Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
Limited local authority input and outdated data contributed to COVID grant payment errors.
Conclusion
The LGA informed us that local government had little or no input into the government’s work on the design of the grant schemes up to the point of the initial announcements.26 DBT told us many of the early grants were paid automatically using business rates data held by local authorities.27 However, local authority data such as bank details or even who was occupying a property were sometimes out of date, leading to payments made in error.28 The LGA pointed out that such data issues were particularly likely where businesses received 100% small business rates relief.29 HM Treasury described it as a “fair criticism” that at the start of the schemes they had overestimated the quality of this data.
Government Response Summary
The government will write to the Committee by Spring 2024, detailing proposals to improve understanding of small businesses across sectors and strengthen mechanisms for receiving and acting on their feedback.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: Spring 2024 3.2 The department will, as requested, write to the Committee detailing proposals to improve understanding of small businesses operating in different sectors and on strengthening mechanisms for receiving and acting upon feedback from this segment of the business community.