Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Across government’s response to COVID-19, there are also other substantial loan books that have no...
Conclusion
Across government’s response to COVID-19, there are also other substantial loan books that have no estimated write-offs as at the September 2021 update to the cost tracker, but which government will have to manage until the loans are repaid. For example, as at the September 2021 update to the cost tracker, Arts Council England was responsible for £252 million of loans issued through the Culture Recovery Fund.22 We examined the Culture Recovery Fund in June 2021 and concluded that, as the largest ever single investment in the arts and culture sector, and with a typical 20-year term, these will require skilled oversight and careful management for years to come. We were concerned about the Department’s and Arts Council England’s ability to manage the significant 16 Q 18 17 Q 11 18 Qq 19, 21; Letter from Tom Scholar, Permanent Secretary, HM Treasury, to Dame Meg Hillier MP, Monitoring the cost of cross-government programmes, 23 December 2021 19 The COVID-19 cost tracker, available at: COVID-19 cost tracker - National Audit Office (NAO) 20 Q 37 21 Office for Budget Responsibility, Economic and fiscal outlook – October 2021 22 The COVID-19 cost tracker, available at: COVID-19 cost tracker - National Audit Office (NAO) COVID-19 cost tracker update 11 and ongoing loan book commitments created by the Fund and recommended that the Department made sure it had the resources in place to take on the new responsibility for managing the loans.23
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.