Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Accepted
HMRC lacks independent evaluation trigger and transparency for evaluation spending
Conclusion
When we questioned HMRC on what would trigger it to evaluate the scheme, it told us that it would need ministers to request it. We queried the extent to which looking at the impact of a scheme is a political policy decision, as opposed to a decision for officials, and expressed concern at how little evaluation is done across government. HMRC noted that its involvement in initiating evaluations is centred on its role advising ministers on the tax system, including areas it believes require further analysis.40 It cannot identify how much it typically spends on evaluation as it does not track these costs separately from general policy and programme delivery costs. It spent £5.9 million on external research in 2022–23, of which it estimates around one-third was on evaluation. In comparison, its operational (DEL) spending limit for the same year was £7.1 billion.41 37 Qq 87–88 38 Qq 55, 82, 94 39 Qq 56–57 40 Qq 86–88 41 Correspondence from HMRC to PAC dated 7 June 2023; HM Treasury, Central Government Supply Estimates 2022–23: Main Supply Estimates, HC 396, June 2022, page 356 16 Child Trust Funds
Government Response Summary
The government agrees with the committee’s concern, committing to formalising a detailed evaluation plan for Winter 2023 and publishing its external research programmes by Summer 2025. They acknowledge the need for careful and proportionate evaluation, especially for discontinued schemes like CTF.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target Implementation date: Summer 2025 6.2 HMRC is committed to evaluation. The evaluation framework was published in 2021 and sets out HMRC’s approach to achieving good quality monitoring and evaluations of its policies in line with government good practice. HMRC has committed to publishing its external research programmes in the HMRC annual report and accounts and has made the same commitment for evaluation. A list and brief description of HMRC’s research reports, and the final research report, is available on GOV.UK. HMRC also publishes a list of HMRC planned evaluation publications. 6.3 Any evaluation plan, however, needs to be carefully considered and proportionate recognizing that resources are limited. The CTF is an intervention that has been discontinued and is not currently part of the policy framework. While there are undoubtedly some lessons that can be learned, any evaluation plan will need to be mindful of this wider context. A more detailed plan for evaluation will be formalised in Winter 2023. 6.4 In addition, evaluation and similar analysis are not solely the purview of Government. HMRC also seeks to be open and pro-active in the way it manages its relationships with external stakeholders such as academics and external researchers, including those researching CTFs, and permits access to HMRC data via the HMRC Datalab.