AAT has called on the UK Chancellor to write-off Coronavirus Bounce Back Loans to help Britain’s economic recovery.

The Bounce Back Loan Scheme (BBLS) has so far provided £38 billion of finance through more than a million loans to UK-based small businesses.

The repayments date have now been extended from six to 10 years, but AAT believe the Chancellor should now go one step further and write-off them altogether.

Some banks have predicted that up to 50% of BBLS borrowers will default. Although banks are responsible for any debt collection, the 100% Government guarantee means the taxpayer will pick up the bill for any failure to repay.

AAT’s head of public affairs and public policy, Phil Hall, said: “Extending the repayment period doesn’t solve anything, it just defers the problem.”