Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
Departments inconsistently apply Green Book guidance on evaluation plans in spending proposals.
Recommendation
HM Treasury’s Green Book guidance on business case appraisal makes clear that plans for monitoring and evaluation should be proportionately included in each spending proposal that is submitted.44 Departments approaches vary in how much they choose to take these plans into account as part of their approval decision.45 DLUHC updated its business case template to include a requirement to provide details of any ring-fenced costs for impact evaluation of all investments of more than £100 million, and for smaller investments which are innovative, contentious or untested.46 Reporting on cross-cutting outcomes
Government Response Summary
The government accepts the recommendation, stating it has already implemented steps such as updating Consolidated Budgeting Guidance in 2022 and working with departments on outcomes. HM Treasury is also updating guidance on the Treasury Approvals Process, due in April 2024, to set expectations for cross-government working.
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.