House of Commons · Written Ministerial Statement
Reporting contingent liabilities in relation to a Government guarantee backing a previously approved £4 million borrowing facility and a new partially guaranteed borrowing facility of up to an additional £26 million for Historic Royal Palaces.
02 June 2020 · Department for Digital, Culture, Media and Sport
Proposed by Nigel Huddleston Con Droitwich and Evesham
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The government has activated an 80 percent guarantee for a new borrowing facility of up to 26 million for Historic Royal Palaces due to financial pressures from the COVID-19 pandemic.
- An existing 4 million borrowing facility with a government guarantee has been called upon as Historic Royal Palaces faces severe cash flow issues.
- This support aims to address the urgent financial needs of Historic Royal Palaces resulting from the impacts of the pandemic.
Issue summary
The statement addresses the activation of a government guarantee for Historic Royal Palaces (HRP) and the creation of a new partially guaranteed borrowing facility due to financial impacts from COVID-19.
Action requested
The government is providing an additional £26 million borrowing facility with an 80% guarantee, activated immediately due to urgent need. The existing £4 million guarantee has been called upon as HRP faces severe cash flow issues from the pandemic.
Key facts
- Historic Royal Palaces' previously approved £4 million overdraft facility activated due to COVID-19.
- A new borrowing facility of up to £26 million with an 80% government guarantee has been established for HRP.
- The new facility will allow HRP's reserves to mature and invest in the business over a period of two years.
- Due to urgency, £4 million was immediately drawn from the additional £26 million facility on 20 March 2020.
- Historic Royal Palaces is a charity established by Royal Charter managing unoccupied royal palaces since April 1998.