Source · Select Committees · Public Accounts Committee
Recommendation 21
21
HM Treasury told us that it is currently considering its longer-term approach to the management...
Conclusion
HM Treasury told us that it is currently considering its longer-term approach to the management of COVID-19 legacy schemes, including the outstanding loans to businesses. It has not yet decided whether there is benefit in consolidating loan books across departments. As part of its overall monitoring of the economy, it is gathering information on how the loans are affecting businesses across different sectors, and to what extent the management of the loan books is achieving a range of economic policy objectives.39 31 The COVID-19 cost tracker, available at: COVID-19 cost tracker – National Audit Office (NAO) 32 Q 47 33 Q 46 34 Q 60 35 Q 46 36 Q 47; The COVID-19 cost tracker, available at: COVID-19 cost tracker – National Audit Office (NAO) 37 Qq 45, 49 38 Qq 46, 60, 61 39 Q 66 14 COVID 19: Cost Tracker Update 3 The post-pandemic recovery Spending on the recovery
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 HM Treasury has provided the resources for the British Business Bank (BBB) to deliver the ongoing administration of the government loan schemes and manage the associated risks to the taxpayer. Spending Review 2021 provides funding for the operating expenditure of the COVID-19 schemes, such as the running costs of the operations centre, developing the BBB’s financial crime capability and delivering the COVID-19 schemes audit and assurance programme. It additionally provides funding for BBB’s programme to transform its Data, IT, Outsourcing and Risk functions, which are critical to mitigating the risks linked to the COVID- 19 schemes. This is on top of the funding provided to the Department of Business, Energy and Industrial Strategy at Spring Budget 2021 and Spending Review 2021 to support counter fraud and strengthen enforcement for Bounce Back Loans. Further details on the loan schemes will be published in the Department of Business, Energy and Industrial Strategy’s annual report and accounts. 5.3 The government is also working closely with lenders to monitor and manage the government guaranteed loan scheme portfolios. Lenders are responsible for the recovery of these loans in line with the standards and legal obligations set out under the scheme. Lenders’ performance of their obligations is subject to a robust audit programme overseen by the British Business Bank. If lenders do not meet their obligations, the government has the right not pay out on any guarantee claims in scope.