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Specialist skills for company distress are concentrated centrally, resulting in patchy government capabilities.
Recommendation
The Treasury told us that having the right skills and capabilities in place is “a really critical lesson” highlighted by the NAO’s report. It acknowledged that these skills are currently “patchy across government”.61 The relevant specialist skills for responding to company distress situations are concentrated mainly at the centre of government.62 The Treasury told us that its special situations team, UKGI and the Cabinet Office were the “three pockets in the centre” that held the “expertise and experience in both the framework and the practice of how this all works.”63 UKGI told us that its special situations team of 18 has a total of 225 years of experience of financial distress, and has been involved in over 200 cases where distressed companies had approached government in the last six years.64 We also heard how these three central teams are “more in the restructuring business” as they have become trusted by companies who “tell us stuff confidentially so we can be part of the solution”.65
Government Response
A response document is linked to this report, dated 28 May 2024. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
Twentieth Report - Monitoring and responding to companies in distress
13 Mar 2024
HC 425
Addressee Bodies
HM Treasury
Timeline
Recommendation age
2.5 yrs
Report published
13 Mar 2024