Work of the Department for Business and Trade

Public Accounts Committee Closed Inquiry
Opened: 26 Mar 2025 Closed: 21 Aug 2025 Parliament page
The Department for Business and Trade (DBT) was created in February 2023, bringing together relevant parts of the former Department for Business, Energy and Industrial Strategy (BEIS) and the former Department for International Trade (DIT). 2023-24 is the new Department’s first year of accounts. Notable values for investments and liabilities … Read more
12 Recommendations
63 Conclusions
2 Reports
1 Oral session
3 Letters
1 Event
Activity timeline 9 events
18 Sep
2025
Report published
18 Sep
2025
Report published
25 Jun
2025
Report published
25 Jun
2025
Report published
8 May
2025
Correspondence
28 Apr
2025
Correspondence
24 Apr
2025
Correspondence
7 Apr
2025
Oral evidence
7 Apr
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
Oral evidence sessions 1 session
7 Apr 2025
View on parliament.uk
Carl Creswell · Department for Business, Energy and Industrial Strategy David Bickerton · Department for Business and Trade Gareth Davies · Department for Business and Trade Gareth Davies · Department for Transport Jaee Samant CBE · Department for Business and Trade Sean Jones · HM Treasury Tara Smith · Department for Business and Trade
Recommendations & Conclusions
75 results
2 Conclusion Accepted
34th Report - Department for Busin…
Outline plans for handling remaining Overturned Convictions Scheme cases after transition.
Within the Overturned Convictions Scheme, there are a number of complex cases where claims have not yet been submitted, meaning ongoing delays in compensation for these individuals. The Overturned Convictions Scheme was set up to compensate those who had their … Read more
Government Response
The government confirmed the Overturned Convictions scheme claims transferred to the Horizon Convictions Redress Scheme (HCRS), which will operate with case management processes and an independent panel including Dentons and Sir Gary Hickinbottom. Further guidance on these roles and the Alternative Dispute Resolution process will be published by the end of Summer 2025.
HM Treasury
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3 Conclusion Acknowledged
34th Report - Department for Busin…
Set out assessment of financial support and plans for Post Office independence.
The Department has issued a far-reaching letter of support, which commits it to supporting the Post Office to pay its liabilities as they fall due, but there is no clear plan for how long this will continue, or how to … Read more
Government Response
The government agrees with the recommendation but provides no specific commitment or timeline for writing to the Committee with an assessment of financial support or plans for Post Office Limited's financial independence.
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4 Conclusion Accepted
34th Report - Department for Busin…
Provide the Committee with NATIS audit findings and Insolvency Service's fraud recovery performance.
The Department’s efforts to recover fraud losses incurred through the Bounce Back Loan Scheme have been largely unsuccessful, with only a small fraction of losses recovered to date, for which the Department is unable to confirm the value. The Department … Read more
Government Response
The government agrees and commits to writing to the Committee in one year to provide obtainable information on the Insolvency Service's performance in recovering fraud losses from the Bounce Back Loan Scheme. It did not address the request for NATIS audit findings.
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5 Recommendation Accepted
34th Report - Department for Busin…
Provide the Committee with a written update on delayed annual accounts, including reasons and actions.
The restructuring process which created the Department left it insufficiently resourced to deliver its 2023–24 Annual Report and Accounts on a timely basis and unable to establish appropriate controls and processes across the 2023–24 financial year. The Department inherited limited … Read more
Government Response
The government agrees to provide a written update if planned dates for laying accounts are missed, and confirms that the Annual Report and Accounts production is currently on target for September publication.
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1 Conclusion Accepted
34th Report - Department for Busin…
Committee takes evidence on Department's Annual Report, Horizon, and Bounce Back Loan Schemes.
On the basis of its Annual Report and Accounts 2023–24, we took evidence from the Department for Business and Trade (the Department).1 We focused on the Horizon Compensation Schemes, Bounce Back Loan Scheme, and the preparation of its the Annual … Read more
Government Response
The government commits to finalising letters for remaining Horizon Shortfall Scheme (HSS) claimants by September 2025, reviewing the recommended HSS closure date and responding by October 10, 2025. It also plans to write to all individuals eligible for the Horizon Convictions Redress Scheme (HCRS) who have not yet registered by the end of September 2025.
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6 Conclusion Accepted
34th Report - Department for Busin…
C&AG issues qualified opinion on Department's accounts due to Horizon scheme provision uncertainty.
For the 2023–24 external audit, the Comptroller & Auditor General (C&AG) recorded a qualified opinion on the Department’s accounts due to the Department being unable to obtain sufficient appropriate evidence that the value of provisions for the HSS and HCRS … Read more
Government Response
The government agrees with the committee's concern regarding the qualified audit opinion due to Horizon scheme provisions. It commits to finalizing HSS letters by September 2025, reviewing the HSS closure date recommendation by October 2025, and writing to unregistered HCRS individuals by September 2025 to encourage applications.
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7 Conclusion
34th Report - Department for Busin…
Horizon scheme settlement payments fall short of expectations in 2023-24 Annual Report and Accounts.
In the Department’s 2023–24 Annual Report and Accounts, it estimated that £866 million of the combined Horizon Schemes provisions would be settled within 1 year.8 In a letter provided after our oral evidence session, the Department confirmed that it paid … Read more
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8 Conclusion Accepted
34th Report - Department for Busin…
Uncertainty in Horizon Shortfall Scheme provision primarily due to unknown volume of claimants.
For the Horizon Shortfall Scheme (HSS), the main uncertainty when calculating the overall settlement provision is regarding the volume of claimants. The Department told us that in order to establish the number of eligible claimants, the Post Office is writing … Read more
Government Response
The government agrees with the committee's observations on the HSS and commits to finalizing letters to remaining eligible claimants by September 2025. It will also review the proposed HSS closure date by October 2025 and write to all unregistered HCRS individuals by September 2025 to encourage registration.
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9 Conclusion Accepted
34th Report - Department for Busin…
Uncertainty in Horizon Convictions Redress Scheme provision primarily due to unknown value per claim.
For the HCRS, the Department told us that the uncertainty within this scheme relates to the value per claim, rather than the number of claimants. The Department told us that justice authorities (Ministry of Justice, Justice Directorate Scotland and the … Read more
Government Response
The government agrees with the committee's implicit recommendation, setting an Autumn 2025 target. It will finalise letters for the Horizon Shortfall Scheme (HSS) by September 2025, review a recommended HSS closure date, and write to eligible HCRS individuals by end of September 2025 to encourage registration.
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10 Conclusion Accepted
34th Report - Department for Busin…
Ongoing uncertainty in Horizon schemes over claimant numbers and complex claim values.
The Department told us that it is confident the level of uncertainty over the number of potential claimants in HSS will reduce over the 2025–26 financial year. The uncertainty over the number of potential claimants within the HSS was a … Read more
Government Response
The government agrees with the committee's implicit recommendation for reducing uncertainty in the redress schemes, setting an Autumn 2025 target. It will finalise letters for the Horizon Shortfall Scheme (HSS) by September 2025, review a recommended HSS closure date, and write to HCRS eligible individuals who haven't registered by end of September 2025 to encourage participation.
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11 Recommendation Accepted in Part
34th Report - Department for Busin…
Lack of follow-up letters to unapplied Horizon Shortfall Scheme claimants raises settlement delay concerns.
We were concerned about the potential for further delay of settlements if letters which had not yet received a reply were not being followed up. We therefore asked the Department whether any chasing up of letters had occurred where no … Read more
Government Response
The government agrees with the committee's concern regarding follow-up letters for HSS. While not explicitly confirming the consultation with the Advisory Board, it commits to finalizing letters for remaining HSS claimants by September 2025 and will write to unregistered HCRS individuals by September 2025 to encourage registration.
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12 Conclusion Accepted
34th Report - Department for Busin…
Department assumes direct responsibility for Overturned Convictions Scheme management from June 2025.
Following feedback from scheme applicants and the Business and Trade Select Committee in its report published January 2025, the Department has agreed to take on direct responsibility for management of the OC Scheme from 3 June 2025.23 There is a … Read more
Government Response
The government agrees with the committee's implicit recommendation, confirming that from June 3rd, 2025, the Overturned Convictions (OC) scheme claims transferred to the Department-delivered Horizon Convictions Redress Scheme (HCRS). The HCRS will apply the same principles, and further guidance on case management and alternative dispute resolution will be published by the end of Summer 2025.
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13 Conclusion Accepted
34th Report - Department for Busin…
Sir Gary Hickinbottom employed to manage Post Office Horizon compensation scheme disagreements.
As part of the scheme administration, the Department told us it has employed Sir Gary Hickinbottom, a former judge, to hold case management hearings and work through areas of disagreement between claimants and the Post Office or Department. Sir Gary … Read more
Government Response
The government confirms Sir Gary Hickinbottom's continued role in case management within the new Horizon Convictions Redress Scheme (HCRS) and commits to publishing further guidance on his role and the Alternative Dispute Resolution process by the end of Summer 2025.
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14 Conclusion Accepted
34th Report - Department for Busin…
Majority of eligible individuals received payments or offers by March 2025.
According to the Department, there are 111 individuals eligible for financial redress through the OC scheme. As at 31 March 2025, 86 had submitted full and final claims, of which 69 had been paid, 1 had accepted an offer and … Read more
Government Response
The government agrees with the committee's report on the OC scheme's progress, confirming the OC scheme closed on June 3, 2025, with claims transferred to the HCRS under the same principles. It commits to publishing further guidance on the HCRS processes, Dentons' and Sir Gary Hickinbottom's roles, and alternative dispute resolution by the end of Summer 2025.
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15 Conclusion Accepted
34th Report - Department for Busin…
Complexity may delay claims from 25 individuals until 2026 despite interim payments.
The Department told us it is possible that claims may not be received for the remaining 25 eligible individuals until into 2026 due to the complexity of their cases. The Department hopes however that these 25 individuals will feel more … Read more
Government Response
The government has transferred claims to the new Department-delivered Horizon Convictions Redress Scheme (HCRS) from June 2025, outlining enhanced case management processes and committing to publish further guidance by the end of Summer 2025 to address complex cases and improve claimant engagement.
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16 Conclusion Accepted
34th Report - Department for Busin…
Department's Letter of Support crucial for Post Office's financial stability as a going concern.
The Post Office is wholly owned by the Department, although the Department does not have responsibility for the day-to-day running of the Post Office. The Department supports the Post Office through the funding of all Horizon redress compensation schemes. However, … Read more
Government Response
The government commits to writing to the Committee in Autumn 2025, following the publication of the Treasury Minute, concerning the Post Office's financial stability and the ongoing reliance on the annual Letter of Support.
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17 Conclusion Acknowledged
34th Report - Department for Busin…
Department provided £260 million in grants and £786 million in loans to Post Office.
The 2023–24 Annual Report and Accounts show that the Department provided £260 million in grants and subsidies to the Post Office and had total borrowings of £786 million with the Department, made up as follows: 30 Type of Support Description … Read more
Government Response
The government acknowledges the committee's observation regarding the Post Office's financial support and borrowings, and commits to writing to the Committee in Autumn 2025 following the publication of the Treasury Minute.
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18 Conclusion Acknowledged
34th Report - Department for Busin…
Letter of Support assures against Post Office financial risks and inability to meet liabilities.
The Letter of Support also provides assurances for other financial risks that, were they to crystallise, may result in the Post Office not being able to meet its liabilities as they fall due.31
Government Response
The government acknowledges the committee's conclusion that the Letter of Support provides assurances for Post Office financial risks and commits to writing to the Committee in Autumn 2025 with an update.
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19 Conclusion Acknowledged
34th Report - Department for Busin…
Letter of Support is a commitment, not a blank cheque or financial guarantee.
We were concerned that the Letter of Support effectively acts as the Post Office having a “blank cheque” from the Department, and asked what conditions were attached to it.32 The Department told us that there is a rolling working capital … Read more
Government Response
The government acknowledges the committee's conclusion regarding concerns about the Letter of Support's perceived 'blank cheque' nature and commits to writing to the Committee in Autumn 2025 with an update following the Treasury Minute.
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20 Conclusion Accepted
34th Report - Department for Busin…
Department confident in short-term liquidity but assessing Post Office's long-term financial viability.
The Department told us that it has confidence in the Post Office’s short- term liquidity, through the assurance provided by UKGI and that there is a longer-term question regarding the financial viability of the Post Office. The Department told us … Read more
Government Response
The government commits to writing to the Committee in Autumn 2025, following the publication of the Treasury Minute, implying an update on the Post Office's long-term financial viability which the Department is actively addressing.
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21 Conclusion Accepted
34th Report - Department for Busin…
Department did not consider Letter of Support required separate parliamentary notification.
The Department did not consider the Letter of Support to require separate notification to Parliament in line with the requirements of Managing Public Money on the basis of the following:35 • Issuing the Letter of Support is not outside of … Read more
Government Response
The government commits to providing a formal notification to the Committee when the Letter of Comfort to the Post Office Limited is issued, with a target implementation date of Winter 2025.
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22 Recommendation Accepted
34th Report - Department for Busin…
Managing Public Money requires timely parliamentary notification of commitments and department agreed to notify committee.
Managing Public Money explains that whilst departments may make commitments to future expenditure without explicit parliamentary authority, Parliament should be notified of the existence of these commitments on a 31 DBT ARA 2023–24, p 154 32 Q 21 33 Correspondence … Read more
Government Response
The government agrees with the recommendation and commits to formally notifying the Committee when the Letter of Comfort to the Post Office Limited is issued, with a target implementation date of Winter 2025.
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23 Conclusion Acknowledged
34th Report - Department for Busin…
Bounce Back Loan Scheme designed to support small businesses with 100% government guarantee
The Bounce Back Loan Scheme (BBLS) was established as part of a suite of measures to provide support to small businesses during the COVID-19 pandemic, with a maximum loan value of £50,000. The loans were provided by commercial lenders directly … Read more
Government Response
The government acknowledged its responsibility for the ongoing management of the Bounce Back Loan Scheme.
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24 Conclusion Not Addressed
34th Report - Department for Busin…
Reduced BBLS lender checks for 1.5 million loans increased taxpayer fraud risk
The BBLS was open for applications from 4 May 2020 to 31 March 2021, and in that time 1.5 million loans were issued, to a total value of £47.4 billion. The BBLS was designed to reduce the time taken to … Read more
Government Response
The Department's responsibilities also include the ongoing management of the Bounce Back Loan Scheme, which was set up as part of a suite of measures to provide support to businesses during the COVID-19 pandemic.
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25 Conclusion Accepted
34th Report - Department for Busin…
BBLS fraud losses estimated at £1.9 billion with tiered investigation strategy
As at 31 March 2024, there remained 1.03 million loans outstanding, to a value of £17.8 billion.41 The Department estimates that total losses to the taxpayer due to fraud in the scheme will be at least £1.9 billion over its … Read more
Government Response
The government commits to providing key findings from the National Investigation Service (NATIS) audit, including recovery values, by August 2026 and information on the Insolvency Service's performance in recovering fraud losses by July 2026, addressing concerns about BBLS fraud investigations.
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26 Conclusion Accepted
34th Report - Department for Busin…
BBLS fraud losses of £1.9 billion likely underestimate the true total
The Department has estimated that total losses due to fraud on the BBLS will be at least £1.9 billion. This figure is the sum of losses on defaulted loans that lenders have reported as suspected fraud, and future losses estimated … Read more
Government Response
The government acknowledges the estimated £1.9 billion BBLS fraud losses and commits to providing key findings from the National Investigation Service (NATIS) audit by August 2026, along with information on the Insolvency Service's performance in recovering fraud losses by July 2026.
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27 Conclusion
34th Report - Department for Busin…
Most Covid loan scheme defaults attributed to company failure, not fraud
The Department told us, for context, that around £20 billion of the loans issued by lenders under its Covid loan guarantee schemes (which included the Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme, as well … Read more
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28 Conclusion
34th Report - Department for Busin…
Department employing in-house teams and BBB audit for diverse counter-fraud activities
The Department told us that it is tackling fraud in a range of ways. These include the in-house fraud team which oversees all the counter-fraud activity, an audit and assurance process carried out by BBB with oversight from a Board, … Read more
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29 Conclusion Accepted
34th Report - Department for Busin…
Department outsources complex fraud cases; NATIS recovered £8.6 million in 2023-24
The Department explained that it also outsources the most complex cases to a provider, to follow up on the most extreme and serious cases of fraud. These cases are complex and detailed, and take a while to appear as a … Read more
Government Response
The government commits to providing key findings from the National Investigation Service (NATIS) audit, including the value of recoveries, to the Committee by August 2026, and will provide an update on the Insolvency Service's performance in recovering fraud losses by July 2026.
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30 Conclusion
34th Report - Department for Busin…
BBLS 100% guarantee reduces lender incentive for fraud recovery efforts
The Department explained that the first and primary responsibility for chasing fraud remains with the lenders. Due to the 100% guarantee provided to lenders under the BBLS, the incentive is not there to recover fraudulent loans. The Department has, however, … Read more
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31 Conclusion
34th Report - Department for Busin…
Department withdrew £376 million BBLS loans from guarantee, shifting risk to lenders
The Department told us that as a result of assurance activity which has involved data and analytics, £1.1 billion of loans have been withdrawn from guarantee cover, meaning that any losses on these loans are borne by the 44 DBT … Read more
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32 Conclusion
34th Report - Department for Busin…
BBLS saved businesses, but its design hinders effective fraud and error tackling
The Department told us that at the time the BBLS was set up, the real worry was the number of businesses which could fail, and up to around half a million businesses were sustained by the intervention. However, the scheme … Read more
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33 Conclusion Accepted
34th Report - Department for Busin…
Department lacks clarity on recovered BBLS fraud losses and recovery methods.
We wrote to the Department, following our evidence session on 7 April, to obtain greater clarity on the value of losses to fraud that have since been recovered. We specifically requested the value of losses recovered which were incurred due … Read more
Government Response
The government acknowledges the Department's inability to confirm BBLS fraud recovery values and commits to providing key findings from the National Investigation Service (NATIS) audit by August 2026, and information on the Insolvency Service's performance in recovering fraud losses by July 2026.
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34 Conclusion Accepted
34th Report - Department for Busin…
Ineffective NATIS contract terminated after costing £38.5m for only 14 convictions.
On 15 May 2025 the Minister for Services, Small Business and Exports issued a statement announcing that the Department will not renew the contract with NATIS, instead the Insolvency Service will take over the remaining casework.54 In the accompanying press … Read more
Government Response
The government agrees with the implicit recommendations. It commits to providing key findings from the NATIS audit by August 2026 and information on the Insolvency Service's performance in recovering fraud losses by July 2026.
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35 Conclusion Acknowledged
34th Report - Department for Busin…
Department for Business and Trade created in 2023 from predecessor departments.
The Department for Business and Trade (the Department) was formed in February 2023 as one of three Government Departments which replaced the Department for Business, Energy and Industrial Strategy (BEIS). This action, is known as a ‘machinery of Government change’. … Read more
Government Response
The government acknowledges the creation of the Department for Business and Trade in February 2023.
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36 Conclusion
34th Report - Department for Busin…
DBT's financial statements became complex, encompassing eighteen new arm's length bodies.
Government departments prepare financial statements in accordance with the International Financial Reporting Standards (IFRS) and the Government Financial Reporting Manual (FReM).57 As a result of the inclusion of the balances and transactions relating to the business-focused elements of BEIS the … Read more
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37 Conclusion
34th Report - Department for Busin…
Department published 2023-24 accounts ten months late, missing HM Treasury deadline.
HM Treasury sets timetable expectations for the laying of Departmental resource accounts before Parliament in a ‘Dear Accounting Officer’ letter. This provides direction to Accounting Officers of Departments and other public bodies on preparing their Annual Report and Accounts under … Read more
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38 Conclusion
34th Report - Department for Busin…
Account publication delayed by merging predecessor data, complex balances, and Post Office provisions.
The Department told us that the delay in publishing its 2023–24 accounts was due to three key reasons. These were: the requirement to merge the financial information of its predecessor departments; the challenging learning curve required to account for more … Read more
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39 Conclusion
34th Report - Department for Busin…
Merging predecessor departments' financial information for three years proved a huge endeavour.
The Department explained challenges it faced in being required to merge the financial information of its predecessor departments to present three years of financial information. As instructed by the FReM, the Department was required to restate comparatives for the previous … Read more
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40 Conclusion Accepted
34th Report - Department for Busin…
Lower materiality threshold for DBT accounts increased complexity and workload from inherited balances.
The Department said that the increased complexity of its accounts when compared to those of DIT was driven by balances moving across from BEIS.64 These balances had to be accounted for to a much higher level of precision due to … Read more
Government Response
The government agrees with the Committee's observation and confirms that Annual Report and Accounts production and audit are progressing well, on target for a September 2025 publication, and will inform the Committee if the deadline is at risk.
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41 Conclusion Acknowledged
34th Report - Department for Busin…
Insufficient finance team experience for complex accounts necessitated recruitment of hundreds of staff.
The second key reason the Department gave for the delay in the completion of its 2023–24 accounts was that the finance team who were tasked with producing the accounts previously worked in DIT and had to understand the complex balances … Read more
Government Response
The government acknowledges the committee's conclusion regarding delays in its 2023-24 accounts due to finance team capability and complexity. It reports that Annual Report and Accounts production is progressing well and is on target for a September publication.
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42 Conclusion Accepted
34th Report - Department for Busin…
Complexity and uncertainty of Post Office compensation provisions delayed accounts completion.
The third reason given by the Department for delays to the completion of its 2023–24 accounts was the Post Office provisions. This was due to: the complexity in estimating the provision liabilities; the effort required to justify those estimates; and … Read more
Government Response
The government agrees with the committee's conclusion regarding the complexities of Post Office provisions delaying accounts. It commits to finalizing HSS letters by September 2025, reviewing the HSS closure date recommendation by October 2025, and writing to unregistered HCRS individuals by September 2025 to encourage applications.
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43 Conclusion Accepted
34th Report - Department for Busin…
Delayed publication of Department's accounts undermines parliamentary scrutiny and public assurance.
The Department stated that it has worked to bring forward the delivery of its 2024–25 accounts to September 2025, a four-month improvement in timeliness. To do so, the Department said it had performed a significant lessons-learned exercise alongside the National … Read more
Government Response
The government agrees with the Committee's observation, stating that the Annual Report and Accounts production is on target for a September 2025 publication and commits to informing the Committee should this deadline be missed.
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44 Conclusion Accepted
34th Report - Department for Busin…
Machinery of Government change necessitated developing new, consistent governance and control frameworks.
Alongside producing a more complex set of accounts in a timely manner, the Machinery of Government change meant that the Department had to develop a new framework of governance, risk management and control for an organisation comprised of teams from … Read more
Government Response
The government acknowledges the challenges of developing new governance and control frameworks due to Machinery of Government changes, stating that Annual Report and Accounts production and audit are on target for September 2025 and committing to inform the Committee if this deadline is missed.
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45 Conclusion Acknowledged
34th Report - Department for Busin…
Department's 2023-24 control framework received 'limited' assurance due to significant weaknesses.
This control framework is subject to annual review by the Government Internal Audit Agency (GIAA). GIAA provides four levels of assurance opinion following its reviews: substantial, moderate, limited or unsatisfactory.80 The conclusion for the Department in 2023–24 was ‘limited’, indicating … Read more
Government Response
The government acknowledges the committee's conclusion regarding the 'limited' GIAA assurance on its control framework. It reports that Annual Report and Accounts production is progressing well and is on target for a September publication.
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46 Conclusion Accepted
34th Report - Department for Busin…
GIAA identified six control themes requiring action, exacerbated by Machinery of Government changes.
The GIAA highlighted six themes which required action to strengthen controls: Machinery of Government Change; Capacity and Capability; Governance; Strategy and Business Planning; First Line of Defence; and 75 HM Treasury, DAO 03/24 Accounts Directions 2024–25, January 2025 76 Q … Read more
Government Response
The government agrees with the committee's implicit recommendation to address themes requiring action to strengthen controls, setting a September 2025 target date for the Annual Report and Accounts publication, which it states is progressing well and on target.
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47 Conclusion Accepted
34th Report - Department for Busin…
Department anticipates 'moderate' assurance for 2024-25 after improving its governance framework.
The Department said that the need to build up teams due to the organisational changes was the key factor in this opinion being received and that appropriate governance structures were not in place for the full financial year. The Department … Read more
Government Response
The government agrees with the Committee's observation and states that the Annual Report and Accounts production and audit are progressing well and are on target for a September 2025 publication, with a commitment to notify if the deadline is missed.
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2 Conclusion Accepted
33rd Report - Supporting the UK’s …
Develop collaboration with other departments, formalising sector roles and improving intelligence sharing.
The Department is not working effectively enough with other departments to support industry and achieve the greatest impact. The Department views the economy through the lens of 10 economic sectors and 41 sub-sectors. While the Department is responsible for supporting … Read more
Government Response
The government states it developed the Industrial Strategy in partnership with other departments, established governance and boards for coordination, and implemented a new digital Strategic Company Insight Tool (SCIT) to improve cross-government intelligence sharing, with usage currently expanding.
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3 Conclusion Accepted
33rd Report - Supporting the UK’s …
Consolidate understanding of industry support and improve reporting to inform future decision-making.
The Department lacks a comprehensive understanding of its support for industry, including how much it spends per sector and the types of support it offers. The Department supports industry through a range of interventions, which vary in form and scale. … Read more
Government Response
The government states it will collaborate across government to enhance tracking and reporting of support to Industrial Strategy sectors, refine sector definitions, and conduct strategic analysis to assess policy effectiveness and economic trends.
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4 Conclusion Accepted
33rd Report - Supporting the UK’s …
Provide greater transparency on factors and processes used for balancing industry support decisions.
It is not clear how the Department balances multiple government objectives, such as growth and net zero, when making decisions about how to support industry. Government needs to consider a wide range of metrics when making investment decisions including employment, … Read more
Government Response
The government will provide greater transparency by using new 'place-based business cases' and supplementary guidance to assess projects and private sector contributions. It will also work with various bodies to maximise the impact of business-facing funds, with an approach already outlined in the Industrial Strategy's Technical Annex and a new supply chain centre being established.
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5 Conclusion Accepted
33rd Report - Supporting the UK’s …
Review internal structures and resourcing to align with Industrial Strategy objectives and emerging issues.
There is a risk that the Department is not set up internally to support the aims of the forthcoming Industrial Strategy and to respond to ongoing issues facing UK businesses. The composition of sector teams in the Department’s Business Group … Read more
Government Response
The government states it has transitioned the Industrial Strategy Unit into a permanent delivery unit and has set out plans to restructure teams to focus on Industrial Strategy delivery, with this transformation already in progress and mostly completed by Spring 2026.
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6 Conclusion Accepted
33rd Report - Supporting the UK’s …
Update Committee on Industrial Strategy adaptation and metrics for measuring its success.
It is essential that the government’s forthcoming Industrial Strategy has clear measures of success and effective processes for monitoring and evaluation. The government’s forthcoming Industrial Strategy is central to its economic growth mission. The Department is placing great emphasis on … Read more
Government Response
The government has committed to regularly reviewing progress against the Industrial Strategy, supported by the ISAC, and has implemented a public monitoring and evaluation approach underpinned by an impact pathway outlined in the technical annex. All government departments will carry out monitoring and evaluation for their individual policies and Sector Plans.
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1 Conclusion Accepted
33rd Report - Supporting the UK’s …
Committee reviewed evidence on government support for UK’s priority industry sectors
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business and Trade (the Department) and HM Treasury on support for the UK’s priority industry sectors.1
Government Response
The government states it conducted a detailed consultation, introduced a cross-government Account Management initiative with dedicated account managers and ministerial engagement, and established a dedicated area to coordinate business engagement. It also published 'The UK’s Modern Industrial Strategy' and will explore establishing dedicated Sector Offices.
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7 Recommendation Accepted
33rd Report - Supporting the UK’s …
Businesses receive duplicate or conflicting information from multiple government departments
To support industry, government must listen to the needs of businesses. The Department told us that while every government department engages with industry in some form, the Department for Business and Trade aspires to be a ‘front door’ for all … Read more
Government Response
The government conducted a detailed consultation with business through the green paper Invest 2035, introduced a cross-government Account Management initiative, appointing dedicated account managers to lead strategic relationships with key businesses, and established a dedicated area to coordinate business engagement and insights.
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8 Recommendation Accepted
33rd Report - Supporting the UK’s …
Department improved intelligence sharing and single account management for top businesses
The Department recognised the importance of sharing business intelligence across government. It said that while the legal and technical issues surrounding this could be resolved, creating the right culture and incentives was harder. The Department told us it takes an … Read more
Government Response
The government has developed a new cross government digital customer relationship management system called the Strategic Company Insight Tool (SCIT) to improve the sharing of business intelligence, enable logging of business engagements, sharing company statistics, business insights and government priorities for engagement.
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9 Recommendation Accepted
33rd Report - Supporting the UK’s …
Department struggles monitoring sector engagement with inaccessible digital systems and inconsistent records
We asked the Department about its ability to monitor its engagement with economic sectors, given that officials do not consistently record their interactions with companies, and its digital system — DataHub — is not accessible across the whole of Whitehall.17 … Read more
Government Response
The government developed a cross government digital customer relationship management system called the Strategic Company Insight Tool (SCIT) to improve the sharing of business intelligence.
HM Treasury
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10 Recommendation Acknowledged
33rd Report - Supporting the UK’s …
Department must collaborate with multiple government departments to achieve its business objectives
While the Department is responsible for supporting businesses overall, it does not ‘own’ every sector of the economy nor is it responsible for every support intervention delivered by government. Many of the levers needed to bring about change to the … Read more
Government Response
The government acknowledges the recommendation and states the department developed the whole of the Industrial Strategy in partnership with other departments, with Sector Plans led by relevant departments and that this is an ongoing programme.
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11 Recommendation Acknowledged
33rd Report - Supporting the UK’s …
Department's inter-departmental working relationships vary, with limited adoption of handshake agreements
The Department’s working relationships with others in government vary in maturity and other government departments have mixed views on the Department’s remit.20 To agree roles and responsibilities between departments, the Department told us it had introduced ‘handshake agreements’.21 However, the … Read more
Government Response
The government acknowledges the recommendation and states the department developed the whole of the Industrial Strategy in partnership with other departments, with Sector Plans led by relevant departments and that this is an ongoing programme.
HM Treasury
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12 Conclusion Accepted
33rd Report - Supporting the UK’s …
Office for Life Sciences model shows potential for integrated cross-departmental working
In the absence of formal agreements, the NAO reported that teams had taken different approaches to agree roles and that structures had emerged to overcome cross-departmental barriers.24 The Department highlighted the Office for Life Sciences (OLS), its cross-department skills forum, … Read more
Government Response
The department developed the whole of the Industrial Strategy in partnership with other departments and this ongoing programme of work involves sector councils and taskforces.
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13 Recommendation Acknowledged
33rd Report - Supporting the UK’s …
Department significantly improved sharing business intelligence reports across Whitehall departments
To monitor the performance of economic sectors and share information, the Department produces business intelligence products. The Department told us it recognised these products had not previously been shared well across Whitehall and that it had taken steps to do … Read more
Government Response
The government acknowledges the recommendation and states the department developed the whole of the Industrial Strategy in partnership with other departments, with Sector Plans led by relevant departments and that this is an ongoing programme.
HM Treasury
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14 Conclusion Acknowledged
33rd Report - Supporting the UK’s …
Department directly supports industry through varied interventions including grants and sector funds
While it is not the only department to do so, the Department for Business and Trade directly supports industry through a range of interventions with a range of policy objectives. Some of the Department’s interventions are aimed at specific sectors … Read more
Government Response
The department currently supports industry through a range of interventions, the scale and form of which varies greatly, spending £790.9 million on business support grants in 2023–24, with 62.5% going to the advanced manufacturing sector and 29.9% to the energy sector.
HM Treasury
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15 Conclusion Acknowledged
33rd Report - Supporting the UK’s …
Department tracks overall spending but lacks systems to breakdown support by type
The Department tracks its programme spending, grant expenditure and Business Group resource spending across sector teams but does not have processes to break this down by support type using existing systems. In 2023–24, the Department spent £790.9 million on business … Read more
Government Response
The department currently supports industry through a range of interventions, the scale and form of which varies greatly, spending £790.9 million on business support grants in 2023–24, with 62.5% going to the advanced manufacturing sector and 29.9% to the energy sector.
HM Treasury
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16 Recommendation Accepted
33rd Report - Supporting the UK’s …
Department lacks complete overview and accurate data on industry support spending
The Department does not have a complete overview or accurate data on what it, and wider government, spends on supporting industry. The Department found it difficult to readily provide the NAO with a breakdown of its support for industry. It … Read more
Government Response
The government will collaborate across government and public bodies to enhance tracking and reporting of support to the Industrial Strategy sectors, refine sector definitions, and conduct strategic analysis to assess policy effectiveness and economic trends.
HM Treasury
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17 Conclusion Acknowledged
33rd Report - Supporting the UK’s …
Department lacks standardised approach for balancing metrics in industry support decisions
While its primary objective is economic growth, the Department uses a range of metrics to guide its work, some of which require trade-offs. Factors considered by the Department when designing support initiatives include GVA, net zero ambitions, and national security. … Read more
Government Response
The government is aligning industry support with strategic priorities, including the Industrial Strategy, and will use new 'place-based business cases' to assess complementary projects in specific regions, with supplementary guidance on economic resilience.
HM Treasury
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18 Conclusion Acknowledged
33rd Report - Supporting the UK’s …
Ministerial decisions on industry support trade-offs lack explicit, detailed methodology
We asked the Department how it balances trade-offs when making decisions about support, and how it makes this explicit. Officials told us that it assesses interventions using HM Treasury’s five principles. Proposals are then put to Ministers who make decisions … Read more
Government Response
The government is aligning industry support with strategic priorities, including the Industrial Strategy, and will use new 'place-based business cases' to assess complementary projects in specific regions, with supplementary guidance on economic resilience.
HM Treasury
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19 Conclusion Acknowledged
33rd Report - Supporting the UK’s …
Government prioritises eight growth sectors while recognising broader foundational industries
The Department noted that one of the criticisms of the 2017 Industrial Strategy was that it was too broad and not enough choices were made. The government has now designated eight growth-driving sectors, and the Department told us these were … Read more
Government Response
The government is aligning industry support with strategic priorities, including the Industrial Strategy, and will use new 'place-based business cases' to assess complementary projects in specific regions, with supplementary guidance on economic resilience.
HM Treasury
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20 Recommendation Accepted
33rd Report - Supporting the UK’s …
Cross-Whitehall collaboration essential for Industrial Strategy delivery despite misaligned objectives
We asked the Department to clarify its relationships with other departments and the influence it has in decision-making and trade-offs.40 The Department recognised it cannot deliver the forthcoming Industrial Strategy in isolation, and that other government departments have a role … Read more
Government Response
The government developed a cross government digital customer relationship management system called the Strategic Company Insight Tool (SCIT) to improve the sharing of business intelligence.
HM Treasury
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21 Conclusion Acknowledged
33rd Report - Supporting the UK’s …
Departmental sector team staffing levels lack correlation with industry importance or spending
Following its formation in February 2023, the Department consolidated teams from the former BEIS and DIT into 25 sector-facing teams within its Business Group. These sector teams vary by size and grade distribution. The Department’s Business Group also has teams … Read more
Government Response
The department will ensure effective implementation of the Industrial Strategy by using a permanent delivery unit and restructuring teams, which will be mostly completed by Spring 2026.
HM Treasury
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22 Conclusion Acknowledged
33rd Report - Supporting the UK’s …
Department reviewing resource allocation to align with Industrial Strategy priority sectors
We asked the Department about its overall priorities and whether it had aligned its resources accordingly. The Department explained that when the former DIT and BEIS merged, two sets of teams came together, which it structured around 10 economic sectors. … Read more
Government Response
The department will ensure effective implementation of the Industrial Strategy by using a permanent delivery unit and restructuring teams, which will be mostly completed by Spring 2026.
HM Treasury
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23 Conclusion Acknowledged
33rd Report - Supporting the UK’s …
Department demonstrates agility for urgent issues but faces specialist recruitment challenges
We asked the Department if it was agile enough to respond to emerging issues such as changing tariff rates affecting UK businesses. The Department told us it understands the importance of ‘surging’ resource to where it is needed most urgently, … Read more
Government Response
The department will ensure effective implementation of the Industrial Strategy by using a permanent delivery unit and restructuring teams, which will be mostly completed by Spring 2026.
HM Treasury
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24 Recommendation Acknowledged
33rd Report - Supporting the UK’s …
Forthcoming Industrial Strategy focuses on eight growth sectors with industry partnership
The government’s forthcoming Industrial Strategy, which aims to channel support to eight growth-driving sectors, is expected to be published in spring 2025 alongside the Spending Review.49 The Department told us the eight priority sectors were collectively responsible for 30% of … Read more
Government Response
The government has committed to regularly reviewing progress against the Industrial Strategy, supported by the ISAC through its expertise on monitoring and evaluation and continued advice on policy development and delivery.
HM Treasury
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25 Conclusion
33rd Report - Supporting the UK’s …
Industrial Strategy prioritisation of growth sectors may disappoint other industries
The Department said it recognises that, with limited resources, it will be required to make difficult decisions about what it is prioritising in the forthcoming Strategy, noting that “some people will be disappointed in what we are able to do … Read more
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26 Conclusion
33rd Report - Supporting the UK’s …
Department unable to detail Industrial Strategy's future funding and scope currently.
We asked the Department what the forthcoming Industrial Strategy will mean for the scale and composition of its support for industry going forward. The Department told us it was preparing for an upcoming spending review and therefore could not provide … Read more
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27 Conclusion
33rd Report - Supporting the UK’s …
Inconsistent monitoring and evaluation evident across Department's industry support programmes.
We asked the Department about gaps in its monitoring and evaluation of support programmes.54 Of the Department’s Business Group’s 32 initiatives to support sectors, it provided monitoring and evaluation evidence for just 11.55 The Department told us there is a … Read more
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28 Conclusion
33rd Report - Supporting the UK’s …
Department lacks specific objectives for Industrial Strategy despite setting a growth target.
We asked the Department how it would measure success. Officials told us growth was its overarching objective as measured by GDP per head and real household disposable income. The Department highlighted that trade-offs were required under an industrial strategy and … Read more
HM Treasury
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Government Response AI assessment · 61 of 12 classified
Accepted 39
Accepted in Part 1
Acknowledged 20
Not Addressed 1
Total 12 recs + 63 conclusions
Correspondence 3 letters
8 May 2025 To committee Letter from the Permanent Secretary of the Department for Business and Trade relating to the follow up on the Work of the Department for Business and Trade inquiry, 02 May 2025
Parliament page
28 Apr 2025 To committee Letter from the Permanent Secretary of the Department for Business and Trade relating to the correction to the transcript of the session on 07 April 2025, 23 April 2025
Parliament page
24 Apr 2025 From committee Letter to the Permanent Secretary of the Department for Business and Trade relating to the oral evidence session held on 07 April 2025 on the Work of the Department for Business and Trade, 09 April 2025
Parliament page