The report highlights “severe weaknesses” in how DCMS has managed the loan book, including a conflict of interest with Rugby Union
The Department for Culture, Media and Sport has been criticised for its management of loans given to sports organisations during covid, as over £400 million in loans have still not been paid back.
The report by the Public Accounts Committee published yesterday notes that there is a high degree of uncertainty over how much of the loans will ever be repaid and that the DCMS had been “overly optimistic” about repayments.
Between October 2020 and March 2022, the DCMS lent a total of £474 million to 120
borrowers in the culture and sports sectors, to help these organisations survive in the pandemic.
By October 2024, just under half of borrowers had started repaying their loans, and DCMS had received £41 million in expected repayments.
In addition, nine borrowers which had collectively received loans totalling £46 million had gone into administration by October 2024.
The report also highlights a conflict of interest involving the accounting officer’s connections with Rugby Union.
Loans to top–tier professional rugby union clubs in the Premiership Rugby League accounted for 57% (£124 million) of the Department’s Covid loans to sports bodies.
The report concluded that “There have been severe weaknesses from the start in the Department’s arrangements for managing its loan book.”
These included the DCMS not drawing on expertise across government when setting up the loan schemes. It also notes that too many organisations were involved in managing the loans, including the department, Sport England, Arts Council England and PwC.
Olivia Barber is a reporter at Left Foot Forward
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