Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Acknowledged
Department considered sector financial sustainability and actively supported professional rugby union's recovery.
Conclusion
We asked the Department if it thought about the financial sustainability of sectors as a whole, and not just of individual borrowers, when considering future insolvency projections. It confirmed that it did and cited the example of rugby union. It told us that it cared deeply about the insolvencies of rugby clubs and it had used its convening power to help with the financial sustainability of professional rugby union.55 In June 2023, it had appointed two independent advisors to work with itself, the Rugby Football Union (the national governing body for rugby union in England), the Premiership Rugby League and CVC Capital Partners, which owns a significant proportion of League assets.56 This work had resulted in the signing in September 2024 by the Rugby Football Union, Premiership Rugby League and The Rugby Players Association of a new Men’s Professional Game Partnership to create world–leading English teams and thriving professional leagues.57
Government Response Summary
The department is developing a comprehensive borrower engagement plan, building on existing strategies implemented by Loan Agents, guided by core principles that define the department’s approach to borrower engagement.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2025 5.2 Every borrower is treated in line with the department's loan book objectives. The department maintains regular communication with its borrowers through its Loan Agents. The department has tailored its approach to different borrowers to reflect their individual circumstances including the size of their loan and therefore impact on the Exchequer. 5.3 In line with the NAO’s recommendation C (page 14), the department is developing a comprehensive borrower engagement plan that builds on existing strategies already implemented by Loan Agents. The plan will be guided by core principles that define the department’s approach to borrower engagement and will help to ensure decisions are applied appropriately across the loan portfolio. It will also include medium-term strategies that link key borrower and loan characteristics to appropriate engagement methods, aligned with the loan book’s current priorities and operating model.