Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Accepted
Government bodies require practical examples and clearer guidance for managing fee-setting challenges.
Recommendation
The NAO highlighted that government bodies would like practical examples of how to address common operational problems, such as forecasting user demand, or when and how to reflect inflationary pressures, so they can consider options on how best to handle them.11 The Treasury recognises that charging bodies face issues and need to make trade-offs, and stated that it is important Treasury shares best practice on how to manage these from its perspective.12 The Treasury told us it has since strengthened its guidance in Chapter six of MPM, and will provide more clarity about what should be considered when looking at setting fees. The Treasury believes these 5 C&AG’s Report, para 1.4, 2 6 C&AG’s Report, para 3 7 C&AG’s Report, para 2.25 8 Qq 29, 46 9 Q 28 10 Qq 6, 26 11 C&AG’s Report, para 3.3 12 Q 48 8 improvements will also allow its spending teams to guide departments though the process with clarity on the guidance and to provide constructive challenge and timely change.13
Government Response Summary
HM Treasury will create a cross departmental working group to set out a comprehensive time-bound plan to support fee-charging public bodies, to be shared with the Committee, which will discuss issuing operational guidance and establishing a mechanism to share good practice.
Government Response
Accepted
HM Government
Accepted
1. PAC conclusion: The Treasury is not doing enough to actively support government bodies in managing their fees and charges effectively, resulting in inconsistent and poor practices across departments. 2 1. PAC recommendation: Alongside its Treasury minute response to this report, the Treasury should write to the Committee setting out a comprehensive time-bound plan on how it will be more systematic in supporting fee-charging public bodies. This should include issuing operational guidance on areas such as setting fees and making trade-offs; and establishing a mechanism to share good practice to support the improved financial management of fees and charges across government. 1.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2026 1.2 HM Treasury will create a cross departmental working group to set out a comprehensive time-bound plan to be more systematic in supporting fee-charging public bodies, which will be shared with the Committee. As part of its remit, and as set out in the Committee’s recommendation, the working group will discuss issuing operational guidance to government bodies and establish a mechanism to share good practice.