13 Rejected

We asked the Department whether in retrospect it had struck the right balance between applying...

Conclusion
We asked the Department whether in retrospect it had struck the right balance between applying due diligence and how quickly funding reached organisations. The Department and ACE assured us that they were not aware of any organisation that had fallen into difficulty because of the timing of the receipt of an award.32 ACE told us that at the start of the pandemic it had made an emergency response fund of up to £160 million available to organisations from April onwards as a stopgap to manage, for example, cashflow challenges. It believed this funding gave the sector some time before the Culture Recovery Fund came along.33
Government Response Summary
The government rejects the committee's implied criticism regarding the balance between due diligence and funding speed for the Culture Recovery Fund, stating that further streamlining would have risked the fund's propriety.
Government Response
Rejected
HM Government Rejected
3.1 The government disagrees with the Committee’s recommendation. 3.2 Firstly, on the point concerning streamlined funding processes and demands on applicants, the Culture Recovery Fund (CRF), characteristic of all COVID-19 pandemic funding, was delivered at pace and at unprecedented scale to provide emergency relief to a sector in severe economic distress. However, the need to ensure that money was distributed quickly needed to be balanced with factors such as ensuring proper allocation of taxpayers’ money, reducing the risk of fraud, and the need to provide a high-quality service to people who interacted with the programme. 3.3 The funding process for CRF was made as streamlined as possible in order to fulfil the core policy aims of the fund, and the conditions on the funding determined by government ministers. In DCMS’s view, any further streamlining or reduction in the grant making process would have put at risk the propriety of the fund’s delivery.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.1 yrs
Report published 23 Jun 2021