Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Acknowledged
Committee took evidence on improving government productivity via better service cost information.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, HM Treasury and the Department for Science, Innovation and Technology on improving government’s productivity through better information on the costs of services.1
Government Response Summary
The government acknowledges the committee's work and outlines plans to enhance government productivity by setting expectations for Accounting Officers to improve service-level cost information, issuing new guidance, monitoring compliance via finance assessments, and fostering best practices through cross-government forums.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the Committee’s recommendation. expectations for Accounting Officers and senior leaders to identify, use and continuously improve service‑level cost information, focusing on understanding cost drivers and productivity opportunities. For efficiency, this letter will be issued in tandem with the forthcoming fees and charges Dear Accounting Officer letter, reflecting the close link between understanding the cost base and setting fair, transparent fees and charges. Both letters will reinforce requirements under Managing Public Money and the government’s Value for Money guidance. Compliance will be monitored through end‑year finance assessments coordinated by the Government Finance Function, drawing on departmental evidence of service‑level costing, benchmarking and benefits realisation. Findings will inform Permanent Secretary objectives and functional performance discussions. Treasury will use cross‑government forums (including the Finance Foundations Group) to share best practice, address barriers, and support departments to embed cost ownership in service governance, aligned to the Government Finance Function Strategy. Where systemic issues are identified (for example, legacy systems or fragmented service ownership), the Treasury will work with departments to agree remediation plans and timelines, with progress reviewed through existing business planning and stocktake processes.