Source · Select Committees · Public Accounts Committee
Recommendation 7
7
HM Treasury told us that, during the pandemic, it had made some very significant sums...
Conclusion
HM Treasury told us that, during the pandemic, it had made some very significant sums of money available at short notice in conditions of great uncertainty. This funding was ring-fenced so that, if it was not needed for the intended purpose, it would not be spent on other things.13 HM Treasury told us that there will not be separate ring-fenced COVID-19 expenditure for 2022–23 onwards. It suggested that bringing the tracker to a close at the end of 2021–22 was “probably the right thing to do” given the difficulties in distinguishing expenditure from this point.14 We therefore asked what its approach would be to programmes such as NHS Test and Trace and the vaccines programme, which would still be in place after 202122 and were clearly COVID-19-related costs. HM Treasury told us that while some ongoing costs, such as NHS Test and Trace and the vaccines programme, could reasonably be separately identified, it was increasingly difficult to distinguish costs due to COVID-19 from routine business costs.15 It gave the example of the backlog of cases within the criminal courts where HM Treasury asserted that the source of the backlog did not matter, what mattered was dealing with the backlog and that it had not ring-fenced any money specifically for COVID-19-related backlogs. It 11 Qq 56–58 12 Q 19 13 Q 18 14 Q 9 15 Qq 8, 10 10 COVID-19 cost tracker update told us that this approach would provide departments with greater flexibility to deal with the circumstances they faced.16 HM Treasury said that it would keep the departmental allocations under review and respond to changes in the pandemic.17
Government Response
Not Addressed
HM Government
Not Addressed
2.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 2.2 HM Treasury (the department) recognises the helpful role the cost tracker has played in improving transparency on the cost of COVID-19, providing timely updates on the nature and scale of spend. The Treasury has therefore committed to continue to conduct a routine review of these costs, where there have been material changes that can be reliably attributed to COVID-19, and to provide public updates. 2.3 These updates will be published annually for the next two years, after which the Treasury will review what is still required given, over time, it will become increasingly difficult to distinguish COVID-19 pandemic spend from business as usual spend. These annual publications will provide updates on, for example, the estimated lifetime cost of loans (including the Bounce Back Loan Scheme and loans through the Culture Recovery Fund). It will also provide updates on the costs of large COVID-19 pandemic specific public services measures, such as vaccines and balance sheet items such as personal protective equipment. 17 2.4 This annual document will supplement audited figures in departmental annual reports and accounts and other publications, providing a timely update with provisional (unaudited) data.