34th Report - Department for Business and Trade Annual Report and Accounts 2023-24

Select Committee

Public Accounts Committee HC 818 25 June 2025

Report Status Government responded

Conclusions & Recommendations 47 items (3 recs)

Source View on Parliament website

Government Response (AI assessment · 46 of 47 classified)

Accepted 35

Accepted in Part 1

Acknowledged 9

Not Addressed 1

Government response

Treasury minutes: Government response to the Committee of Public Accounts on the Thirty-fourth report from Session 2024-26 · published 18 Sep 2025

Read the government response ↗ Response on the tracker

Recommendations & Conclusions

9 results

3 Conclusion Acknowledged

Set out assessment of financial support and plans for Post Office independence.

Conclusion

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 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 eventually make Post Office Limited financially independent. The Post Office is reliant on the Department for its financial survival. The Department issued a ‘Letter of Support’ to the Post Office in December 2024 which, in addition to the Department’s pre-existing commitment to fund the Post Office’s redress schemes, and an extension of established loan facilities, provides assurance that the Department will continue to provide financial support to help the Post Office to meets its liabilities as they fall due more widely. This includes support for: the running of Horizon remediation matters, Horizon support and technology replacement, taxation related liabilities, and for other potential liabilities. Without this financial support, the Post Office would not be able to meet its liabilities as they fall due. In 2023–24 the Department provided £260 million in grants and subsidies to the Post Office. By 31 March 2024, the Post Office also had total borrowings of £786 million with the Department. The Department has assured the Committee that it is working closely with the Post Office to identify ways to make the Post Office more financially independent. The Department did not consider the Letter of Support to require separate disclosure to Parliament under Managing Public Money requirements. However, the Department has agreed to notify the Committee of the next Letter of Support when it is issued. 5 recommendation a. Alongside its Treasury Minute response to this report, the Department should write to the Committee setting out its assessment of the nature and value of all financial support it might need to provide to Post Office Limited and its plans for working with the Post Office to make it financially independent of government. b. The Department shoul Show less

Government Response Summary

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.

HM Treasury

View Details

17 Conclusion Acknowledged

Department provided £260 million in grants and £786 million in loans to Post Office.

Conclusion

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 Summary

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.

HM Treasury

View Details

18 Conclusion Acknowledged

Letter of Support assures against Post Office financial risks and inability to meet liabilities.

Conclusion

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 Summary

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.

HM Treasury

View Details

19 Conclusion Acknowledged

Letter of Support is a commitment, not a blank cheque or financial guarantee.

Conclusion

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 Summary

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.

HM Treasury

View Details

23 Conclusion Acknowledged

Bounce Back Loan Scheme designed to support small businesses with 100% government guarantee

Conclusion

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 Summary

The government acknowledged its responsibility for the ongoing management of the Bounce Back Loan Scheme.

HM Treasury

View Details

35 Conclusion Acknowledged

Department for Business and Trade created in 2023 from predecessor departments.

Conclusion

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 Summary

The government acknowledges the creation of the Department for Business and Trade in February 2023.

HM Treasury

View Details

38 Conclusion Acknowledged

Account publication delayed by merging predecessor data, complex balances, and Post Office provisions.

Conclusion

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

Government Response Summary

The government agrees with the committee's observation regarding the reasons for past delays in publishing accounts. It notes that the Annual Report and Accounts production and audit are progressing well and are on target for a September 2025 publication.

HM Treasury

View Details

41 Conclusion Acknowledged

Insufficient finance team experience for complex accounts necessitated recruitment of hundreds of staff.

Conclusion

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 Summary

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.

HM Treasury

View Details

45 Conclusion Acknowledged

Department's 2023-24 control framework received 'limited' assurance due to significant weaknesses.

Conclusion

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 Summary

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.

HM Treasury

View Details