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John Glen MP, the economic secretary to the Treasury paid tribute to the Finance & Leasing Association (FLA) at last week’s FLA Virtual Christmas Networking Drinks Reception. He also warned of a long road to recovery for the UK economy.

Acknowledging that it has been a “tough year” for FLA members Glen stressed: “I am fully aware of your efforts, often at great speed, to provide forbearance to customers who face, and continue to face, financial difficulties as a result of the pandemic.

“In fact, I understand that customer requests for help from FLA members were 1,400% higher at the end of March than they were just a few weeks earlier but at the same time the credit you’ve continued to distribute has helped to protect jobs and provided much needed capital for growth.”

Pretty astonishing

Glen added that the numbers are “pretty astonishing”. “To date,” he said, “your members have processed more than two million payment holiday requests by UK customers helping people and families manage their finances at a time of crisis. In other words, you have stepped up to the plate demonstrating as an industry a real commitment to your customers.”

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Stephen Haddrill, director general of the FLA, who has just completed his first year in post, said that then was “a different age – when we could take so much for granted, but that has now so radically changed.”

Haddrill stressed that despite the challenges wrought by Covid-19: “we have also found incredible strength, and achieved what would have previously seemed impossible.”

He added that during 2020 the association has worked closely with the Financial Conduct Authority (FCA) on its guidance on forbearance and on the reform of regulation. It has also worked with the government, the Bank of England and the British Business Bank on improving support schemes for business and liquidity for lenders.

“At the same time,” he said, “we have forged stronger links with other trade associations, with consumer groups and with parliamentarians, making a reality of our commitment to building trust and to collaboration.”

Support for businesses to continue

Glen confirmed that the UK chancellor has confirmed a further extension to the Coronavirus Business Interruption Loan, Coronavirus Large Business Interruption Loan, the Bounce Back Loan Scheme, and the Future Fund - insuring there is enough support for those businesses that need it.

“Importantly,” he added, “the extension of these schemes to a single date, that is the 31 January 2021, means even more businesses will be able to benefit. As I said, the pandemic has caused exceptional hardship for individuals, families and businesses across the UK and its impact will be felt for a while yet. As the chancellor told the House of Commons last week, the health emergency is not yet over and our economic emergency has only just begun.”

Haddrill concluded: “Just to give you a quick flavour of our priorities, we will campaign on net zero and electric vehicles to make sure you and your customers are involved in that transformation. We will push for regulatory reform to support that transformation, which will allow for more innovation and better market access for consumers. We will champion the contribution of asset finance to the economy and the importance of this type of lending to the recovery.

“While we have not achieved everything that we wanted this year, we remain ambitious for next year and will press for reform of the Consumer Credit Act, reform of the FOS, and better support for liquidity in a crisis from the BoE and BBB. With your help we can look forward with confidence.”

The FLA event was sponsored by GMG Asset Valuation and delegates also heard from Annie Hall, senior corporate partnerships manager at Depaul, about the valuable work that the charity is currently doing for the young people who sleep rough on the streets of London. https://uk.depaulcharity.org