Parliamentary Committees and Public Enquiries
 Printable version
|
PAC: Consider merging small govt bodies to achieve better value for taxpayer money
The Public Accounts Committee (PAC) has published a report calling for the government to go further and faster in its efforts to consolidate small government bodies into larger organisations and overhaul reporting requirements for low-risk bodies.
Since 2009, successive governments have sought to reduce the number of public bodies, with efforts largely focused on consolidating larger bodies. However, during the same period, new bodies have also been set up, including small ones. In a new report, the PAC highlights concerns that it is unclear how much consideration is given as to whether establishing a new organisation is the most appropriate way to deliver a policy or programme.
The PAC is calling on government to consider how it could consolidate smaller public bodies into larger organisations, to both reduce bureaucracy and provide better value for money through economies of scale.
Many of government’s core public functions from overseeing elections to protecting consumers, are conducted by small government bodies. Despite their size, these bodies are largely required to produce the same annual reports as large organisations who are subject to higher risk. Current requirements can be time-consuming and costly and divert resources away from an organisation’s core activities.
The PAC warns that current financial reporting requirements are disproportionately onerous for smaller, low-risk bodies. The PAC is calling on the government to be more ambitious in its attempt to reduce small bodies and should tailor its approach to the risk levels of the organisations.
Small bodies often rely on shared corporate services provided by their sponsor department or other organisations. Under the government’s shared services strategy, small bodies are expected to migrate to shared service centres that will provide HR, payroll and other back-office functions.
Despite the potential benefits of shared services, the PAC warn this one-size-fits-all approach could hinder the agility of some organisations that would benefit from retaining in-house teams. The Committee is recommending the government should engage with organisations to ensure that they are only onboarded to shared corporate services if this is truly beneficial.
The PAC also found that small bodies face challenges in meeting some reporting requirements, as they are reliant on expertise and support provided from departments and larger organisations. The PAC found that clearer signposting of the support available would help small bodies access it more effectively and is calling on the government to set out how it will improve this process.
Chair comment
Sir Geoffrey Clifton-Brown, Chair of the Public Accounts Committee, said:
“Small organisations play an essential part in keeping the machinery of government moving. However, for years now successive governments have viewed their creation and existence as a mechanism for policy delivery, seemingly without considering whether this is always the most suitable, cost-effective way to achieve their aim. Merging small government bodies could go a long way towards achieving value for taxpayers' money.
“The regulatory landscape for small government bodies is complex and, at times, onerous. Our Committee believes that the requirements placed on organisations should be proportionate to the level of risk their activities present. Stronger cross-departmental working to better support these organisations could go some way towards improving reporting processes and allow organisations to focus on delivering their key functions.”
Further information
Original article link: https://committees.parliament.uk/committee/127/public-accounts-committee/news/213302/pac-consider-merging-small-govt-bodies-to-achieve-better-value-for-taxpayer-money/
