Recommendation 14

HM Government Acknowledged

51. We have previously called on the Government to attach conditions to the use of taxpayer-funded support and are disappointed that, on each occasion measures have been extended, the Government has failed to do this. We recommend that the Government reviews what enforcement powers it has to ‘claw back’ support where appropriate, and what additional checks or conditions could be applied to support for businesses in order to reduce instances of fraud, and to sanction businesses which have accessed public funds in bad faith. (Paragraph 45) 52. To support the individuals and businesses most indeed during the pandemic, the Government has set out an expansive multi-billion pound package to support. The Government acted fast to support the labour market, while ensuring fraud risks were mitigated where possible. However, a minority of claimants are abusing the schemes and costing the taxpayer, and so the Government will protect taxpayers by tackling fraud and abuse within Covid-19 support packages. 53. The Government will invest over £100 million in a Taxpayer Protection Taskforce of 1,265 HMRC staff to combat fraud on the HMRC Covid-19 schemes, which is one of the largest and quickest responses to a fraud risk by HMRC. In addition, the Government will raise awareness of enforcement action in order to deter fraud and will significantly strengthen law enforcement for Bounce Back Loans. 54. My Department continues to work with other Government Departments, lenders, and law enforcement agencies to tackle fraudulent abuse of the Covid debt schemes and to recover funds where possible. 55. The Government does not intend to make public the detail of its approach to recovery and prosecution in different fraud cases, given this could inadvertently undermine the effectiveness of counter-fraud measures by tipping off criminals. Decisions on individual prosecutions are taken independently of Government by the Crown Prosecution Service.