Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted
HM Treasury approved £300 million funding for shared services, despite earlier bid rejections.
Conclusion
Although HM Treasury rejected cluster bids for funding, it approved a funding envelope of £300 million to cover the period up to 2024–25. This was to support these clusters to deliver the strategy and to address the risk that departments could be left with unstable and unsupported systems in the interim.21 The Cabinet Office told us that it considered these bids were ambitious, both in terms of the amount of central funding that could be allocated and the length of time it would take to go through the process. Access to this funding was contingent on the approval of cluster business cases by the Cabinet Office and HM Treasury, which clusters obtained in autumn 2022.22 12 Committee of Public Accounts, Shared service centres, Twentieth Report of Session 2016–17, HC 297, October 2016 13 C&AG’s Report, para 2.5 14 Committee of Public Accounts, Shared service centres, Twentieth Report of Session 2016–17, HC 297, October 2016 15 Q 60 16 C&AG’s Report, para 15 17 Q 62; C&AG’s Report, para 3.4 18 C&AG’s Report, para 3.4 19 Q 60 20 Qq 60–61 21 Q 62; C&AG’s Report, para 19 22 Q 62; C&AG’s Report, para 3.5 Government Shared Services 11
Government Response Summary
The government agrees and is actively communicating with HM Treasury to ensure funding for the 2024 Spending Review (SR24), with a target implementation date of November 2023. Initial funding of £126.58 million has been granted to clusters, and ongoing work on Final Business Cases and a benefits framework will inform future SR24 bids.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: November 2023 Communication is constant with HM Treasury in regard to how funding can be ensured in the 2024 Spending Review (SR24). There is knowledge and experience within the funding space. Previously, for SR21 an extensive bidding process was completed with three clusters (Synergy, Matrix and Unity) which resulted in the programme being granted £300 million in reserve funding. Work then began on initial business cases which resulted in approval and each cluster being granted initial funding of £126.58 million which will allow the clusters to proceed through the final business case (FBC) stage. Vitally, FBC’s will contain Strategy whole life costs; this will be beneficial in formulating SR24 bids. Additionally, ongoing work on a benefits framework will enable us to qualify the full value for money that the Strategy will deliver which will assist in formulating SR24 bids.