Source · Select Committees · Public Accounts Committee
Recommendation 12
12
The Treasury told us that it is trying to prevent poor data leading to optimism...
Conclusion
The Treasury told us that it is trying to prevent poor data leading to optimism bias by improving the raw financial data that government captures. It gave the new Online System for Central Reporting and Accounting (OSCAR 2) as an example of how government is capturing new and important datasets. The Treasury described how it is working with the government functions to collect benchmarking data, which can be used to sense check information. The Treasury noted how it would like to see more improvements to benchmarking data and more analytical insight driven by the functions to help make improvements in government.29 When we asked the Treasury whether departments should start programmes if they knew the data was not good enough, it told us that departments can use predictions based on historic data, which can be refined using small test-and- learn pilots, and then scaled-up if the new data proves the initial assumptions.30
Government Response
Not Addressed
HM Government
Not Addressed
3. PAC conclusion: Previous efficiency programmes have over-promised and under- delivered. 3: PAC recommendation: HM Treasury need to ensure plans are subject to adequate challenge, testing the realism of departments’ expected savings, and considering the use of pilots where appropriate. 3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 HM Treasury recognises the need to underpin the planned efficiencies and savings agreed through SR21 with departmental plans for delivery. SR21 confirmed savings of 5% against day-to-day central departmental budgets in 2024-25 from the Efficiency and Savings exercise ahead of Spending Review 21. The Chief Secretary to the Treasury led a process of engagement in summer 2021 to test departmental savings and efficiency proposals to test for deliverability. This process also involved the Government Functions reviewing relevant efficiency proposals to ensure they were realistic and deliverable. 3.3 HM Treasury tests, and reviews business cases and departmental benefits realisation plans in practice through the spending control process led by HM Treasury spending teams. Spending teams use gated approvals such as Major Project Review Groups (MPRG) or Treasury Approval Panels (TAPs) to review departmental projects or programmes to test whether they are suitably designed to deliver the desired outcomes. HM Treasury also works closely with the Cabinet Office to undertake performance stocktakes, jointly reviewing policy and financial performance. Spending teams’ scrutiny is supported by enhanced financial reporting and management information (such as Finance Board Packs) developed by the Government Finance Function and delivered by departmental finance teams. 3.4 HM Treasury and Cabinet Office are also working with departments to develop Outcome Delivery Plans (ODPs) covering 2022-25, that will set out how each UK government department will use its resources to work towards the delivery of the priority outcome agreed at SR21. ODPs will test the deliverability of all of the government’s spending plans, including plans for efficiency and savings. They will be published after the start of the next financial year on gov.uk. 3.5 HM Treasury plans to collaborate with Government Functions to share best practices across the Civil Service. The Government Functions will be encouraged to share departmental best practices to generate further opportunities for efficiencies across government based on these successful pilots in departments.