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Select Committee · Public Accounts Committee

Lessons for government: monitoring and responding to companies in distress

Status: Closed Opened: 13 Dec 2023 Closed: 28 May 2024 17 recommendations 10 conclusions 1 report

Direct intervention in the private sector has generally been seen as a last resort by the Government, with private sector companies allowed to fail as part of the efficient working of markets and the economy. The Government’s approach in this area is now changing, with the pandemic, war in Ukraine and the energy crisis all …

Clear

Reports

1 report
Title HC No. Published Items Response
Twentieth Report - Monitoring and responding to companies i… HC 425 13 Mar 2024 27 Responded

Recommendations & Conclusions

2 items
6 Recommendation Twentieth Report - Monitoring and respo… Acknowledged

Set out updated approach to evaluating company distress cases and sharing lessons learned.

It is vital that the government evaluates and shares the lessons from these cases on a timely and consistent basis, regardless of whether the case resulted in government intervention. We have previously found that much of government activity and spending is not evaluated robustly, or at all. Government interventions in …

Government response. The government acknowledges that evaluation of company distress cases has not been formalised and will work with the Cabinet Office and UKGI to consider future changes and how to strengthen departmental evaluation requirements and share lessons. It also points to …
HM Treasury
20 Recommendation Twentieth Report - Monitoring and respo… Acknowledged

Government interventions often lead to prolonged involvement and unforeseen costs without clear exit strategies.

The NAO report has shown how intervening in companies can lead to unforeseen costs and government involvement over a period much longer than expected. Ensuring value for money requires careful consideration not just of short-term objectives but also of longer-term scenarios, including how and when the government may extricate itself …

Government response. The government agrees with the recommendation on planning for long-term scenarios and exit strategies for interventions, with a target date of July 2024. It highlights existing guidance and support from various departments and commits to shortly re-issuing the NAO's good …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
17 Jan 2024 Hannah Gray · UK Government Investments, Jess Glover · HM Treasury, Neil Johnson · Department for Business and Trade, Sir Gareth Rhys Williams CB · Cabinet Office View ↗

Correspondence

2 letters
DateDirectionTitle
6 Feb 2024 — Correspondence from Gareth Rhys Williams CB, Government Chief Commercial Office…
6 Feb 2024 — Correspondence from Jessica Glover, Director General, Growth and Productivity, …