Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Having sampled only 476 grants distributed by local authorities out of circa one million grants...
Conclusion
Having sampled only 476 grants distributed by local authorities out of circa one million grants made, the Department therefore has very little visibility of which businesses have benefited from these schemes.45 It cannot say whether many businesses in receipt of grants were eligible, and whether those that were both eligible and received grant funding received the right amount. The very limited assessment it has already done suggests ineligible businesses receiving grant funding, and some eligible businesses received a value of grant funding they were ineligible for. Neither furthers the policy objectives of these schemes, to support those businesses most in need, and the taxpayer also loses value for money. Using tools to prevent and detect fraud
Government Response
Not Addressed
HM Government
Not Addressed
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 Each scheme was developed in an emergency context in response to emerging variants, local and national restrictions/lockdowns. There has been an iterative approach to the grants schemes with each one getting stronger and more robust. 3.3 The lessons learnt form delivering the initial COVID-19 support grants is that greater assurance can be obtained through mandating pre-payment eligibility checks by local authorities, improved assurance sampling design, innovative data collection and management, as well as independent evaluation. Further information is included in the letter accompanying this recommendation. 3.4 Responsibility for checking that all grant awards were issued in a compliant manner and to eligible businesses rests with the local authority. It is a condition of BEIS grants to local authorities that they must take all reasonable and practicable steps to recover any payment made in fraud or error before BEIS becomes liable. See paragraph 2.4 above. 3.5 Grant award letters issued to local authorities on all COVID-19 business support schemes confirmed that the local authority was required to undertake appropriate and proportional assurance check on all grants issued to determine whether the funds were awarded to eligible businesses in a compliant manner. Each scheme has unique eligibility criteria to be checked.