Select committee: Public Accounts Committee
Conclusion 23
20th Report - DCMS management of COVID-19 loans
Published 2 Apr 2025
Addressed to HM Treasury
Public Accounts Committee DCMS management of COVID-19 loans All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We asked the Department what it was doing with regard to professional basketball and the proposals by the British Basketball Federation to franchise out the running of the professional league which some have claimed is putting at risk the Department’s loans to some of the clubs. The Department replied that it was not for the government to intervene in commercial decisions, such as franchising, as these were a matter for the sport’s governing body.58 However, it would expect Sport England, as its loan agent, to be working closely with any clubs which felt they could not repay their loan.59 It highlighted that, of the 11 professional basketball clubs 52 Qq 23, 97; C&AG’s Report, paras 16 and 2.21 53 Leonard Curtis Rugby Finance Report 2024, 25 September 2024, pages 16, 34, 52 and 56 54 Q 105 55 Qq 91–93 56 Q 91; C&AG’s Report, para 16 and 2.23 57 Q 93 58 Qq 106–110, 114; Letter from DCMS Permanent Secretary, 25 February 2025 59 Qq 107–111; Letter from DCMS Permanent Secretary, 25 February 2025 16 that had received loans, seven had repaid these in full.60 The Department also told us that it was unclear as to what Sport England were doing with regard to the franchising issue other than that Sport England had an ongoing relationship with the Federation over funding and compliance with its Code of Sports Governance.61 However, in response to our request for more information, it subsequently confirmed in writing that it, UK Sport and Sport England were engaging on this issue as the British Basketball Federation was in the process of receiving government funding, and that, if it were concerned about any actions by the Federation which were detrimental to either the long–term financial sustainability of basketball or the ability of clubs to afford loan repayments, these issues would form part of discussions with UK Sport and Sport England.62 Management of a conflict of interest
From: Public Accounts Committee, 20th Report - DCMS management of COVID-19 loans (HC 364), 2 April 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Twentieth Report of Session 2024-26
The government responded to the whole report on 4 June 2026.
Treasury minutes: Government response to the Committee of Public Accounts on the Twentieth report from Session 2024-25
Published 10 July 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with the Committee's recommendations on loan book management, the loan management system, long-term options, repayment forecasts, borrower management and borrower engagement, but disagrees with the recommendation on rugby union accountability.
- On long-term options, the government agrees and says a strategic review, to be completed in 2025-26, will assess options "including, but not limited to, a sale or partial sale of the loan book".
- On repayment estimates, the government agrees, with a target date of December 2025. It says further cost, repayment and insolvency modelling will be done through its strategic review.
- On the PwC contract, the government agrees and says the full loan management system functionality was implemented in March 2025 "for under £300,000". The PwC contract has been extended for a further year.
- On rugby union accountability, the government disagrees with the recommendation. It "continues to believe" accountability is best achieved by a Director General within the department as Additional Accounting Officer, rather than a Permanent Secretary from another department.