Source · Select Committees · Public Accounts Committee
Recommendation 2
2
The value of the cost tracker is lessened by poor data from some government departments...
Conclusion
The value of the cost tracker is lessened by poor data from some government departments and functions. The level of completeness and accuracy of COVID- related data is variable across government departments. Several departments are still not able to provide a robust assessment of their COVID-related activity, or the extent to which other activity has been cancelled or displaced. While HM Treasury is working with government finance functions to improve definitions and recognition of COVID-19 related expenditure in the accounts, these systems have only been put in place recently and more needs to be done to embed them. Existing systems are still not adequate to provide timely and accurate data. There also remain areas of spending where it is not possible to distinguish between COVID-driven or non-COVID-driven expenditure, for example, spending in the NHS, and Universal Credit (DWP). Recommendation: To support the next iteration of the cost tracker, and in advance of the autumn Spending Review, HM Treasury should continue working with departments to develop robust methodologies for identifying and capturing the full cost of COVID-19, including economic impacts and the extent of displaced activity, to have a clear basis for future fiscal decisions and recovery plans.
Government Response
Acknowledged
HM Government
Acknowledged
2.1 The government agrees with the Committee’s recommendation Recommendation implemented 2.2 HM Treasury has continued to work closely with departments to develop robust methodologies for identifying and capturing the cost of COVID-19 in support of the latest publication of the cost tracker. The quality of the data has improved in the September 2021 update following this continued collaboration. 2.3 The government set out its spending plans and choices up to 2024-25 in the Autumn Budget and Spending Review 2021 document. This included a comprehensive recovery plan. As part of the Spending Review 2021 process, departments provided HM Treasury with information on costings of interventions to support the response to, and recovery from, the COVID-19 pandemic, including an assessment of the strategic, economic, commercial, financial and management cases for investment through supporting business cases. This process prioritised building back better from COVID-19 by investing in public services, jobs and growth, and the transition to Net Zero. This included providing funding for services most affected by COVID-19 – such as the health and education systems – to continue to respond to the impacts of the virus.