UK Gov't Criticized for Extending Cheap Loans to Big Firms

The UK government is under fire for extending over $20 billion in cheap loans to 53 well-known firms.

German chemical giant BASF, which only employs around 850 people in the UK, was given the biggest single loan of around $1.27 billion.

Meanwhile, almost $2.54 billion were lent to the UK's biggest airlines, with Ryanair and EasyJet each borrowing $763 million, and IAG and Wizz Air lent $381 million each.

The list of 53 firms includes some household names such as M&S, Asos and Nissan, John Lewis, and Tottenham Hotspur.

The loans prompted complaints from environmental campaigners who say the money should have been lent with conditions attached.

Senior Labour MP Margaret Hodge called the loans "flagrant abuse of public money."

But the Treasury said their objective was to protect hundreds of thousands of jobs.

The Corporate COVID Financing Facility (CCFF) of the Bank of England was created to help large firms with a big impact on the UK economy.

It is among many schemes designed to lend money to businesses affected by the coronavirus pandemic.