Source · Select Committees · Public Accounts Committee
58th Report - Government services: Identifying costs
Public Accounts Committee
HC 1421
Published 12 December 2025
Conclusions (5)
1
Conclusion
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, HM Treasury and the Department for Science, Innovation and Technology on improving government’s productivity through better information on the costs of services.1
Government Response Summary
The government acknowledges the committee's work and outlines plans to enhance government productivity by setting expectations for Accounting Officers to improve service-level cost information, issuing new guidance, monitoring compliance via finance assessments, and fostering best practices through cross-government forums.
10
Conclusion
Acknowledged
We found that there is limited practical guidance and systematic support for people in departments who own the services and are responsible for identifying their costs.20 Forums such as the Finance Foundations Group aim to share best practice.21 While we heard a good description of the theory of sharing best …
Government Response Summary
Treasury will use cross‑government forums (including the Finance Foundations Group) to share best practice, address barriers, and support departments to embed cost ownership in service governance, aligned to the Government Finance Function Strategy.
11
Conclusion
Acknowledged
We were pleased to hear that the Government Finance Function (GFF) recognises the need for a significant shift.23 It told us that it has conducted an internal skills assessment and will recruit additional experts to help 13 Qq 147, 148 14 Qq 123, 146 15 Q 140 16 Q 85 …
Government Response Summary
Capability will be strengthened through the Government Finance Academy and peer support via the Finance Foundations Group, with departments piloting the standard and sharing lessons learned.
14
Conclusion
Acknowledged
“Quick wins” can be valuable. However, we are concerned that they often mask deeper and more persistent issues like poor data quality and entrenched cultural barriers. As the Cabinet Office has itself identified, these will need ongoing tenacity and effort if substantial progress is to be made in addressing them.34 …
Government Response Summary
The government agrees with the Committee’s recommendation. They will implement practical costing guidance by July 2026, which will sit alongside Managing Public Money and Value for Money.
15
Conclusion
Acknowledged
The lack of common data standards across government further complicates benchmarking and granular cost analysis because it makes data more difficult to analyse and interpret.35 GFF told us that the introduction of new Enterprise Resource Planning systems and new data standards for back-office processes such as finance and human resources …
Government Response Summary
The government states that consistency will be supported by the NOVA reference model, rollout of common ERP solutions, and a common chart of accounts.