Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Departments often struggle to track benefits as closely as they track costs.
Conclusion
Departments often struggle to track benefits as closely as they track costs. The Treasury holds departments to account much more vigorously for their programme expenditure than the benefits they deliver. In turn, departments are often much better at estimating, and tracking, costs than they are at tracking benefits. This can lead to cost shunting, where an apparent cost saving in one area has an unintended negative consequence elsewhere. The timely sharing of data between departments is essential in tracking the effects of efficiency programmes across government. However, the quality and availability of data continues to be an issue. For efficiency programmes to be successful, an effective performance management system needs to be in place. This will allow the reporting of progress against milestones and increase the collection of data relating to both costs and benefits. The Cabinet Office expects that use of the new Outcome Delivery Plans, which mandate the publication by departments of what is expected from programmes, will improve transparency and accountability. However, this has only recently been implemented and is still unproven. Efficiency in government 7 Recommendation: The Cabinet Office and Treasury should work together to ensure that the new system of departmental Outcome Delivery Plans is able to track the costs and benefits of efficiency plans for government as a whole.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented Beyond the regular reporting on whether efficiencies are being achieved, Outcome Delivery Plans (ODPs) also enable government to track progress in delivering real outcomes for citizens, with agreed funding. Departments have been commissioned to produce updated ODPs, covering 2022-2025. To support greater transparency for how public money is spent, departments provide a breakdown of planned spend by priority outcome or business unit through these plans. Reporting on these plans will ensure the government has an ongoing picture of departmental performance for the rest of the Parliament. This will allow Ministers and officials to identify where delivery against priority outcomes may be under pressure, as well as which programmes are not delivering expected results. ODPs are then implemented through individual proposals which are subject to the business case process in line with the Treasury Approvals Process guidance. Major projects are entered on to the Government Major Projects Portfolio and are assured by the Infrastructure and Projects Authority. Treasury spending teams monitor departmental financial information on a monthly basis, and the Chief Secretary to the Treasury will hold departments to account on outcomes as part of routine spending discussions and through the approval of business cases. Through these processes, the government will then be able to take prompt action to improve performance and make better-evidenced decisions on future spending.