Source · Select Committees · Public Accounts Committee
57th Report - Government services: Generating income
Public Accounts Committee
HC 890
Published 10 December 2025
Recommendations
4
Accepted in Part
Establish standardised reporting requirements for fee-charging public bodies to enable effective public and parliamentary scrutiny.
Recommendation
Charging bodies do not publish adequate or consistent information on their fees and charges to allow for effective public scrutiny and accountability. The Treasury sets out in both Managing Public Money (MPM) and the Financial Reporting Manual (FReM) the information …
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Government Response Summary
The government disagrees with the specific recommendation for standardised reporting but commits to updating the Financial Reporting Manual (FReM) by Spring 2026 with clearer reporting guidance for fee-charging public bodies. They will also consider if further reporting requirements are necessary.
HM Treasury
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9
Accepted in Part
Most charged services missed cost-recovery targets, resulting in significant financial shortfalls.
Recommendation
The NAO reported that of the seven services examined, six aimed to achieve 100% cost-recovery, but these six averaged only 88% recovery in 2023-24, leading to a shortfall of £340 million.16 The Treasury acknowledged that it has perhaps been too …
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Government Response Summary
The government disagrees with the specific recommendation. However, the Treasury will update the Financial Reporting Manual (FReM) to align to 6.11 of Managing Public Money (MPM) to include clearer reporting guidance for fee-charging public bodies and will embed oversight through the Spending Review (SR) returns to ensure departments consider the appropriate subsidies and fees which will now occur every two years.
HM Treasury
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18
Accepted in Part
Inconsistencies between MPM and FReM create ambiguity in fee disclosure requirements for departments.
Recommendation
The Treasury requires departments to disclose information on their fees and charges in their annual reports and accounts, as set out in MPM and the Financial Reporting Manual (FreM). However, the Treasury noted there are inconsistencies between these documents. This …
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Government Response Summary
The Treasury will update the Financial Reporting Manual (FReM) to align to 6.11 of Managing Public Money (MPM) by Spring 2026 to include clearer reporting guidance for fee-charging public bodies. They will also keep this under review and consider if this will be sufficient or whether additional reporting requirements are necessary.
HM Treasury
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19
Accepted in Part
Incomplete and inconsistent fee disclosures hinder parliamentary and Treasury oversight of departments.
Recommendation
Poor reporting limits the Treasury and Parliament’s ability to monitor fees and hold departments to account. The NAO found that none of the seven services it examined complied fully with all of the Treasury’s disclosure requirements in their respective 2023-24 …
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Government Response Summary
The Treasury will update the Financial Reporting Manual (FReM) to align to 6.11 of Managing Public Money (MPM) by Spring 2026 to include clearer reporting guidance for fee-charging public bodies. They will also keep this under review and consider if this will be sufficient or whether additional reporting requirements are necessary.
HM Treasury
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Conclusions (1)
13
Conclusion
Accepted in Part
The Treasury told us it manages its fees and charges through periodic spending reviews (typically every two years) and expects accounting officers to follow its guidance. The Treasury described the spending review as a mechanism for departments to assess their cost base and funding needs, including their approach to fees …
Government Response Summary
The government disagrees with the recommendation but will update the Financial Reporting Manual (FReM) to align to Managing Public Money (MPM) to include clearer reporting guidance for fee-charging public bodies and embed oversight through the Spending Review returns every two years.