Source · Select Committees · Public Accounts Committee

Recommendation 21

21 Accepted

DBT has established a specialist grants directorate to improve design and delivery.

Conclusion
When we asked about the current situation, DBT told us it now has a specialist business grants and investment directorate of 120 people with 30 working on grants, which it describes as a centre of excellence. It highlighted that members of the grants team have extensive experience in delivering grant schemes such as the Regional Growth Fund.46 In a letter after the session, DBT clarified that 14 members of the grants team 35 Qq 82–83 36 C&AG’s Report, para 2.14 37 Letter from Philip Duffy, HM Treasury to the Public Accounts Committee, dated 17 May 2023 38 Qq 24, 117; C&AG’s Report, Figures 3 and 4 39 Q 79 40 Qq 9, 15, 53, 83, 95, 100–101 41 Q 117 42 Q 102; C&AG’s Report, paras 2.9 and 2.11 to 2.13, and Figure 10 43 C&AG’s Report, para 2.14 44 Qq 82–84 and 117; C&AG’s Report, para 2.15 and Figure 3 45 Q99; C&AG’s Report, Figure 8 and para 2.20 46 Qq 2, 9, 17, 39–41 Local authority administered COVID support schemes in England 13 work on assurance and debt recovery.47 DBT was keen to impress on us the difference that this increased capacity within a specialist unit had made. Examples we were given included specialist grant and counter-fraud input for policy teams designing grants, a standard set of documentation available for customisation, greater focus on the clarity of criteria and definitions, being able to think about the detail of the end-to-end grants process and build this into guidance from the start, and greater capacity to engage with local authorities during both scheme design and delivery.48 47 Letter to the Chair of the Public Accounts Committee from Gareth Davies, Permanent Secretary, Department for Business and Trade, 25 May 2023 48 Qq 17, 82–83, 89, 91, 95–96 14 Local authority administered COVID support schemes in England 2 Building on the experience Understanding impact
Government Response Summary
The government confirms the recommendation is implemented, stating DBT has established a new Grant Delivery Directorate to centralise and oversee the design, development, and delivery of all new DBT Grant Schemes. This directorate aims to protect public money, combat fraud, and ensure value for money, while sharing best practices.
Government Response Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 DBT has created a new Grant Delivery Directorate (GDD) as part of the Corporate Services Group. The benefit of a centralised team is achievement of a best-in-class delivery service with economies of scale in terms of resourcing; providing long-term grant delivery capacity. 4.3 The GDD team will oversee the design, development and delivery of all new DBT Grant Schemes, delivering a consistent approach. The approach will protect public money and recover funds where necessary, monitor all awards and combat fraud; and ensure value for money grant delivery for all schemes. 4.4 The GDD continues to work closely with the Government Grant Management Function within Cabinet Office who will identify and make improvement recommendations. Lessons learned will be shared and case studies provided for wider discussion where appropriate. Throughout DBT will seek to remain compliant with GOVS15 Functional Standard for Grants and the Grants Functional Blueprint. 4.5 Opportunities to share best practice and experience with the wider grant community incorporating COVID-19 scheme lessons learned will be instigated and exhibited, including via the Cabinet Office Grant Champions Forum, and learning from anticipated Cabinet Office Emergency Situation Grants guidance implemented for future schemes. 4.6 DBT anticipates publication of the Ipsos C19 evaluation report later this autumn with wide dissemination to partners, stakeholders and other government departments.