Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
There are several factors that contribute to maximising the usability of the WGA for the...
Recommendation
There are several factors that contribute to maximising the usability of the WGA for the public and other stakeholders. We discussed with the Treasury how creating successive sets of accounts which are presented in a consistent and comparable way enables users to analyse data and trends across several years. This is one of the most valuable functions of the WGA—which has provided the best available overview of UK public finances for the last 11 years—and so it is important that consistency of data presentation and usability are strictly considered.46
Government Response Summary
The government agrees to ensure that analysis in the WGA supports comparability and reflects developments since the reporting date such as the impact of high inflation. They will build on the existing 5-year trend data and ensure comparative data is presented as effectively as possible, reflecting areas of topical interest and following best practice in presentation.
Government Response
Accepted
HM Government
Accepted
4. PAC conclusion: Inconsistent presentation of data between years, and lack of reflection of current Government policies and economic context, reduce the usability of the Whole of Government Accounts. 4. PAC recommendation: The Treasury should ensure that analysis in the WGA supports comparability and reflects developments since the reporting date such as the impact of high inflation. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: July 2023 4.2 The Treasury is committed to continuous improvement of the WGA performance report, and made several improvements to the WGA performance report in 2019-20, including additional trend data. The WGA performance report includes 5-year trend data for many accounts areas and the department will build on this to ensure comparative data is presented as effectively as possible, to enhance the useability of the accounts. WGA will continue to reflect areas of topical interest, follow best practice in the presentation of data, and include commentary to reflect developments in the public sector and financial landscapes since the reporting date. There is a balance to be struck between change and continuity, so where presentational changes are made the Treasury will provide clear prior year data to aid comparability. 4.3 The impact of inflation will be reflected in the WGA Statement of Revenue and Expenditure in the following years, insofar as it affects in-year expenditure. Projections for future expenditure are included in the performance report, by drawing upon the forecasts of the Office for Budget Responsibility. In terms of the WGA balance sheet, inflation can affect the amount that will need to be paid regarding certain liabilities, as one of a number of factors. As required by accounting standards, the financial statements disclose the sensitivity to certain risks which can include inflation and rates of salaries, depending on the nature of the specific liability. For example, WGA disclosures show the sensitivity of the clinical negligence provision to inflation, and sensitivity of unfunded pension liabilities to changes in salaries.