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Economic Policy: Report Urges Lessons to Be Learned From Covid Business Support Programme Losses
Just 1% of the estimated £1.1bn lost from the UK government’s Covid business support programme in England as a result of fraud and error has been recovered so far, according to a report by the National Audit Office (NAO). The report calls for ministers to learn lessons from the scheme, which suffered an “overwhelming majority” of fraud and error during its initial incarnation, launched in March 2023, which did not require prepayment checks.
Initial Fraud and Error Rampant in Grant Scheme’s Fast-Tracked Development: NAO
Eight separate grant schemes for businesses, administered by UK local authorities, were developed and launched at an accelerated pace – but without any shared contingency plan between local and national government on how to support businesses in the event of an emergency, the NAO said. This led to an initial wave of fraud and error, which the report said amounted to just under 5% of the total £1.1bn sum handed out. Later versions of the grants included prepayment checks and used much more accurate local information on businesses.
Contingency Plans Urge:
The report urges the Department for Business and Trade (DBT) and the UK Treasury, working with councils, to draw up formal contingency plans by the end of this year about financial support during future national emergencies, using the lessons of the Covid scheme. NAO chief Gareth Davies praised the speed at which the grants were set up and distributed, but said a full assessment of their value remained open, adding that lessons could now be used to improve contingency planning for future crises.
