Lessons for government: monitoring and responding to companies in distress

Public Accounts Committee Closed Inquiry
Opened: 13 Dec 2023 Closed: 28 May 2024 Parliament page
Direct intervention in the private sector has generally been seen as a last resort by the Government, with private sector companies allowed to fail as part of the efficient working of markets and the economy. The Government’s approach in this area is now changing, with the pandemic, war in Ukraine … Read more
17 Recommendations
10 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 6 events
28 May
2024
Report published
13 Mar
2024
Report published
6 Feb
2024
Correspondence
6 Feb
2024
Correspondence
17 Jan
2024
Oral evidence
17 Jan
2024
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
17 Jan 2024
View on parliament.uk
Lessons for government: monitoring and responding to companies in distress
Hannah Gray · UK Government Investments Jess Glover · HM Treasury Neil Johnson · Department for Business and Trade Sir Gareth Rhys Williams CB · Cabinet Office
Title HC No. Published Items Response
Twentieth Report - Monitoring and responding to companies in dis… HC 425 13 Mar 2024 27 Responded
Recommendations & Conclusions
2 results
Clear
6 Recommendation Acknowledged
Twentieth Report - Monitoring and …
Set out updated approach to evaluating company distress cases and sharing lessons learned.
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 … Read more
Government Response
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 Recommendation Acknowledged
Twentieth Report - Monitoring and …
Government interventions often lead to prolonged involvement and unforeseen costs without clear exit strategies.
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 … Read more
Government Response
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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Government Response AI assessment · 26 of 17 classified
Accepted 17
Acknowledged 2
Deferred 6
Rejected 1
Total 17 recs + 10 conclusions
Correspondence 2 letters
6 Feb 2024 Correspondence from Gareth Rhys Williams CB, Government Chief Commercial Officer and Non-Executive Director, Crown Commercial Service, re Committee’s inquiry into lessons for government: monitoring and responding to companies in distress, dated 26 January 2024
Parliament page
6 Feb 2024 Correspondence from Jessica Glover, Director General, Growth and Productivity, HM Treasury, re Lessons for government in monitoring and responding to companies in distress hearing, dated 30 January 2024
Parliament page