Source · Select Committees · Public Accounts Committee
Recommendation 29
29
Acknowledged
Whole of Government Accounts currently list Net Zero spending commitments, not actual audited expenditure data.
Conclusion
We asked the Treasury how it was reflecting the issue of Net Zero spending in the WGA, given its importance across government and therefore every public body that is included in the WGA. At present, the WGA deals primarily with listing spending commitments relating to Net Zero. HM Treasury committed to making this information more prominent as the money begins to be spent and it has data on what has been spent against those commitments.52 We observed that, as with COVID spending, some of this spending will become business as usual, so it will be important to balance this with the ability to track funding. There is also a risk that both the funding and the activity become so entrenched as business as usual that the impact can no longer reliably be tied to the intervention. HM Treasury maintained that for the moment, it was sufficient to know where spending is planned – in the 2021 Spending Review, and in the performance reports of individual components. The NAO noted that the data that HM Treasury plans to collect now will only be published in two to three years, given the accounts’ productions schedule. The public bodies that are incorporated into the WGA and their auditors will need time to produce audited sustainability data.53 Optimal use of WGA data
Government Response Summary
The government acknowledges the importance of reflecting topical issues like Net Zero and states the 2021-22 WGA includes climate disclosures. It commits to continuous improvement and careful consideration of additional disclosures, while maintaining WGA as a record of past performance and part of a broader reporting framework.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2024 5.2 HM Treasury is committed to continuous improvement and will ensure that the WGA continues to reflect areas of topical interest. The 2021-22 WGA includes an update on climate-related financial disclosures and the impact of inflation on key metrics. In the Performance Report, the WGA signposts to other publications by government that can be used as a complement to the WGA. The Greening Government Commitments (GCCs) sets out the actions UK government departments and their agencies will take to reduce their impacts on the environment in the period 2021 to 2025. This includes commitments for departments to develop and deliver climate change adaption strategies. 5.3 HM Treasury will remain mindful that the WGA financial statements are a record of past financial performance and are based on the financial data collated from WGA returns. Data is not collated for the WGA performance report, though we include useful information on key strategic themes from published sources where appropriate. HM Treasury carefully consider adding additional disclosures to WGA where useful to the reader, while also being mindful that adding too many disclosures might make reporting complex and unwieldy. 5.4 The WGA should be seen as a component of a range of government reporting frameworks and is part of a broader framework of financial reporting and management. Each department has its own aims and objectives and so the reporting frameworks are flexible by design to give those preparing reports the autonomy and independence to present their unique objectives.