Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Accepted
GIAA audit scope does not cover wider adverse effects of efficiency savings.
Recommendation
The NAO found that while the Government Internal Audit Agency (GIAA) looked at the processes the functions used to calculate and assure the savings claimed, it did not consider whether the efficiency savings created adverse effects on other parts of government. The scope of the GIAA’s audit did not include assurance over whether savings affect resilience planning, service user experience, or add costs to other parts of government. In addition, the NAO found that the Cabinet Office did not ask functions to assess whether their savings might add costs in other areas, because it considered that this was not always possible or proportionate.36
Government Response Summary
The government agrees and commits to providing an update to the Committee by end December 2024 on assurances received from functions and departments that cost shunting and double counting have not led to costs elsewhere, further noting the GEF provides additional checks against these issues.
Government Response
Accepted
HM Government
Accepted
5.4 The government agrees with the Committee’s recommendation. Target implementation date: by end December 2024 5.5 Cabinet Office and HMT will provide an update to the Committee on assurances received from functions and departments that cost shunting and double counting have not led to costs elsewhere. 5.6 The Committee should be aware that the implementation of the GEF provides additional checks and balances against cost shunting and double counting. 5.7 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. 5.8 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.