Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Acknowledged
Incorporate best practice and guidance into efficiency exercise, reporting on double-counting assurance
Conclusion
Cabinet Office and HM Treasury have not finalised how they will manage the risks of double-counting and cost-shunting. Avoiding adverse effects is a key element of good practice in making and reporting efficiency savings. HM Treasury and the Cabinet Office expect there will be natural convergence between the separate efficiency reporting exercises for departments and functions. HM Treasury expects that ultimately functional efficiency information will become part of the wider government efficiency data set. But it recognises that its new Efficiency Framework could increase the risk that savings are counted by both central teams and departmental teams, as departments will be more rigorous in reporting efficiencies. It is essential that savings are not double counted, costs are netted, and that costs are Cabinet Office functional savings 7 not shunted from one area of government to another. Reporting functional savings and wider efficiency savings in parallel increases the risk of duplication in terms of savings claimed and bureaucratic effort. Recommendation 5a: HM Treasury and the Cabinet Office should incorporate into the 2023–24 efficiencies exercise: • Examples of best practice on calculating, recording and reporting of savings with departments and functions; • Clearer guidance on how to avoid cost-shunting and double-counting, as well as any other adverse effects; b) By the end of 2024, the Cabinet Office and HM Treasury should report back to the Committee on what assurance they have received from departments that the savings claimed have not led to costs elsewhere in government. 8 Cabinet Office functional savings 1 Achieving efficiency savings
Government Response Summary
The government agrees with the recommendation and states that the implementation of the Government Efficiency Framework (GEF) provides additional checks and balances against cost-shunting and double-counting. However, it does not explicitly commit to reporting back on received assurance from departments by the end of 2024.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the Committee’s recommendation. received from functions and departments that cost shunting and double counting have not led to costs elsewhere. The Committee should be aware that the implementation of the GEF provides additional checks and balances against cost shunting and double counting. The GEF takes a systematic approach to efficiency, stating that an efficiency saving should not push costs elsewhere in the public sector and should not have adverse impacts to outputs and outcomes. The GEF also standardises the holding and reporting of efficiency data, including for joint efficiencies, which further strengthens scrutiny not just within departments but also across departments so that cost shunting and double counting does not occur.