn’ firms (over $1 billion valuation) in 2020, to today where we have more than 20 – almost half of all the fintech unicorns in Europe.

CFIT will announce the establishment of financial innovation hubs with comprehensive reach across the UK’s nations and regions – including in key growth centres such as Leeds. The city has seen enormous fintech growth since 2020, with its number of fintech firms more than doubling to 107, and valuation of firms doubling to reach £710 million – supporting over 7,500 jobs.

CFIT’s Chair Charlotte Crosswell will also announce a range of new partnerships she and her team have agreed to support CFIT’s growth ambitions. Further details on these new partnerships, and which areas will be established as innovation hubs will be set out at the event.

Ahead of the launch, the Economic Secretary, Andrew Griffith MP, will be visiting the UK Infrastructure Bank’s (UKIB) site in Leeds, where he will officially open expanded office space for UKIB staff, as they gear up to take on around 280 staff. The Bank currently has around 180 staff, with an increasing number of permanent employees.

Since its introduction 20 months ago, the bank has announced ten significant investments in sectors ranging from solar energy to fibre broadband, and has crowded in £4.6 billion of private finance in the process.

The City of London Corporation Policy Chairman, Chris Hayward, said:

The UK’s fintech sector is a true British success story. The launch of the Centre for Finance, Innovation and Technology (CFIT) today will help to maintain our dominant position globally. I look forward to continuing to work in partnership with CFIT to further unleash the potential of this sector.

UK Infrastructure Bank CEO, John Flint said:

The fact we are anchored in Leeds is a key part of our identity. It aligns with our mission to drive up regional and local economic growth. It also makes us part of a growing movement, with many other significant organisations – for example, Channel 4, the Financial Conduct Authority, and the National Infrastructure Commission – establishing or expanding bases here. I am grateful to the Minister for helping us to mark this milestone, as we expand our presence in the city.

Today’s announcements deliver on the Chancellor’s ambition for the UK to become a technology superpower, as set out recently in his Bloomberg speech. And they deliver on the Prime Minister’s five priorities, helping to grow the economy.

The press release issued by HM Treasury on 20 February 2023.

Jane Ridley and Hughie O’Donoghue have been reappointed to the Royal Mint Advisory Committee (RMAC) today (20th February).

Both are existing members of the RMAC, having served two terms between 1st January 2015 and 31st December 2022.

Their third term will now conclude on 31st December 2024.

Economic Secretary to the Treasury, Andrew Griffith said:

“I am delighted that Jane Ridley and Hughie O’Donoghue have agreed to serve a third term on the Royal Mint Advisory Committee.

“Their expertise and experience serving on the Committee for a number of years has, and will continue to provide effective input into the development of UK coin design.”

The Royal Mint Advisory Committee on the Design of Coins, Medals, Seals and Decorations was established in 1922 and advises the Chancellor on new designs for United Kingdom coins. It also advises government departments on new designs for official medals and seals. Its members are appointed by HM The King on the recommendation of the Prime Minister.

The press release issued by HM Treasury on 15 February 2023.

Director of haulage company fraudulently applied for a £50,000 Bounce Back Loan and then applied to dissolve the company.

Kulwinder Singh Sidhu, 58, from Stanwell, has been sentenced to 12 months imprisonment, after pleading guilty to offences under the Companies Act and the Fraud Act, having abused the Bounce Back Loan financial support scheme in 2020.

Sidhu was director of Wavylane Ltd, a haulage company based in Stanwell, and which had been trading since 2010.

On 9 June 2020 Sidhu applied for a £50,000 Bounce Back Loan from his bank on behalf of his business. Under the Bounce Back Loan scheme, genuine businesses impacted by the pandemic could take out interest-free taxpayer-backed loans of up to a maximum of £50,000.

The loan was paid into the company bank account and on 26 June 2020 Sidhu filed paperwork with Companies House to have the business dissolved, having transferred the funds to his personal bank account within two days of receipt.

The striking-off application to dissolve the company was explicit that interested parties and creditors, such as a bank with an outstanding loan, must be notified within seven days of making an application to dissolve a company. The form also highlighted that failure to notify interested parties is a criminal offence, however Sidhu did not follow these rules.

The company was dissolved in October 2020, and was subsequently identified as likely Bounce Back Loan fraud by the Insolvency Service and cross-government counter-fraud systems.

The Insolvency Service investigation found that Sidhu had fraudulently overstated the company turnover in the Bounce Back Loan application, and within two days of receiving the money he had transferred it to his personal account before dispersing the funds to his son and another company.

He pleaded guilty to charges under the Companies Act 2006 and Fraud Act 2006 at Guildford Crown Court on 19 December 2022. He was sentenced on 13 February 2023 at Guildford Crown Court.

The court imposed a confiscation order for £50,000, and Sidhu has paid this in full.

In addition to the custodial sentence, Sidhu was also disqualified as a director for six years.

Julie Barnes, Chief Investigator at the Insolvency Service said:

Our action has ensured repayment of the loan money and taxpayers have not been left out of pocket.

Any other company directors who might be tempted into dissolving their business to try to keep public money they are not entitled to, should be aware they are risking a lengthy prison term.