Source · Select Committees · Public Accounts Committee
Recommendation 6
6
The Department’s enquiries of the Bank during Greensill’s accreditation created a damaging perception of interference,...
Conclusion
The Department’s enquiries of the Bank during Greensill’s accreditation created a damaging perception of interference, though the Bank asserts that this did not affect its judgement. The Department had eight email exchanges with the Bank between April and September 2020 requesting updates on Greensill’s accreditation to CLBILS and whether it would be allowed to lend up to £200 million. The Department’s interest in Greensill’s accreditation was based on the potential for the scheme to support Liberty Steel, part of the GFG Alliance and a major Greensill customer. The Bank describes this level of interest as “unusual”. Furthermore, when challenged on its lending to the GFG Alliance, Greensill told the Bank that it had received “political steers” that its support for the steel industry was welcome. The Department is unable to explain the source of this perceived support and has confirmed with all its ministers that no political cover for Greensill has been provided. On 30 April 2021, the Bank launched an internal review to assess whether third parties sought to influence it during the accreditation of Greensill and, if so, the outcome of that influence. The purpose of the review was to find out whether anybody attempted to exert influence over the Bank, not just whether these attempts were successful or not. The Bank’s review has concluded that its independence was not compromised. Recommendation: Alongside its Treasury Minute response, the Department should write to the Committee within three months setting out the principles it will apply to future correspondence with the Bank on matters for which the Bank is operationally independent, to minimise any future perception of influence. The Treasury should, jointly with the Cabinet Office, set out cross-government principles to create a more routine and transparent way of sponsoring bodies making enquiries of its arms-length bodies.
Government Response
Acknowledged
HM Government
Acknowledged
agree with the Committee’s conclusion. The £16.5 billion extra funding from Spending Review 2020 will support the aims and priorities outlined in the Integrated Review to better counter developing and future threats. Further detail and a breakdown of the £16.5 billion will be provided in the upcoming equipment plan report for publication in February 2022, with a clear distinction between investment in new capabilities and managing the existing shortfall reported in our previous updates. As usual, this will be published alongside the NAO report. 6.3 Recognising the time taken to compile this significant edition of the Equipment Plan, the department has provided updates to the Committee following the publication of the Defence Command Paper in March 2021. The department wrote to the Committee on 22 June with detail of the investments and savings taken through the Integrated Review. The department wrote again to the Committee on 14 September 2021 in response to the Committee’s report on equipment contracts and set out more detail on the new capabilities which will cover. Twenty-Third Report of Session 2021-22 Department of Health and Social Care Test and Trace - Update Introduction from the Committee NHS Test and Trace Service (NHST&T) was set up in May 2020 as part of the Department of Health and Social Care (the Department). It provides: COVID-19 polymerase chain reaction (PCR) testing, where results are processed in laboratories, primarily for people with symptoms; and lateral flow device (LFD) testing, which give results in around 30 minutes and are used to identify people with COVID-19 who are not showing symptoms. Working with local authorities, it contacts people who have tested positive and their recent contacts to advise them to self-isolate, as well as providing telephone monitoring and support during the self- isolation period. It also supports the UK’s work on genomic sequencing of some PCR tests to track variant forms of COVID-19 and carries out other research and data analysis through the Joint Biosecurity Centre. NHST&T estimates that it spent £13.5 billion in 2020–21, an underspend of £8.7 billion against its budget. By the end of May 2021, NHST&T had dispatched 691 million lateral flow tests, with 96 million (14%) results registered. On 24 March 2021, the government announced that NHST&T would form part of the newly created UK Health Security Agency (UKHSA). This transition is due to be complete by the end of October 2021. Based on a report by the National Audit Office, the Committee took evidence on Thursday 08 July from the Department of Health and Social Care, UK Health Security Agency and the former Head of NHST&T. The Committee published its report on 27 October 2021. This is the government’s response to the Committee’s report. Relevant reports • NAO report: Test and Trace in England - Progress Update – Session 2021-22 (HC 295) • PAC report: Test and Trace - Update – Session 2021-22 (HC 182)