Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Deferred
Departments and regulators face ongoing challenges in securing high-demand commercial and financial skills.
Recommendation
Nonetheless, the Treasury reiterated that it is up to departments and regulators to ensure they have the capability and capacity to discharge their duties, including understanding what financial expertise they need.66 The Department for Business and Trade explained how the kinds of skills it requires, including commercial, financial and accounting skills, are high in demand across the private sector and government. We heard how regulators face the same challenges in competing for these skills.67 The Department for Business and Trade told us that things had improved in getting people with the commercial negotiation and financial experience to be able to talk to companies, but did not specify whether this is the same experience across departments.68 Evaluation and learning
Government Response Summary
The government agrees with the recommendation regarding skills and capabilities across government, setting an April 2025 target. It refers to existing guidance and risk management frameworks, and commits to the Cabinet Office Commercial Function working with other bodies to look at developing a more targeted approach for skills development.
Government Response
Deferred
HM Government
Deferred
5.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2025 5.2 The Government Commercial Functional Standard refers to ‘Sourcing Playbook’ guidance regarding the monitoring of the supplier financial standing and identifying and responding to financial distress. This, together with the work by the Government Finance Function on developing the Risk Management Strategy to strengthen leadership and enhance credibility, collaborate across boundaries and enhance capabilities and drive professionalism precludes the need for setting new functional standards. 5.3 The Government Commercial Function Learning and Development Programmes have a risk-based approach running through all commercial training programmes as well as dedicated sessions with this focus. Both training and guidance documents signpost departments to sources of further support, including sourcing of expertise such as UKGI as outlined in response to recommendation 4, and the Cabinet Office proactively engages with departments to identify gaps in capability with the commercial standards process benchmarking department performance. 5.4 The Government Risk Profession was formally established in 2022. The core principles of the profession’s Risk Management Strategy include the need for risk management planning to be central to government planning, policy making, service delivery, monitoring, and reporting activities and that risks are best managed closest to source with professionals and skills embedded in departments at different levels. 5.5 The Cabinet Office Commercial Function will work with the Risk Centre of Excellence in the Government Finance Function, UKGI and HM Treasury’s Special Situations Team to look at a more targeted approach to develop the skills required across government for monitoring and responding to companies or suppliers in distress.