Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
Evidence gathered on Department's management of COVID-19 loan book.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Culture, Media and Sport (the Department) on the management of its COVID–19 loan book.1
Government Response Summary
The government will undertake a strategic review of its loan book management in the current financial year, including an external evaluation and consideration of alternative management options.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. part of the broader Culture Recovery Fund (CRF) and Sport Survival Package (SSP) COVID- 19 interventions. These packages were originally designed to ensure no sport or cultural organisation would go insolvent as a result of COVID-19 restrictions, with loans awarded to organisations able to demonstrate eligibility and financial need. The loan terms included a repayment holiday, allowing organisations time to recover before repayments commenced. This time also allowed the department to enhance its capability and capacity to manage the loan book. The Loan Book Management programme has two clear objectives, which are followed by all delivery partners. The financial objective is always considered first: • Maximising financial return to the Exchequer (the “financial objective”); whilst • Balancing the department's long-standing and enduring interest in protecting the long-term sustainability of the country's sporting and cultural sectors and the benefits they generate (the “policy objective”). The department took steps to ensure it had a robust model in place, having analysed a range of options and taken external advice. This has ensured that the department has received 97% of the repayments scheduled at the date of the NAO report, which demonstrates the positive performance of the department’s loan book management approach. The department will be undertaking a strategic review of its loan book management in this financial year. This will involve a review of the efficiency and effectiveness of the current operating model, including an external evaluation. The review will consider alternative management options and is further referenced in the department’s response to recommendation 3.