Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
Committee receives evidence on BEIS 2021-22 Annual Report and Accounts performance.
Conclusion
On the basis of the Department’s 2021–22 Annual Report and Accounts, and the Comptroller and Auditor General’s report therein, we took evidence from the Department of Business, Energy and Industrial Strategy about its performance in 2021–22.1
Government Response Summary
The government states that Business, Energy and Industrial Strategy can conclude recovery is unrealistic for certain debts due to business cessation, poor value for money, or reputational risk. DBT has also commissioned a Non-Executive Director to review assurance, reconciliation, and recovery activity for irregular payments, with a report due in Summer/early Autumn 2023.
Government Response
Accepted
HM Government
Accepted
The Government agrees with the Committee’s recommendation. Business, Energy and Industrial Strategy, can conclude recovery is unrealistic for the following reasons: • the business has ceased trading, with no residual assets and is not in administration; • recovery is poor VFM (the cost of litigation actions is higher than the debt) or • recovery is accepted as a significant reputational risk for DBT. The government set out the latest position to the Committee at a hearing in relation to the Local Authority COVID-19 schemes which took place on 11 May 2023, following the recent report by the National Audit Office. The DBT has asked one of the Non-Executive Directors to undertake a review of the ongoing assurance, reconciliation, and recovery activity in relation to irregular payments and will write to the Committee following the conclusion of this review. The review is aimed to conclude in Summer/early Autumn 2023.