§ Mr. BrightTo ask the Secretary of State for Employment how many loans have been made under the loans guarantee scheme; what number of firms in receipt of such loans have failed; and what is the estimated cost of each job created by recipient companies under the schemes.
§ Mr. CopeFrom May 1981 to 31 October 1987, 18,633 guarantees have been issued under the scheme; 6,164 guaranteed loans have ended in default by borrowers. The net Exchequer cost per person leaving the unemployment count as a result of the scheme is estimated at approximately £400. This estimate uses information derived from a review carried out by Robson Rhodes in 1983–84. A further review of the effects of the scheme is currently being undertaken by National Economic Research Associates Ltd. and is expected to be completed in June 1988. The cost figures may be revised in the light of the review.