Committee publication · Correspondence · 15 July 2025 · HC 450

Letter from DBT Chief Operating Officer relating to ARA June Update, 30 June 2025

Inquiry: The work of the Department for Business and Trade

Summary

The Department for Business and Trade (DBT) updates the Business and Trade Committee on progress toward publishing its 2024–25 Annual Report and Accounts (ARA) in September 2025. The department reports strong engagement with the National Audit Office, timely delivery of draft accounts, and improved internal audit opinion (from 'limited' to 'moderate'). However, significant work remains on Post Office redress scheme provisions, which poses the main risk to the September publication timeline.

Key findings

DBT delivered its first ARA draft on time and will provide the second version on 26 June; NAO describes the department's efforts as 'a step change' compared to 2023–24.
Internal audit opinion improved from 'limited' (2023–24) to 'moderate' (2024–25), with the Head of Internal Audit commending the department for speed of improvement.
Post Office redress provision modelling for Horizon Shortfall Scheme, Horizon Convictions Redress Scheme, and Suspension Remuneration Review requires revisiting; resolving these by end-July to enable September publication is 'challenging' but remains the target.
British Business Banks investment audits and other audit risks are considered resolvable without impacting September publication.
Monthly progress updates to the Committee on ARA production will continue as agreed following the 11 February 2025 meeting.

Tone

Factual

Topics

public-financegovernment-accountsauditpost-office-horizon

Key actors

Tara Smith, Liam Byrne, Department for Business and Trade, National Audit Office, Government Internal Audit and Assurance function, British Business Banks

Notable line

“NAO has described the Department's efforts as a step change in the accounts preparation as compared to the 2023-24 audit.”

Key Quotes

“NAO has described the Department's efforts as a step change in the accounts preparation as compared to the 2023-24 audit.”
— Tara Smith · Progress on 2024-25 ARA audit quality and timeliness

“The draft opinion for 2024-25 is due to be 'moderate' , with the Head of the Department's internal audit function commending the Department for the speed of the improvement. Key audit risk”
— Tara Smith · Internal audit opinion upgrade from 2023-24

“Working through these matters to achieve a substantively complete audit by the end of July to enable a September laying is challenging, but both the Department and NAO remain committed to a September laying date.”
— Tara Smith · Post Office redress provision modelling risks to publication timeline

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