Source · Select Committees · Public Accounts Committee
Recommendation 9
9
The Department introduced a monthly survey in April 2020 to collect data on the financial...
Conclusion
The Department introduced a monthly survey in April 2020 to collect data on the financial pressures faced by local authorities due to the pandemic. Prior to the pandemic, the majority of its regular financial data sets tended to be collected on an annual basis. The Department told us that the switch to a monthly approach did not necessarily mean there was a problem with the data it collected before, but reflected the unprecedented nature of the challenge faced by the sector. The Department told us that the survey had given it “huge insight” into local authorities’ finances on a more immediate and responsive basis than it would normally have. The survey data was also a valuable source of information for other departments.18 In terms of learning from this experience, the Department recognised that there was a benefit to having more information on the sector over the longer-term, 13 Housing, Communities and Local Government Committee, Oral evidence: Work of the Department, HC 302, Monday 4 May 2020; Letter to the Secretary of State from the Chair of the Housing, Communities and Local Government Committee requesting further information following his appearance on 4 May, 14 May 2020; Committee of Public Accounts, Oral evidence: Local authority commercial investment, Friday 15 May 2020; Committee of Public Accounts, Oral evidence: Whole of Government Response to COVID-19, HC 404, 15 June 2020; Committee of Public Accounts, Oral evidence: Readying the NHS and social care for the COVID-19 peak, HC 405, 22 June 2020; Committee of Public Accounts, Oral evidence: Progress in Remediating Dangerous Cladding, HC 406, 6 July 2020; Housing, Communities and Local Government Committee, Oral evidence: Work of the Department, HC 302, 22 July 2020 14 Qq 84–85 15 Q85, 87, 94; C&AG’s Report, paras 2.35–2.36, 4.3 and Figure 7 16 Qq 90, 93–94; C&AG’s Report, para 2.24, 2.31 and Figure 7 17 Qq 87, 90, 94, 120, 123, 135, 139–140, 161; C&AG’s Report, Figure 10 18 Qq 100, 103 and 105; C&AG’s re
Government Response
Acknowledged
HM Government
Acknowledged
2a: PAC recommendation: The Department should draw on the experience of collecting data during the COVID-19 pandemic to improve its regular collections of local government financial data. In particular, it should write to us by October 2021, setting out: i) what, if any, changes it plans to make to its regular collections based on its experience of data collection and use in the pandemic; 2.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 2.2 The department agrees that the Local authority COVID-19 financial impact monthly monitoring collection has been a valuable source of information. The collection was developed at pace in Spring 2020, and has evolved continuously, benefitting from extremely high response rates and engagement. To date, 12 rounds of information have been published. The process has been informed by close sector collaboration, and the data are collected on a voluntary basis, in recognition of the pressures local authorities are facing. 2.3 The monthly monitoring returns have been a valuable source of evidence, providing near-real time data at a time of significant volatility. These figures are, however, based on self- reported ‘best estimates’, and are management information rather than official certified returns and should therefore be treated with appropriate caution. This contrasts with regular data collection where timeliness is less important and greater accuracy and assurance desired. 2.4 The department has recently launched a review of pre-existing local government finance data collections, and the review's first steering group met on 15 June 2021. The review will consider issues around local authority expenditure and borrowing data, consult stakeholders to identify which data needs are currently being met, and prioritise changes to consider. In addition, the review will set out recommendations for a sustainable process for identifying and implementing changes. The department will consider the future of the monitoring collection as part of this review. 2.5 The department will write to the Committee in October 2021 to provide an update on the review and how it is taking forwards the lessons learned.