Source · Select Committees · Public Accounts Committee
Recommendation 8
8
The Department wrote to us to explain that ACE was now responsible for managing £252...
Conclusion
The Department wrote to us to explain that ACE was now responsible for managing £252 million in loans.16 Although the take-up of loan funding was lower than the Department originally predicted, it forms part of the £92 billion total of COVID-19 loans across all of Government.17 Sir Damon Buffini explained that the loans had a 20 year term, with a low interest rate and no repayments for two to four years.18 We asked ACE about its responsibility for managing a loan book of this size and potential complexity, given it had 6 Q 27, 28, 39 7 Qq 22, 39 8 Qq 25, 41 9 Q 31 10 Q 39 11 Q 25 12 Q 47 13 Q 68 14 Qq 50, 51 15 Q 39 16 Department for Digital, Culture, Media and Sport submission page 1, para 3 17 Qq 33, 72; C&AG’s Report, COVID-19 cost tracker (as updated 17 May 2021, available at www.nao.org.uk/ covid-19/cost-tracker) 18 Q 38 10 COVID 19: Culture Recovery Fund not previously had to manage a loan book on this scale. ACE told us it was working closely with the Department and HM Treasury to ensure it met the Government’s standards. It acknowledged it needed extra skills and said it was recruiting specialists who would be permanent appointments.19
Government Response
Not Addressed
HM Government
Not Addressed
2.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2021 2.2 DCMS officials are working carefully in order to establish the most appropriate mechanism for managing the loan book over the long term, factoring in best practice from across government and from industry experts. As a novel form of government investment, it is clear that sufficient resources must be provided to whomever ultimately manages the loan book - and that the appropriate structures underpinned by relevant expertise will be needed to reduce risks of default. 2.3 The Committee has asked for further updates on the Culture Recovery Fund in December 2021, and the department will include further information on this at that point.