By Vivienne Russell | 4 July 2014
Whitehall’s grant-making activities are not well co-ordinated and there is no central register of those currently in operation, the National Audit Office has said.
Grant spending makes up 41% (£292bn) of the £715bn total government expenditure and can be used to fund elements of the public sector including local authorities, bodies such as universities and charities, and individuals such as students. Grants can also be used to provide finance to commercial organisations to boost economic activity, such as through the Coastal Communities Fund.
However, auditors concluded that government gives the funding mechanism relatively little attention compared to others.
NAO head Amyas Morse said grants should not be the default funding option as other alternatives may offer better value for money.
‘There is no central good practice guidance and limited central data to support departments in implementing efficient and effective grant programmes,’ he said.
‘The Cabinet Office has begun work to improve government’s use of grants, but this is at an early stage and will need more support from departments to be successful.’
The auditors also noted that different parts of government provide funds to the same recipients, with some universities and charities receiving more than 10 different grants.
‘With a lack of information on recipients beyond that help by individual programmes, the government typically cannot identify whether recipients are receiving other payments,’ the watchdog said.
