UK Parliament’s Public Accounts Committee (PAC) has published a report on the Department for Culture, Media and Sport’s (DCMS) management of COVID-19 loans to the culture and sports sectors, finding the programme was weakly managed from the outset and warning that DCMS is overly optimistic in expecting to recoup all funds given continuing uncertainty over repayments. DCMS lent GBP 474m to 120 borrowers between 2020 and 2024. By October 2024 it had received GBP 41m, representing 97% of expected repayments, while loans worth over GBP 400m remained outstanding; nine borrowers that received GBP 46m had become insolvent and over half of borrowers had not made any repayments. The PAC also points to GBP 17m in loan management costs to date and says DCMS could not state when in-house management costs would exceed repayments received. Its inquiry highlights loans to top-tier Premiership rugby union clubs, which received 57% (GBP 124m) of DCMS’ sports loans, and notes the insolvency of three clubs by June 2023 owing government GBP 41.6m; the PAC argues COVID support loans should not be extended to support bodies that are financially unviable five years after the pandemic. The PAC calls on DCMS to assess long-term options for the loan book, including an outright sale, and to demonstrate a tougher approach in managing borrowers in difficulty. It also flags a gap in parliamentary accountability for the rugby union loans linked to a conflict of interest involving the Permanent Secretary’s connections with the sport, and suggests DCMS should have arranged alternative senior scrutiny and assurance.

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