HC Deb 11 June 1991 vol 192 cc527-8W
Mr. Cousins

To ask the Secretary of State for Employment if he will give the number of loans, the total sums outstanding and the average size of loan outstanding in each year since 1981 under the loan guarantee scheme.

Mr. Forth

The number of loans currently outstanding is 11,310, but this cannot be broken down by year. Information on sums outstanding and average size of loan outstanding are commercial details between lenders and borrowers and not available to the Department.

Mr. Cousins

To ask the Secretary of State for Employment if he will give the premiums for the guarantees issued under the loan guarantee scheme in each year since 1981, the income derived from the payment of such premiums and such income net of defaults in each year since 1981.

Mr. Forth

The premium rates for guarantees issued under the loan guarantee scheme are:

Per cent.
1981 to May 1984 3.0
June 1984 to March 1986 5.0
April 1986 to date 2.5

Table A
Year
Area 1986 1987 1988 1989 1990 1991
01 South West 45.0 45.0 42.5 43.0 45.0 46.0
02 South 37.5 37.5 34.5 32.0 34.0 37.5
03 South East 45.5 47.0 47.0 45.5 47.0 46.0
05 London North 35.5 34.0 33.0 32.5 30.5 32.5
06 London South 35.0 34.0 37.0 39.0 38.5 38.5
07 East Anglia 41.0 31.5 28.5 31.5 32.0 35.5
08 North Home Counties 49.0 47.5 44.5 42.5 44.5 44.5
09 East Midlands 34.0 34.0 33.5 35.0 37.0 41.5
10 West Midlands 51.0 47.0 44.0 42.0 44.5 50.5
11 Wales 52.0 50.0 46.5 46.0 50.0 53.0
12 Marches 36.5 35.5 35.0 36.5 43.5 39.5
13 North Midlands 36.0 34.0 32.0 35.0 38.0 42.0
14 South Yorkshire and Humberside 32.5 31.0 28.0 33.0 34.0 36.5
15 West and North Yorkshire 59.0 52.5 52.0 50.0 56.0 59.0
16 Greater Manchester 39.0 42.5 40.0 37.5 42.0 47.0
17 Merseyside 35.0 31.0 29.5 28.0 33.0 37.0
18 North West 34.0 30.0 27.0 34.5 35.5 33.5
19 North East 36.0 35.0 28.5 28.5 34.5 38.0
20 Scotland East 42.0 46.0 45.5 46.5 53.5 55.0
21 Scotland West 31.0 32.0 33.0 28.5 27.5 35.0
Total 806.5 777.0 741.5 747.0 800.5 848.0

For loans within inner city task force areas, introduced in June 1988, the premium rate is 2.0 per cent. (2.5 per cent. to March 1990).

Information on income prior to the Department of Employment becoming responsible for the scheme is not available. For subsequent years income derived from premia payments was:

£ million
1985–86 5.4
1986–87 3.8
1987–88 2.9
1988–89 2.6
1989–90 2.8
1990–91 3.3

The net cost of the scheme has been:

£ million
1985–86 27.1
1986–87 11.2
1987–88 3.6
1988–89 3.8
1989–90 5.6
1990–91 16.5