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Select Committee · Public Accounts Committee

DCMS management of COVID-19 loans

Status: Closed Opened: 31 Oct 2024 Closed: 16 Jun 2025 1 recommendation 24 conclusions 1 report

The COVID-19 pandemic placed enormous strain on the arts and sports sector, as many organisations were forced to close for prolonged periods. The Department for Culture, Media and Sport (DCMS) provided around £2.6 billion of support for organisations from 2020-22. A proportion of this support, £474 million, was provided in the form of loans repayable …

Clear

Reports

1 report
Title HC No. Published Items Response
20th Report - DCMS management of COVID-19 loans HC 364 2 Apr 2025 25 Responded

Recommendations & Conclusions

4 items
20 Conclusion 20th Report - DCMS management of COVID-… Acknowledged

£124 million of sports loans (57%) allocated to Premiership Rugby League clubs

The Department loaned £218 million in total to 83 sports bodies. Of this £124 million (57%) was loaned to the 13 clubs in the Premiership Rugby League, the top division of professional rugby union.49 We asked the Department whether it was appropriate to give so many loans to one professional …

Government response. The department is developing a comprehensive borrower engagement plan, building on existing strategies implemented by Loan Agents, guided by core principles that define the department’s approach to borrower engagement.
HM Treasury
21 Conclusion 20th Report - DCMS management of COVID-… Acknowledged

Three Premiership Rugby clubs receiving loans became insolvent, others remain financially fragile

We noted, however, that, by June 2023, three of these clubs had become insolvent before they had made any repayment of the loans of £41.9 million they had received (London Irish £11.8 million; Wasps £14.1 million; and Worcester Warriors £15.7 million).52 Written evidence we received from professional services group, Leonard …

Government response. The department is developing a comprehensive borrower engagement plan, building on existing strategies implemented by Loan Agents, guided by core principles that define the department’s approach to borrower engagement.
HM Treasury
22 Conclusion 20th Report - DCMS management of COVID-… Acknowledged

Department considered sector financial sustainability and actively supported professional rugby union's recovery.

We asked the Department if it thought about the financial sustainability of sectors as a whole, and not just of individual borrowers, when considering future insolvency projections. It confirmed that it did and cited the example of rugby union. It told us that it cared deeply about the insolvencies of …

Government response. The department is developing a comprehensive borrower engagement plan, building on existing strategies implemented by Loan Agents, guided by core principles that define the department’s approach to borrower engagement.
HM Treasury
23 Conclusion 20th Report - DCMS management of COVID-… Acknowledged

Department engaging with British Basketball Federation regarding franchising, funding, and loan repayment risks.

We asked the Department what it was doing with regard to professional basketball and the proposals by the British Basketball Federation to franchise out the running of the professional league which some have claimed is putting at risk the Department’s loans to some of the clubs. The Department replied that …

Government response. The department is developing a comprehensive borrower engagement plan, building on existing strategies implemented by Loan Agents, guided by core principles that define the department’s approach to borrower engagement.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
10 Feb 2025 Gareth Davies · National Audit Office, Gareth Davies · Department for Transport, Max Tse · National Audit Office, Nicola Hewer · Department for Culture, Media and Sport, Polly Payne · Department for Culture, Media and Sport, Rebecca Sheeran · National Audit Office, Susannah Storey · Department for Culture, Media and Sport View ↗

Correspondence

6 letters
DateDirectionTitle
12 Mar 2026 To cttee Letter from the Permanent Secretary at the Department for Culture, Media and Sp…
2 Apr 2025 From cttee Letter to the Permanent Secretary of DCMS relating to PAC report: DCMS manageme…
2 Apr 2025 To cttee Letter from the Permanent Secretary of DCMS relating to PAC report: DCMS manage…
27 Mar 2025 To cttee Letter from the Director General for Policy at the Department for Culture, Medi…
11 Feb 2025 To cttee Letter from the Permanent Secretary of the HM Treasury relating to the Local au…
11 Feb 2025 To cttee Letter from the Permanent Secretary for the Department for Culture, Media and S…