Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
Improve cross-government working by only approving business cases with clear links to cross-cutting aims.
Conclusion
HM Treasury has taken initial steps to evaluate what works but now needs to fully embed this to improve cross-government working. In 2021, the Government set up a joint Evaluation Task Force to support evaluation of policies and programmes across government. HM Treasury made greater use of its powers, requiring departments to include plans for evaluations for it to approve funding at the 2020 Spending Review. More recently, the Task Force has set up an evaluation registry which shows what government has already done in a policy area and what others are planning so that examples of good practice can be better shared. Review of this will become mandatory prior to business case approval from next year. All business cases should include plans for monitoring and evaluation. However, departmental approvals processes vary in terms how much they take these plans into account as part of their approval decision. Recommendation 4: HM Treasury should use its influence to improve cross- government working, for example by only approving business cases that clearly demonstrate a link to the relevant cross-cutting aim they support, appropriate plans for evaluation, and detail on what cross-government outcomes and outputs should be delivered.
Government Response Summary
The government states it has already updated Consolidated Budgeting Guidance and uses Green Book requirements. HM Treasury is also updating guidance on the Treasury Approvals Process to set out expectations for cross-government working for projects, due to be published in April 2024.
Government Response
Accepted
HM Government
Accepted
The government agrees with the committee’s recommendation. Recommendation implemented HM Treasury agrees that it should use its influence to improve cross-government working. It has taken a number of steps to do this. HM Treasury has worked with other government departments to agree the medium- term policy outcomes that will be achieved through public spending. This includes shared or cross-cutting goals in areas where the best results are achieved by close working between two or more departments. It is important that departments consider how their spending proposals support these strategic policy goals. In 2022, HM Treasury updated the Consolidated Budgeting Guidance with requirements on departments to explain and evidence the impact of policy proposals on these medium-term policy goals. HM Treasury spending teams are required to follow the Green Book when reviewing a business case or a cross-government business case. This involves ensuring that proposals explain the strategic fit of a proposal with wider public policy and other proposals to which it is directly related. The Green Book also makes clear that business cases should include plans and the budget for monitoring and evaluation of the associated project or programme, so government can better understand whether interventions are achieving the desired impact. If a business case that purports to support a cross-cutting aim does not, upon scrutiny, evidence strong links to that aim, HM Treasury should not ordinarily provide spending approval. HM Treasury and IPA have provided tools and support to departments to meet these requirements. IPA has launched a Project & Outcome Profile tool that supports departments to consider the contribution of a specific project or programme to wider policy outcomes. HM Treasury has also worked closely with departments to develop a ‘theory of change’ for each of their priority outcomes through the Outcome Delivery Plan (ODP) process. HM Treasury is in the process of updating guidance on the Treasury Approvals Process to set out the expectations around cross-government working for projects that are either delivered by multiple governmental organisations or have material impacts on multiple governmental organisations. This guidance is due to be published in April 2024.