Source · Select Committees · Public Accounts Committee
Recommendation 15
15
The Department acknowledged that there were significant challenges inherent in its franchising model used prior...
Conclusion
The Department acknowledged that there were significant challenges inherent in its franchising model used prior to the pandemic. It told us that the previous surplus in franchising costs had become a deficit prior to the pandemic.37 During the final four years of Control Period 5 (2015–16 to 2018–19), net government funding for franchised operators increased from a surplus of £1 billion to a deficit of £2 million. In 2019–20, the first year of Control Period 6, net government funding was a deficit of £533 million, including £300 million of COVID-19 support.38