Source · Select Committees · Public Accounts Committee
Recommendation 6
6
Only a few of the fourteen functions have been able to demonstrate the benefits of...
Conclusion
Only a few of the fourteen functions have been able to demonstrate the benefits of their activities. Most functions have not been able to quantify their costs and benefits. The Cabinet Office admits there are difficulties measuring the impact of some functions, such as the HR function. Progress has been made in some areas: the Commercial function regularly collects data on the cost and benefits of its work and has a mature process for evidencing benefits; and the Digital function has undertaken analysis of the cost savings of moving to inhouse specialists rather than relying on external contractors. The Government Internal Audit Agency is currently working on compiling comparative data on costs and benefits for the functions. When complete this will allow the Cabinet Office to better benchmark functions’ performance and identify best practice. However, the quantification of costs and benefits and the measurement of impact is not yet common practice across the functions. Recommendation: The Cabinet Office, HM Treasury and functions should agree a consistent methodology for measuring costs, benefits and impacts across all functions by July 2021 and report to the Committee on functions’ performance. 8 Specialist Skills in the civil service 1 Impact of skills shortages in government
Government Response
Acknowledged
HM Government
Acknowledged
2020. HM Treasury, the Department for Business, Energy & Industrial Strategy (the department) and the British Business Bank (the Bank), based on a limited evidence of the underlying challenges for businesses, developed the Bounce Back Loan Scheme (the Scheme). The Scheme sought to provide businesses with loans of up to £50,000, or a maximum of 25% of annual turnover, to maintain their financial health during the covid-19 pandemic. The loans are delivered through commercial lenders such as banks and building societies. The Scheme expects lenders to approve and pay out the loans within 24 to 48 hours of application. To make the process as fast as possible the Scheme does not require lenders to check the information on the loan application form or to perform credit and affordability checks. Borrowers are expected to repay the loans in full but owing to the absence of these checks government provides lenders a 100% guarantee on the loans: if the borrower does not repay the loan, government will. The loans have a fixed interest rate of 2.5% and a maximum length of ten years; in the first year of the loan there are no capital repayments due, and government pays the interest—making it interest-free for the borrower. As of 15 November, the Scheme had provided over 1.4 million loans to businesses, totalling £42.2 billion. The Scheme will now run until 31 January 20211. Based on a report by the National Audit Office, the Committee took evidence, on 5 December 2020 from the HM Treasury, the department and the Bank. The Committee published its report on 16 December 2020. Relevant reports • NAO report: Investigation into the Bounce Back Loan Scheme – Session 2019-21 (HC 860) • PAC report: COVID 19: Bounce Back Loan Scheme – Session 2019-21 (HC 687) Government responses to the Committee