UK Inquiry Tracker

DCMS management of COVID-19 loans

Public Accounts Committee Closed Inquiry

Opened: 31 Oct 2024 Closed: 16 Jun 2025 Parliament page

The COVID-19 pandemic placed enormous strain on the arts and sports sector, as many organisations were forced to close for prolonged periods. The Department for Culture, Media and Sport (DCMS) provided around £2.6 billion of support for organisations from 2020-22. A proportion of this support, £474 million, was provided in … Read more The COVID-19 pandemic placed enormous strain on the arts and sports sector, as many organisations were forced to close for prolonged periods. The Department for Culture, Media and Sport (DCMS) provided around £2.6 billion of support for organisations from 2020-22. A proportion of this support, £474 million, was provided in the form of loans repayable for up to 25 years. Given that this is the first time the DCMS has managed a loan book of this size, the National Audit Office (NAO) has launched an investigation into its ability to do so. As well as seeking to understand how effectively the DCMS is able to manage its loan book, it will also question if there are appropriate measures in place to oversee the repayment process. The NAO’s report will seek to understand how the department has managed any challenges that have arisen from the process so far. The Committee previously examined the Culture Recovery Fund , publishing its findings in 2021. The Committee warned that the DCMS would need a clear plan for how it would oversee the fund, ensuring it had the skills and capabilities within the organisation to do so. The Committee also recommended the Department implement lessons from across Government to ensure the process could benefit from the successes of other comparable schemes. Using the findings of the NAO report, the Committee will take evidence from senior Department of Culture, Media and Sport officials, with likely focuses including: - How effectively the Department has been able to manage its loan book and the processes it has in place in order to do so; - If the Department has a long-term plan for managing loan repayments and maximising financial returns and; - What lessons, if any, could be learned from the Departments approach to the governance of loan repayments. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Show less

1 Recommendation

24 Conclusions

1 Report

1 Oral session

6 Letters

1 Event

Activity timeline 10 events

12 Mar
2026

Correspondence

Letter from the Permanent Secretary at the Department for Culture, Media and Sport relating to recommendations 1 and 4a of the Committee’s …

10 Jul
2025

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Twentieth report from Session 2024-25

2 Apr
2025

Report published

20th Report - DCMS management of COVID-19 loans

2 Apr
2025

Correspondence

Letter to the Permanent Secretary of DCMS relating to PAC report: DCMS management of COVID-19 loans, 1 April 2025

2 Apr
2025

Correspondence

Letter from the Permanent Secretary of DCMS relating to PAC report: DCMS management of COVID-19 loans, 1 April 2025

27 Mar
2025

Correspondence

Letter from the Director General for Policy at the Department for Culture, Media and Sport relating to the DCMS management of COVID-19 loan…

11 Feb
2025

Correspondence

Letter from the Permanent Secretary of the HM Treasury relating to the Local authority administered COVID support schemes in England, 31 Ja…

11 Feb
2025

Correspondence

Letter from the Permanent Secretary for the Department for Culture, Media and Sport relating to updates on progress made in Grassroot parti…

10 Feb
2025

Oral evidence

Oral evidence session

10 Feb
2025

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Committee event

Oral evidence sessions 1 session

10 Feb 2025

View on parliament.uk

Gareth Davies · National Audit Office Gareth Davies · Department for Transport Max Tse · National Audit Office Nicola Hewer · Department for Culture, Media and Sport Polly Payne · Department for Culture, Media and Sport Rebecca Sheeran · National Audit Office Susannah Storey · Department for Culture, Media and Sport

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
20th Report - DCMS management of COVID-19 loans	HC 364	2 Apr 2025	25	Responded

Recommendations & Conclusions

6 results

7 Conclusion Deferred

20th Report - DCMS management of C…

Department learned lessons, improved loan management staffing and governance.

We therefore asked the Department what it would have done differently if it had to set up a similar loan scheme again. It told us that it had tried to build in lessons learned as it went through the process. … Read more

Government Response

The department will be undertaking a strategic review of its loan book management this financial year, including an external evaluation of the current operating model and alternative management options.

HM Treasury

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8 Conclusion Deferred

20th Report - DCMS management of C…

Loan agents initially lacked expertise, prompting appointment of specialist provider.

During 2020, the Department had appointed two of its arm’s–length bodies, Arts Council England and Sport England, as its loan agents for the day–to–day monitoring and management of the loans, including relationships with borrowers. However, both Arts Council England and … Read more

Government Response

HM Treasury

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14 Conclusion Deferred

20th Report - DCMS management of C…

Department conducted minimal analysis of future loan management costs beyond March 2025

The Department has conducted minimal analysis of the costs of managing the loans over their lifetime, with no assessment of the factors that might increase costs or reduce income. It forecast that it would spend £17.3 million over the three … Read more

Government Response

The department will be undertaking a review of the programme to re-assess its strategic options, which will assess options including a sale or partial sale of the loan book.

HM Treasury

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15 Conclusion Deferred

20th Report - DCMS management of C…

Department reviewing strategic options for loan book, including sale or consolidation with other loans

We therefore asked the Department how, if it did not have estimates of future costs beyond 2025–26, it was modelling the expected balance of costs against income in future years. It replied that it was conducting 24 Qq 62, 73; … Read more We therefore asked the Department how, if it did not have estimates of future costs beyond 2025–26, it was modelling the expected balance of costs against income in future years. It replied that it was conducting 24 Qq 62, 73; C&AG’s Report, paras 10 and 2.9 25 Qq 67, 71, 72 26 Q 80; C&AG’s Report, paras 10 and 2.9 27 Qq 73–75, 81–82; Letter from DCMS Permanent Secretary, 25 February 2025 28 Q30; C&AG’s Report, paras 17 and 3.3 29 C&AG’s Report, paras 17 and 3.4 30 Q 28; C&AG’s Report, para 3.3 31 Q 29 12 a review of its strategic options for the future of the loan book.32 The Department had undertaken such a review in 2021 and into 2022 when PwC had given it advice on all its options for the loan book, including the current hybrid approach to its management and its sale.33 It told us that it intends to undertake a similar review later in 2025–26 once all borrowers have made at least one repayment and the scheme is in a steady state with a solid operating model, experience of operating the loan management system, and a track record of repayment in place.34 The review will include more detailed costings and a review of various options.35 The Department said that it was keen to look at as many scenarios as it could think of. Future options include: the current arrangements for managing the loan book; the loan book’s sale; its consolidation with other government loans; or the appointment by the Department of specialists to manage its loans.36 The Department informed us that it had obtained an indicative range of the sale price back when PwC had advised it on its options in 2021 and 2022.37 We noted that an up–to–date valuation of potential receipts from the loan book’s sale will form an essential benchmark for this review.38 32 Qq 30, 31 33 Q 35; Letter from DCMS Permanent Secretary, 25 February 2025; C&AG’s Report, para 3.5 34 Qq 10, 12, 29–32 35 Qq 28, 30 36 Qq 31, 33, 35 37 Q 36 38 Q 33 13 2 Managing future risks Future repayment and insolvency levels Show less

Government Response

The department will be undertaking a review of the programme to re-assess its strategic options, which will assess options including a sale or partial sale of the loan book.

HM Treasury

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17 Conclusion Deferred

20th Report - DCMS management of C…

Department expects all remaining borrowers to make first loan repayment by September

The Department told us that, to some extent, the fact that some borrowers had become insolvent was outside its control.41 However, it considered that it has a good degree of financial information about borrowers and therefore has a good sense … Read more

Government Response

The department will be undertaking further cost, repayment and insolvency modelling through the department’s strategic review.

HM Treasury

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18 Conclusion Deferred

20th Report - DCMS management of C…

Department has not updated borrower failure assumptions since December 2022 despite new insolvencies

The Department has not updated its assumptions on borrower failure since December 2022, for example, in light of the number of insolvencies to date.44 We therefore asked what actions it would take for borrowers in financial difficulties. The Department told … Read more

Government Response

The department will revisit its strategic repayment forecasts and undertake further cost, repayment and insolvency modelling through the department’s strategic review by December 2025.

HM Treasury

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Government Response AI assessment · 25 of 1 classified

Accepted 12

Acknowledged 4

Deferred 6

Rejected 3

Total 1 rec + 24 conclusions

Correspondence 6 letters

12 Mar 2026 To committee Letter from the Permanent Secretary at the Department for Culture, Media and Sport relating to recommendations 1 and 4a of the Committee’s Twentieth Report on DCMS management of COVID-19 loans, 03 March 2026

Parliament page

2 Apr 2025 From committee Letter to the Permanent Secretary of DCMS relating to PAC report: DCMS management of COVID-19 loans, 1 April 2025

Parliament page

2 Apr 2025 To committee Letter from the Permanent Secretary of DCMS relating to PAC report: DCMS management of COVID-19 loans, 1 April 2025

Parliament page

27 Mar 2025 To committee Letter from the Director General for Policy at the Department for Culture, Media and Sport relating to the DCMS management of COVID-19 loans: rugby union follow-up, 17 March 2025

Parliament page

11 Feb 2025 To committee Letter from the Permanent Secretary of the HM Treasury relating to the Local authority administered COVID support schemes in England, 31 January 2025

Parliament page

11 Feb 2025 To committee Letter from the Permanent Secretary for the Department for Culture, Media and Sport relating to updates on progress made in Grassroot participation in sport and physical activity and DCMS management of COVID-19 loans, 06 February 2025

Parliament page