MPs launch two small business inquiries

Not one, but two powerful parliamentary committees have launched inquiries into protection for small businesses in the wake of Carillion’s collapse and the RBS’ GRG scandal. Advertisement The Treasury Committee’s inquiry will examine the lessons to be learned from RBS’ Global Restructuring Group (GRG) scandal, and more broadly at the state of the market for SME finance. The GRG was a unit within RBS which ostensibly aimed to help the taxpayer-owned bank’s struggling small business clients. But leaked internal memos exposed a cutthroat culture, enabled and encouraged by RBS’s leadership, where staff were encouraged to raise fees on struggling clients to "leverage an upside". Ultimately only one in every 10 businesses in GRG's care returned to normal banking relations. Adjacent to the Treasury inquiry, the Business, Energy & Industrial Strategy (BEIS) Committee will pick apart the catastrophic Carillion collapse. One of the UK’s biggest government contractors, Carillion’s demise this January left 30,000 small firms unpaid. Creditors are only expected to recover 0.8 to 6.6 pence in the pound.
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