Source · Select Committees · Public Accounts Committee
Recommendation 6
6
Rejected
Consider alternative arrangements to fill accountability gap for rugby union loans.
Conclusion
Owing to a conflict of interest, the Department has allowed a gap to arise in accountability to Parliament for a significant amount of public money relating to the loans it made to rugby union. Since her appointment as Permanent Secretary in 2023, the Department’s Accounting Officer has had a conflict of interest regarding rugby union. She has properly declared this conflict and recused herself from relevant discussions and decisions, and the Department has put in place arrangements involving other Department staff to handle the conflict. However, the Department is most heavily exposed to rugby union in terms of both the amount of loans it has made and the financial health of the sport. The conflict of interest meant that we could not question the Permanent Secretary directly about the £124 million that the Department had loaned to top–tier rugby union clubs (57% of its total COVID loans to sports bodies) and its subsequent management of these loans. recommendation The Department should consider alternative arrangements for filling the accountability gap to Parliament relating to rugby union loans, for example involving the Permanent Secretary of another department, who could be appointed as the Accounting Officer for this item. 7 1 The arrangements for managing the loan book Introduction
Government Response Summary
The government disagrees with the recommendation, stating that accountability is best achieved by delegating Accounting Officer decisions for Rugby Union to a Director General within DCMS. The Director General for Strategy and Major Events has been appointed as Additional Accounting Officer for Rugby Union matters, in line with HM Treasury guidance.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. The Permanent Secretary wrote to PAC on this matter on 1 April and 12 May 2025 to ensure the Committee has clarity around the specific Accounting Officer arrangements. The department will continue to liaise with the Treasury to follow best practice, ensure consistency with Managing Public Money guidance and to ensure that there is appropriate accountability to Parliament relating to Rugby Union loans. To summarise the arrangements, Accounting Officer decisions on Rugby Union are delegated. The department continues to believe that accountability is best achieved by having a Director General within the department as an Additional Accounting Officer, rather than a Permanent Secretary from another department. The Director General for Strategy and Major Events at DCMS has now been appointed as Additional Accounting Officer for Rugby Union matters. This is a continuation of the existing arrangements and is in line with HM Treasury’s Managing Public Money guidance which states that after declaring the conflict other individuals can have delegated responsibility to make decisions. The arrangements in relation to Rugby Union on this matter are also set out in the DCMS Annual Report and Accounts, most recently for 2023-24.