BEIS Annual Report & Accounts 2020-21

Public Accounts Committee Closed Inquiry
Opened: 12 Jan 2022 Closed: 2 Sep 2022 Parliament page
Gareth Davies, the Comptroller and Auditor General (C&AG) of the National Audit Office, has qualified his audit opinion on the Department for Business, Energy and Industrial Strategy 2020-21 accounts because of the material levels of fraud and error in COVID-19 business support scheme expenditure . The Committee will question senior … Read more
4 Recommendations
16 Conclusions
1 Report
1 Letter
Recommendations & Conclusions
6 results
3 Recommendation Accepted
First Report - Department for Busi…
The Department does not know whether grants distributed by local authorities on its behalf have...
The Department does not know whether grants distributed by local authorities on its behalf have benefited businesses, including those most in need of that funding. Although the Department set the eligibility criteria for grant schemes administered by local authorities, it … Read more
Government Response
The government agrees with the recommendation and states that lessons learned from delivering the initial COVID-19 support grants is that greater assurance can be obtained through mandating pre-payment eligibility checks by local authorities, improved assurance sampling design, innovative data collection and management, as well as independent evaluation.
HM Treasury
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4 Conclusion Accepted
First Report - Department for Busi…
The Department was aware of heightened fraud risks within its COVID-19 business support schemes from...
The Department was aware of heightened fraud risks within its COVID-19 business support schemes from the outset but did not make full use of all the tools at its disposal to prevent and detect fraud. The Department expected that some … Read more
Government Response
The government agrees with the Committee’s recommendation and states that the exchange of letters for schemes implemented under Ministerial Direction have since been published on GOV.UK, and that external advice was received ahead of the Bounce Back Loan Scheme’s launch on measures to try to mitigate fraud.
HM Treasury
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6 Recommendation Accepted
First Report - Department for Busi…
The Post Office’s mismanagement of its Horizon programme has had devastating consequences for individuals wrongly...
The Post Office’s mismanagement of its Horizon programme has had devastating consequences for individuals wrongly accused of fraud. The financial cost of compensating these individuals will largely fall to the public purse. The Horizon accounting system erroneously recorded shortfalls of … Read more
Government Response
The government agrees and has provided over £2.5 billion in funding over the past decade, and is providing a further £335 million over the next three years, and will share letters with the Committee from BEIS to Post Office, providing assurances for the Historical Shortfall Scheme, interim and full payments for those with overturned criminal convictions. Further letters will be shared with the Committee at the earliest opportunity.
HM Treasury
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11 Conclusion Accepted
First Report - Department for Busi…
Although the Department set eligibility criteria for grant schemes administered by local authorities, it delegated...
Although the Department set eligibility criteria for grant schemes administered by local authorities, it delegated most grant decisions to them. The Department told us that it provided clear guidance to local authorities on recordkeeping requirements and the need to be … Read more
Government Response
Responsibility for checking that all grant awards were issued in a compliant manner and to eligible businesses rests with the local authority. It is a condition of BEIS grants to local authorities that they must take all reasonable and practicable steps to recover any payment made in fraud or error before BEIS becomes liable.
HM Treasury
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16 Conclusion Accepted
First Report - Department for Busi…
As some COVID-19 business support schemes have increasingly become part of business as usual, the...
As some COVID-19 business support schemes have increasingly become part of business as usual, the Department told us that, for example in relation to grants distributed by local authorities, its systems and methods are now approaching maturity. It considers it … Read more
Government Response
The government agrees with the recommendation to establish a standard framework for assuring grants delivered through local authorities, with a target implementation date of December 2022.
HM Treasury
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19 Conclusion Accepted
First Report - Department for Busi…
In December 2020 the Department wrote to the Post Office, noting that the number of...
In December 2020 the Department wrote to the Post Office, noting that the number of applications to the Scheme was ‘…materially higher than expected resulting in a corresponding increase in possible scheme claims and costs…’ and that the Post Office … Read more
Government Response
The government agrees with the Committee’s recommendation and states it has provided over £2.5 billion in funding to support the Post Office network over the past decade, and is providing a further £335 million over the next three years.
HM Treasury
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Government Response AI assessment · 20 of 4 classified

Total 4 recs + 16 conclusions
Correspondence 1 letter
11 Jul 2022 Correspondence from Sarah Munby, Permanent Under-Secretary of State, Department for Business, Energy & Industrial Strategy, re follow up to the first report – BEIS Strategy Annual Report and Accounts 20-21, dated 6 July 2022
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