Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Most government major projects lack robust evaluation plans, limiting evidence of effectiveness.
Recommendation
In 2021, the Government set up a joint Evaluation Task Force to support evaluation of policies and programmes across government.36 The Head of the Evaluation Task Force told us that only 8% of all government major projects and plans have a robust evaluation plan in place and as a result there is still limited evidence about what works. HM Treasury claimed it has assessed approximately 300 evaluation plans covering around £140 billion of 30 C&AG’s Report, para 19 31 C&AG’s Report, paras 19, 3.4 32 Q 67; C&AG’s Report, para 3.4 33 C&AG’s Report, para 19 34 Q 81 35 Qq 67, 68 36 C&AG’s Report, paras 16 and 3.8 Cross-government working 11 spend.37 It told us how it made greater use of its powers, requiring departments to include plans for evaluations as part of the 2020 Spending Review. However, it recognises that more needs to be done to see fundamental change and successfully embed the importance of robust evaluation across government.38 The Head of the Evaluation Task Force told us that plans are in place to “keep pushing” by developing more toolkits, and making things “more practical” by continuing to demonstrate what departments have already done.39
Government Response Summary
The government accepts the recommendation, stating it has already implemented measures like updating Consolidated Budgeting Guidance in 2022 and enforcing Green Book requirements. It also commits to publishing updated guidance on the Treasury Approvals Process in April 2024, while the Evaluation Task Force will continue to support departmental analysts.
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. The Evaluation Task Force will continue supporting departmental analysts with identifying project-specific evaluation data, particularly for projects within the Task Force’s priority areas, which are listed on its website. The Magenta Book sets the standard for evaluation and has a range of support available for the whole of government. The Task Force does not routinely identify data for every cross-government project, which is not practicable within existing resources given the countless examples of cross-government work taking place at any given time. Departments are ultimately responsible for evaluating their own programmes, including those that are delivered jointly with other departments, and are best placed to understand the data requirements to do this, working with relevant departments.