Source · Select Committees · Public Accounts Committee
Recommendation 28
28
Accepted
New Efficiency Framework lacks specific data requirements to prevent double-counting of savings.
Recommendation
The Cabinet Office also noted that the introduction of the new Framework will mean that there will need to be an agreement between central government and departments about the proportions of savings that are collated to each, which is thought would become “a bit tighter”. It said that it was still keen to track the overall picture of savings across functions, because this was important to benchmarking activity – whereas if thought that if it only tracked savings by department, it would lose “comparability across the piece”. The Treasury hoped that over time it would be able to house the functional efficiency information in the wider government efficiency data available. It explained that the Efficiency Framework would initially start by focusing on cashable savings, as this was “the bit we are most interested in, can deduct off budgets and is the main incentive”, and non-cashable savings would be provided by the functions. But in the “very long-term” it expected that “absolutely everything” to be captured by the Efficiency Framework, and could lead to it not having to do two processes. The Cabinet Office similarly told us that it anticipated that “very quickly, there will only be one efficiency framework” but that on the basis of the NAO’s report, it recognised that there may be methodology reasons where it would want to make additional reporting, for example around fraud. The new Efficiency Framework states that savings should be scored once, net of any double-counting between 40 Cabinet Office, Guidance: The Government Efficiency Framework, 19 July 2023, sections 3.4 and 3.5 41 C&AG’s Report Figure 7; and Comptroller and Auditor General, Efficiency in government, Session 2021–22, HC 303, National Audit Office, July 2021 42 Qq 46, 66 43 Qq 46–47 Cabinet Office functional savings 17 different departments, and that double-counting must be avoided through “clear reporting of data”. But beyond outlining reporting requirements, it does not specify what this data should
Government Response Summary
The government states the recommendation has been implemented with the July 2023 publication of the Government Efficiency Framework (GEF), which sets common standards for defining, collecting, and reporting efficiency savings to avoid double counting, and HMT will iterate reporting requirements.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented In July 2023, HM Treasury (HMT) published the Government Efficiency Framework (GEF). The framework sets common standards for the defining, collecting, and reporting of data on efficiency savings. The GEF reporting is currently being rolled out across government, and HMT will look to learn lessons from the first round of pilot reporting requirements, including the scope of reporting, and will look to iterate these requirements with departments. Efficiencies, as defined within the framework, will be the focus of reporting as opposed to non-efficiency savings. Through the adoption of the GEF, all efficiencies will be required to be reconcilable to departmental budgets and as such will avoid double counting of efficiencies by requiring common and comparable baselines. 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.