Government announces new
steps to strengthen financial discipline in the public sector
The Government has
today published further details of a new Finance Transformation
Programme which will make financial implications inherent to every
decision taken in the public sector. The Economic Secretary to the
Treasury, Justine Greening, set out the foundations for this
programme at the Government Finance Profession’s annual training
event, and these are published today in Managing Taxpayers’ Money Wisely.
Following commitments in the Programme for Government and the
Spending Review Framework, as well as consultation with
stakeholders, Managing Taxpayers’ Money Wisely sets out four key
areas of focus for the Finance Transformation Programme:
* effective leadership, driving performance from the top;
* a cost conscious culture so that every decision is built on
informed financial assessment;
* professionalism so that all public servants demonstrate
financial awareness;
* expert central functions – ensuring a coherent approach to
financial management from the centre of government.
The Treasury will oversee and reinforce these commitments, with
updates on the Finance Transformation Programme – and its related
activities – available on the HM Treasury website.
The initial focus of the programme will be on developing expert
central functions and driving professionalism.
Justine Greening MP, said:
“We’ve got to get a grip on the public finances, but to do that
across the public sector we’ve got to drive through a real change
in culture. That means becoming more financially disciplined,
commercial, adaptable and innovative at all levels when it comes
to spending taxpayers’ hard earned money. The Finance
Transformation Programme will mark a step change in the way that
resources are managed by public servants, and Managing Taxpayers’
Money Wisely sets out the framework for how we will make sure that happens.”
Notes for Editors
1. The Economic Secretary to the Treasury announced the Finance
Transformation Programme at the Government Finance Profession’s
annual training event on 12 November 2010.
2. Managing Taxpayers’ Money Wisely can be found here:
http://www.hm-treasury.gov.uk/psr_managing_taxpayers_money.htm
3. The paper addresses commitments made in the Coalition’s
Programme for Government. The section on deficit reduction
emphasises the need for prompt action and one of the commitments
made is “We will create strong financial discipline at all levels
of government and place an obligation on public servants to manage
taxpayers’ money wisely.”
4. Strengthening financial discipline is taken forward further in
section 2.8 of the Spending Review Framework, which, in summary,
referred to the following:
* re-positioning and strengthening finance directors in government;
* providing a long term financial management strategy;
* introducing financial performance measures and improving risk
management; and
* increasing the quality, transparency and accountability of
financial information.
The Spending Review Framework can be found here:
http://www.hm-treasury.gov.uk/d/spending_review_framework_080610.pdf
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