Source · Select Committees · Public Accounts Committee

Recommendation 17

17 Accepted

Insufficient departmental understanding of small businesses resulted in ambiguous COVID grant guidance.

Conclusion
There were also consequences arising from insufficiently granular knowledge about small businesses within the departments. We asked officials about the way that scheme designs and initial versions of guidance were unable to provide clarity about whether or how a range of business types were covered.31 This lack of clarity prompted questions from businesses, local authorities and MPs that the government struggled to answer in a timely fashion. Guidance had to be revised or Frequently Asked Questions published, multiple times.32 HM Treasury told us they did their best to manage “dozens of complicated edge cases”; DBT pointed to improvements in late 2021 but accepted that “in the early phases of the crisis, the connection between the policy making and the delivery information was not as strong as we would have liked it to be.”33 DBT gave “wet-led pubs” and “substantial meals” as examples of categories that were ambiguous or needed clarification.34
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.