Forty-Fifth Report - Department for Business, Energy & Industrial Strategy Annual Report and Accounts 2021–22

Select Committee
Public Accounts Committee HC 1254 26 April 2023
Report Status Government responded
Conclusions & Recommendations 24 items (6 recs)
Government Response (AI assessment · 24 of 24 classified)
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Forty fifth report from Session 2022-23 · published 27 Jun 2023

Recommendations & Conclusions

2 results
8 Conclusion Deferred
High levels of unrecovered fraud and error found in first wave business grants.
Conclusion
The Department estimated fraud and error levels of £985 million were contained in the £11.7 billion grant funding provided for the first wave of business support grant schemes (Small Business Grant Fund; Retail Hospitality and Leisure Grant Fund; and Local … Read more
Government Response Summary
The government agrees with the committee's observations but states that recovery of irregular payments for early grant schemes is largely unrealistic. It has initiated a review by a Non-Executive Director into ongoing assurance, reconciliation, and recovery activity, with a target conclusion by Summer/early Autumn 2023, but does not address the point about disaggregating fraud and error estimates.
HM Treasury
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9 Conclusion Deferred
Delayed recovery of fraud and error in business grants risking further losses.
Conclusion
Of the £985 million estimate of fraud and error for the first wave of business support grant schemes, the Department has recovered £5.3 million through NATIS and local authorities.16 This represents 0.7% of the fraud and error estimate. The Department … Read more
Government Response Summary
The government agrees with the committee's concern but states that recovery for many irregular payments is unrealistic due to various factors. It has initiated a review by a Non-Executive Director into assurance, reconciliation, and recovery activity, expected to conclude by Summer/early Autumn 2023.
HM Treasury
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