Recommendation 5

Relying on shared corporate services such as HR, estates and finance is not always the best option for small bodies. Shared corporate services, such as estates and IT, have the potential to deliver efficiencies and free up resources in small bodies to focus on frontline delivery. Under the government’s shared services strategy, organisations across the civil service are expected to migrate to shared service centres that will provide HR, payroll and other back-office functions. Small arm’s-length bodies fall within the scope of this strategy. There is the opportunity to build compliance with government requirements into the way shared services are provided. However, the shared services model does not always suit small organisations. In some cases, they can deliver back-office functions more efficiently through small, agile in-house teams. 4 recommendation The Cabinet Office should explain how it intends to engage with small central government bodies to ensure that they are only onboarded to shared corporate services if this is beneficial to them as well as to government as a whole. If they choose not to adopt the shared service model, they must clearly justify this decision. recommendation The Cabinet Office should update its guidance on commissioning and establishing new public bodies to require departments to assess what level of reporting and governance is proportionate for the proposed body. Where a more streamlined approach is appropriate, departments should set out in the business case: • how the body will draw on sponsor department expertise and support; • whether a low-risk financial reporting regime is suitable; and • when the body will determine its shared services model. 5 1 Consolidating small bodies