Source · Select Committees · Public Accounts Committee
Recommendation 6
6
Not Addressed
Accountability for departmental cost information is jointly held but not systematically enforced.
Conclusion
Responsibility for holding departments to account for improving their cost information is joint between the Cabinet Office and HM Treasury. The Cabinet Office sets the overall performance management framework expectations, including financial minimum standards.6 However, it does not systematically enforce compliance, relying instead on departments and internal auditors. HM Treasury’s role is to make sure departments and accounting officers have the guidance they require and, through the Government Finance Function, arrange and conduct end of year performance reviews.7
Government Response Summary
The government repeats the response from ID 2039, which does not address the specific observation of the committee.
Government Response
Not Addressed
HM Government
Not Addressed
1.1 The government agrees with the Committee’s recommendation. Target implementation date: July 2026 1.2 The Treasury will issue an updated Dear Accounting Officer letter that explicitly sets 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. 1.3 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. 1.4 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. 1.5 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. 1.6 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.