The then Permanent Secretary of the United Kingdom Department for Business, Energy and Industrial Strategy, Alex Chisholm (pictured) stalled on the delivery of a fund to support small businesses affected by the Coronavirus crisis, saying it was impossible to determine if the scheme could deliver value for money.
Chancellor, Rishi Sunak announced grants worth £10,000 ($A19,200) for small businesses affected by the outbreak of COVID-19 with around 730,000 likely claimants.
However, Mr Chisholm, who has since been named Chief Operating Officer for the Public Service, said he would need a written direction from his Minister, Alok Sharma to press ahead with the fund.
Admitting there was “good policy rationale” for the announcement, Mr Chisholm said that as accounting officer for the Department, it had not been possible to demonstrate that the fund was likely to represent value for money.
Under Public Service rules accounting officers must determine that policy proposals demonstrate value for money to the standards set out in the Treasury’s Managing Public Money guidance.
“At this point in time, it is understandable that it is not possible to confidently estimate the extent to which this funding will help small businesses successfully navigate the impacts of COVID-19,” Mr Chisholm said.
“Given the unique circumstances we find ourselves in, there is no evidence on which to base a reliable assessment of the likely net impact of the fund,” he said.
He said there were “doubts about the full feasibility of this scheme”, given the speed at which Local Authorities were expected to distribute the funds, and the challenges of delivering a new scheme effectively during a pandemic.
Mr Chisholm subsequently received the required written direction from Mr Sharma.
London 2 May, 2020
