Source · Select Committees · Public Accounts Committee
Recommendation 15
15
The Department launched its first COVID-19 business support scheme shortly after the first lockdown was...
Conclusion
The Department launched its first COVID-19 business support scheme shortly after the first lockdown was announced on 23 March 2020. Since then, the Department has launched many more, and now has around two years’ worth of experience of designing, implementing, and managing its COVID-19 business support schemes.56 It has taken some actions seeking to apply learning to improve these schemes and reduce fraud and error, including approaching other departments to learn from them, such as the Cabinet Office counter-fraud function. It subsequently increased capability and capacity in its own counter-fraud function, with one of this function’s new duties being to undertake mandatory fraud risk assessments at outline and final business case stages when considering new policy.57 The ICAEW told us that it believes the Department should strengthen its counter-fraud capacity and capability more widely, particularly as grants are likely to play a key role in delivering the government’s Net Zero Strategy.58
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2022 5.2 The department continues to refine its estimates of the levels of fraud and error across its COVID-19 business support schemes, including the COVID-19 loan schemes and grants. 5.3 The department will publish revised estimates for Cohort 1 grants and first estimates for the subsequent schemes in its 2021-22 annual report and accounts due to be published in Autumn 2022. See paragraph 1.4 above. 5.4 As part of the assurance work, the department will write to local authorities with the findings and asking them were relevant to start the debt recovery process. 5.5 The COVID-19 loan schemes are delegated schemes, and primary responsibility for detection, investigation and recovery of fraud sits with lenders, in line with their usual processes. The Cabinet Office's fraud analytics programme aids lenders in this process by improving the information available to them on suspected fraud, which they can use to support their internal investigations and pursue recoveries. 5.6 Meanwhile, the department is working with NATIS, the Insolvency Service and other law enforcement agencies to pursue investigations into fraud in the Bounce Back Loan Scheme (BBLS). At the 2022 Spring Statement, the department secured additional funding for NATIS and the British Business Bank to target abuse of BBLS.