The UK government has paid $1.8 billion to banks that provided loans to small businesses during the Covid-19 pandemic that later turned fraudulent, Bloomberg reported.

Fraudulent pandemic-era loans cost UK $1.8 bn: Report

The United Kingdom has taken a significant step by removing the guarantees on £979 million ($1.2 billion) worth of loans extended to businesses during the Covid-19 pandemic, Reuters reported on Wednesday.

UK removes guarantees on £1 bn Covid loans. Here's why it matters

Lord Agnew, a Treasury and Cabinet Office minister, abruptly resigned from Boris Johnson's government on Monday afternoon in the House of Lords, claiming that the Department for Business, Energy, and Industrial Strategy had shown "lamentable" oversight of COVID loan schemes, resulting in large amounts of fraud.

UK anti-fraud minister resigns over govt’s ‘lamentable’ record in tackling COVID-19 fraud