Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Rejected
Conflict of interest prevented direct questioning on Department's substantial rugby loans and financial exposure.
Conclusion
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 and its subsequent management of these loans. Instead, we had to direct our questions to the Director General for Policy.65 Professional rugby union is the area where the Department is most heavily exposed in terms of both the amount of loans it has made, 57% of all its loans to sports bodies, and the sport’s financial health.66 60 Q 112 61 Qq 111–114; Letter from DCMS Permanent Secretary, 25 February 2025 62 Qq 115; Letter from DCMS Permanent Secretary, 25 February 2025 63 Qq 1, 3; DCMS register of board member interests 64 Q 90; Letter from DCMS Permanent Secretary, 25 February 2025; Letter from Director General for Policy at DCMS, 25 February 2025 65 Qq 90–105 66 Q 93 17
Government Response Summary
The government disagrees with the Committee’s recommendation and believes that accountability is best achieved by having a Director General within the department as an Additional Accounting Officer.
Government Response
Rejected
HM Government
Rejected
6.1 The government disagrees with the Committee’s recommendation. 6.2 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. 6.3 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. 6.4 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. 6.5 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. 6.6 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.