7 Accepted

We asked the Department that given the pharmacy scheme involved an unusual and novel use...

Conclusion
We asked the Department that given the pharmacy scheme involved an unusual and novel use of public money and in relation to the entire episode with Greensill Capital whether HM Treasury’s initial scepticism about the use of supply chain finance in the NHS has been validated. The Department told us that knowing what it knows now, it would not embark on the scheme again. The Committee asked a broad question about the large percentage of suppliers to government—in the high 90%s—paid within 30 days and many paid even more quickly than that and why that mechanism could not have been used at the time the pharmacy scheme was introduced. The Department highlighted that the new scheme for reimbursing pharmacies that has been introduced following the Greensill collapse means that, as of the month of November, pharmacies send their prescriptions to NHSBSA by the fifth of the month and are reimbursed by NHSBSA in four working days.8
Government Response Summary
The government agrees with the committee's observation and, in response, HM Treasury reissued updated guidance (DAO 03/22) in March 2022, reiterating accounting officers' responsibilities regarding novel and complex financing arrangements.
Government Response
Accepted
HM Government Accepted
1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 In June 2019, HMT published DAO 02/19, which provided guidance to Accounting Officers in respect of novel and complex financing arrangements. 1.3 Following the Committee’s recommendation, on 18 March 2022 HMT reissued an updated version of DAO 02/19 (DAO 03/22). This reissued DAO reiterates accounting officers’ responsibilities in respect of such schemes and sets out the Committee’s recommendation.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.5 yrs
Report published 04 Feb 2022