Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Accepted
Government lacked contingency plans for emergency country-wide business support schemes.
Conclusion
When the pandemic started, the government did not have contingency plans for the country-wide emergency business support schemes of the kind that it quickly decided were needed.59 HM Treasury told us that there had not been advance planning for a national lockdown. DBT said frankly that the scale and speed of business support payments that took place had been “inconceivable” and “not within our frame of reference” prior to the pandemic, while HM Treasury described the scale of business grants as “not on anyone’s radar at all”.60 We questioned witnesses about whether a viral illness with widespread economic impacts, both directly and because of public health restrictions, was really so unforeseeable. DBT suggested this was ultimately a matter for the COVID-19 inquiry.61
Government Response Summary
The government agrees with the finding and commits to considering IPSOS evaluation findings, anticipated guidance from Cabinet Office and HM Treasury, and recommendations from NAO and GGMF reports when planning future schemes and contingencies by Spring 2024. DBT will also enhance understanding of local government capabilities.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: Spring 2024 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. 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. 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.