Recommendation 15

The Chief Secretary to the Treasury acknowledged in his letter of 1 April 2021 that a consequence of an enhanced risk appetite is that risks are more likely to crystalize. A clear example of risks from the government’s approach materialising is the 10,000 shipping containers of personal protective equipment (PPE) ordered earlier in the pandemic that were yet to be unpacked when we took evidence on the matter in May.20 HM Treasury cautioned that the current estimates of the expected cost of the government’s COVID-19 response are snapshots of government’s exposure as of today, rather than assessments of the final bill. For some of government’s actions, for example the business loan schemes, the full extent of financial risks will become apparent over future years.21 HM Treasury told us that it is updating its guidance on undertaking risk assessments during an emergency.22 16 Qq 18, 20, 21; Letter of 1 April 2021 from the Chief Secretary to the Treasury to the Chair of the Treasury Committee 17 Qq 21, 51 18 Q 52 19 Q 20 20 Q 55; Letter of 1 April 2021 from the Chief Secretary to the Treasury to the Chair of the Treasury Committee 21 Q 12 22 Q 40 12 COVID 19: Cost Tracker Update Achieving value for money