Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Rejected
We discussed with the Treasury that one way in which headcount reductions might be accomplished...
Conclusion
We discussed with the Treasury that one way in which headcount reductions might be accomplished whilst at the same time maintaining the scope and standard of service delivery, is by way of increased digitisation. By digitalising services, the required level of staffing is reduced, and cuts can be made in areas where resources are no longer needed. The Treasury acknowledged the risk that if a rapid reduction in headcount resulted in the loss of the skills and capacity needed to achieve transformation, current progress towards digitalisation might be lost. The Treasury told us that it is eager to understand the 70 Prime Minister’s Housing Speech, 9 June 2022 71 Q 21 72 HM Treasury, Autumn Budget and Spending Review 2021, 27 October 2021, para 8, p 2 73 Q 21 74 Q 23 75 Q 44 76 Q 23 18 Whole of Government Accounts 2019–20 consequences of these cuts on delivering transformation and vital public services.77 The Treasury affirmed its responsibility, together with the Cabinet Office, to ensure that it is incentivising, prioritising and enabling digital transformation.78 77 Q 24 78 Q 44 Whole of Government Accounts 2019–20 19
Government Response Summary
The government disagrees with the committee's recommendation. The Prime Minister has confirmed that, rather than a top-down headcount reduction target, departments should look for the most effective ways to secure value and maximise efficiency within budgets. They will not be publishing a full plan to deliver the previously proposed Civil Service staffing reductions.
Government Response
Rejected
HM Government
Rejected
6.1 The government disagrees with the Committee’s recommendation. 6.2 The Prime Minister has confirmed that, rather than a top-down headcount reduction target, department should look for the most effective ways to secure value and maximise efficiency within budgets, to ensure the best value for taxpayers both now and in the long term. As a result, the government has not set top-down targets for Civil Service headcount reductions through the Efficiency and Savings Review launched in the Autumn Statement and will not be publishing a full plan to deliver the previously proposed Civil Service staffing reductions. 6.3 At Spending Review 2021, departments already identified 5% RDEL savings against day-to-day central departmental budgets in 2024-25, and HM Treasury is monitoring the delivery of these. The focus of the forthcoming Efficiency and Savings Review will be to task every government department to look for the most effective ways to secure value and maximise efficiency within budgets to use taxpayers’ money sustainably in the long-term including, where appropriate, headcount reductions. Departments will develop plans with specific efficiency savings to ensure they can live within the budgets set at the last spending review including any plans for headcount reductions, which they will own and deliver. The outcome of the Efficiency and Savings Review will be reported next spring and monitored by HM Treasury for the remainder of the SR period. The Chancellor and Chief Secretary to the Treasury will oversee the delivery of these efficiency savings and are also holding regular meetings with Ministers to drive efficiency. 6.4 At the same time, the civil service needs to ensure it has the skills, tools and resources to be a modern civil service that reflects the people it serves, and provides value for money to the taxpayer. Government functions will work with departments to ensure overall workforce plans, including any appropriate reductions, deliver a skilled and increasingly profesionalised workforce to enable effective delivery in line with the government’s longer term strategy for Civil Service reform.