Eighth Report - COVID 19: Culture Recovery Fund
Select Committee
Public Accounts Committee
HC 340
23 June 2021
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Eighth report from Session 2021-22 · published 28 Oct 2021
Recommendations & Conclusions
14 results
2
Recommendation
Accepted
We are concerned about the Department’s and Arts Council England’s ability to manage the significant...
Recommendation
We are concerned about the Department’s and Arts Council England’s ability to manage the significant and ongoing loan book commitments created by the Culture Recovery Fund. As a result of repayable finance awarded under the Culture Recovery Fund, Arts Council …
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Government Response Summary
The government accepts the recommendation, agreeing to set out how it will ensure resources are in place for managing loans and draw on cross-government learning, with a target implementation date of December 2021 and a commitment to provide further updates then.
HM Treasury
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4
Recommendation
Accepted
The Department lacks a comprehensive understanding of the coverage and impact of its funding on...
Recommendation
The Department lacks a comprehensive understanding of the coverage and impact of its funding on parts of the sector which found themselves without funds. The Department and its arm’s-length bodies have distributed around £1.2 billion to 5,000 organisations and the …
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Government Response Summary
The government agrees to write to the Committee by mid-September 2021, outlining its intentions to support under-represented groups, but disputes the Committee's assertion that it lacks understanding of funding impact.
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5
Recommendation
Accepted
It remains to be seen whether the Department has achieved its objectives for the Culture...
Recommendation
It remains to be seen whether the Department has achieved its objectives for the Culture Recovery Fund and secured longer-term value for money. The Department and its arm’s-length bodies are looking to build on the new relationships they have made …
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Government Response Summary
The government accepts the recommendation and states that its externally commissioned evaluation of the Culture Recovery Fund, due by March 2022, will assess performance against objectives using various metrics including cultural output, financial health, trading status, employment, and a cost-benefit analysis for value for money.
HM Treasury
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6
Recommendation
Accepted
The taxpayer’s investment in the sector, and the Department’s future role in overseeing it, present...
Recommendation
The taxpayer’s investment in the sector, and the Department’s future role in overseeing it, present a huge opportunity for the Department to step up its support and advocacy for the sector. The Department has gained a lot of new information …
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Government Response Summary
The government accepts the recommendation and commits that the DCMS Permanent Secretary will write to the Committee by December 2021, outlining key challenges, advocacy opportunities, and how future cultural and economic impacts, including for export, will be realised from the Culture Recovery Fund.
HM Treasury
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9
Conclusion
Accepted
We questioned the Department about its assessment of the profile for default on loans and...
Conclusion
We questioned the Department about its assessment of the profile for default on loans and what plan it and ACE had to tackle organisations defaulting on their loans. The Department told us that it had developed a profile of default. …
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Government Response Summary
The government accepts the recommendation to outline how it will manage loan book commitments, confirming officials are working to establish the appropriate mechanism and ensure sufficient resources by December 2021.
HM Treasury
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16
Recommendation
Accepted
We asked the Department whether some organisations had been excluded from the support offered by...
Recommendation
We asked the Department whether some organisations had been excluded from the support offered by the fund and whether certain regions or sectors had been under- represented in the applications.43 We also asked whether it should have a relationship manager …
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Government Response Summary
The government accepted the recommendation and committed to writing to the Committee by mid-September 2021 to set out its intentions for supporting under-represented groups like freelancers and festivals, though it disagreed with the premise that it lacked understanding or failed to support these sectors.
HM Treasury
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17
Conclusion
Accepted
The Department considered that the regional breakdown of all the success rates in awards for...
Conclusion
The Department considered that the regional breakdown of all the success rates in awards for the applications it had received suggested that there were parts of the country that had less ‘cultural and heritage fabric’ than others. It asserted that …
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Government Response Summary
The government agrees with the Committee, with a target implementation date of mid-September 2021 for DCMS to write to the Committee on the matter, though it disagrees with the notion that it lacks understanding of funding coverage or impact.
HM Treasury
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19
Recommendation
Accepted
We questioned the Department about the assessments it had made of the long-term impact on...
Recommendation
We questioned the Department about the assessments it had made of the long-term impact on supply chain organisations.51 It told us that supply chain organisations had been eligible to apply for the fund where they were culturally significant, but we …
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Government Response Summary
The government explicitly agrees with the recommendation to ensure the supply chain is represented and commits to writing to the Committee on this matter by mid-September 2021, though it disagrees with lacking understanding or support for the identified sectors.
HM Treasury
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21
Conclusion
Accepted
We asked the Department to tell us how it would be evaluating the success of...
Conclusion
We asked the Department to tell us how it would be evaluating the success of the fund and its value for money, for example measures of the impact on jobs, freelancers and supply-chain organisations. The Department told us that it …
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Government Response Summary
The government agrees with the recommendation to set out evaluation metrics for the Culture Recovery Fund, detailing that an external evaluation will assess impact, process, and value for money, concluding by March 2022.
HM Treasury
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22
Recommendation
Accepted
The Department said it wanted to satisfy itself that organisations in need were supported and...
Recommendation
The Department said it wanted to satisfy itself that organisations in need were supported and that it achieved its objective of supporting a significant proportion of the cultural sector through a very difficult time. It also told us it wanted …
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Government Response Summary
The government accepted the recommendation and will prepare a policy paper for publication in Spring 2022, in parallel with the Culture Recovery Fund's evaluation, to set out lessons learned and how they will be applied to achieve value for money.
HM Treasury
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24
Conclusion
Accepted
We asked ACE what it had learned about the sector.
Conclusion
We asked ACE what it had learned about the sector. It told us that for round one of the fund, about 40% of those organisations it funded were new to it, and for round two of the fund, 23% were …
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Government Response Summary
The government commits to preparing a policy paper, to be published alongside the Culture Recovery Fund evaluation, detailing the lessons learned from the fund's process.
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25
Conclusion
Accepted
We questioned the Department about the future of the sector and what it saw as...
Conclusion
We questioned the Department about the future of the sector and what it saw as emerging risks, given the pandemic situation exceeded the worst-case assumptions when it set up the fund. The Department replied that it did not want to …
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Government Response Summary
The government agrees with the committee's implied recommendation and commits the DCMS Permanent Secretary to write to the Committee by December 2021 to outline key challenges and future cultural and economic impacts from its investment.
HM Treasury
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26
Conclusion
Accepted
We asked what plans ACE had for its funding in future years and how its...
Conclusion
We asked what plans ACE had for its funding in future years and how its future funding could build on innovation, given the effect of the pandemic on the sector. ACE told us that it was very interested in the …
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Government Response Summary
The government agrees with the committee's implied recommendation and commits the DCMS Permanent Secretary to write to the Committee by December 2021 to outline key challenges and future cultural and economic impacts from its investment.
HM Treasury
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27
Recommendation
Accepted
Nationally, the sector contributed £34.6 million to the UK economy in 2019.67 We therefore challenged...
Recommendation
Nationally, the sector contributed £34.6 million to the UK economy in 2019.67 We therefore challenged the Department about its role in overseeing the business aspects of the sector and what it was doing to build the sector including exploiting its …
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Government Response Summary
The government accepts the recommendation and commits to having the DCMS Permanent Secretary write to the Committee by December 2021, outlining how the department will achieve future cultural and economic impacts, including for export.
HM Treasury
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