Source · Select Committees · Public Accounts Committee
Twentieth Report - Monitoring and responding to companies in distress
Public Accounts Committee
HC 425
Published 13 March 2024
Recommendations
6
Acknowledged
Set out updated approach to evaluating company distress cases and sharing lessons learned.
Recommendation
It is vital that the government evaluates and shares the lessons from these cases on a timely and consistent basis, regardless of whether the case resulted in government intervention. We have previously found that much of government activity and spending …
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Government Response Summary
The government acknowledges that evaluation of company distress cases has not been formalised and will work with the Cabinet Office and UKGI to consider future changes and how to strengthen departmental evaluation requirements and share lessons. It also points to parliamentary and NAO scrutiny as providing evaluation.
HM Treasury
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20
Acknowledged
Government interventions often lead to prolonged involvement and unforeseen costs without clear exit strategies.
Recommendation
The NAO report has shown how intervening in companies can lead to unforeseen costs and government involvement over a period much longer than expected. Ensuring value for money requires careful consideration not just of short-term objectives but also of longer-term …
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Government Response Summary
The government agrees with the recommendation on planning for long-term scenarios and exit strategies for interventions, with a target date of July 2024. It highlights existing guidance and support from various departments and commits to shortly re-issuing the NAO's good practice guide to departments.
HM Treasury
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