DCMS management of COVID-19 loans

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 … Show more

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 for up to 25 years. Given that this is the first time the DCMS has managed a loan book of this size, the National Audit Office (NAO) has launched an investigation into its ability to do so. As well as seeking to understand how effectively the DCMS is able to manage its loan book, it will also question if there are appropriate measures in place to oversee the repayment process. The NAO’s report will seek to understand how the department has managed any challenges that have arisen from the process so far. The Committee previously examined the Culture Recovery Fund , publishing its findings in 2021. The Committee warned that the DCMS would need a clear plan for how it would oversee the fund, ensuring it had the skills and capabilities within the organisation to do so. The Committee also recommended the Department implement lessons from across Government to ensure the process could benefit from the successes of other comparable schemes. Using the findings of the NAO report, the Committee will take evidence from senior Department of Culture, Media and Sport officials, with likely focuses including: - How effectively the Department has been able to manage its loan book and the processes it has in place in order to do so; - If the Department has a long-term plan for managing loan repayments and maximising financial returns and; - What lessons, if any, could be learned from the Departments approach to the governance of loan repayments. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Show less