Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted in Part
Underinvestment in local authority IT infrastructure caused system shortcomings and payment errors.
Conclusion
Another source of error acknowledged by HM Treasury was that not every authority had automated systems in place from the start that could prevent duplicate payments. Many local authorities were relying on data and systems which could not be used to easily identify which businesses were eligible for grants. Local authorities were key partners in the delivery of many COVID schemes, but having faced financial pressures over recent years it is not clear how far investment in IT infrastructure has been maintained. The requirements of this grant scheme underline the impact of that underinvestment. HM Treasury described the shortcomings in local authority systems as another thing that it should have known but did not know at the time.30
Government Response Summary
The government accepts the recommendation with a target implementation date of Spring 2024, committing to account for evaluation findings and anticipated guidance when planning future schemes and contingencies. It will also enhance understanding of local government system capabilities through collaborative working when considering future scheme delivery options.
Government Response
Accepted in Part
HM Government
Accepted in Part
The government agrees with the Committee’s recommendation. Target implementation date: Spring 2024 6.2 The DBT will take account of IPSOS evaluation findings and best practice including anticipated guidance (Cabinet Office “Emergency Situation Grants” and the HM Treasury “Managing Debt in a Crisis” paper which are both currently being drafted) when planning future schemes and for contingencies. 6.3 In addition, recommendations from the pending National Audit Office and Government Grants Management Function (GGMF) Cabinet Office reports on future delivery will be considered as part of future contingency plans. 6.4 Through ongoing collaborative working, directly with local authorities and through the Local Government Association (LGA) contacts and the Department for Levelling Up, Housing and Communities Local Authority Funding Directorate, the department will seek to enhance the understanding of the capability of local government systems when considering future scheme delivery model options.