The Ministry of Defence does not place sufficient emphasis on financial management in its decision making. Annual financial plans at the MOD have been over-committed. During 2009-10 the Department had to find additional savings of £800 million to bring its planned expenditure back into line with its budgets.
The NAO has published its report on the 2009-10 accounts of HM Revenue and Customs.
This report looks at how much the Treasury’s Value for Money savings programme has improved value for money across government. The programme aims to achieve government-wide annual savings of £35 billion from 2008-09 to 2010-11.
The Department for Business Innovation and Skills and HM Treasury asked the National Audit Office to undertake reviews of the Regional Development Agencies outside London.
Over half of all businesses believe there is too much regulation, according to a survey of businesses commissioned by the National Audit Office and the Local Better Regulation Office. Although most businesses believe that the purpose of regulation is clear, over 60 per cent of businesses think that the level of regulation is an obstacle to their success.
The Comptroller and Auditor General has qualified his audit opinion on the 08-09 Equality and Human Rights Commission accounts owing to irregular expenditure in a number of areas.
In its final review of the quality of the data systems used by departments to measure progress against PSAs, the NAO underlines the vital importance of measuring government performance.
The MOD, one of the largest landowners in the UK, has strengthened its estate planning and achieved significant receipts from disposal of property. However, the changes are not yet sufficient to drive value for money for the taxpayer rigorously.
The Environment Agency’s approach to tackling diffuse water pollution, such as run-off from agricultural land, has not, to date, proved value for money. The development of River Basin Management Plans now offers an opportunity to target work by the Agency and others to tackle this complex problem.
The Ministry of Justice has made progress in improving its financial management, but currently falls short of best practice in the consistency of its financial management approach, its understanding of its costs and the integration of its financial management systems and processes.
The Department of Health has made a serious attempt to tackle health inequalities across England. But, having set a target in 2000 to reduce health inequalities, it was slow to take action and health inequalities were not a top priority for the NHS until 2006.
Impact Assessments, used to assess the need for and the likely impact of proposed government policy interventions, do not yet consistently provide a sound basis for assessing the merits of different policy proposals. Further improvement in the quality and use of Impact Assessments is needed to achieve value for money.
HMRC has taken significant steps to improve the efficiency of National Insurance administration, but needs to demonstrate more clearly that it is providing value for money from the £350 million it spends each year and take advantage of opportunities to secure further savings.
Comprehensive Spending Review 2007 covering the period 2008-2011
Review of the data systems for Public Service Agreement 28 led by the Department for Environment, Food and Rural Affairs: ‘Secure a healthy environment for today and the future’
The use of PFI by local authorities to improve housing, usually in areas with a high need for housing and where stock condition is particularly poor, has had a measure of success. However, risks to value for money of the programme have not been managed.
DFID has successfully supported developing countries in progress against goals of universal enrolment in primary education and improved educational prospects for girls. However, more emphasis on quality and cost-effectiveness is important.
Most PFI hospital contracts are well-managed and the evidence indicates that they are currently achieving the value for money expected when the contracts were signed. There continue to be risks, however, to the long-term value for money of these contracts.
Comprehensive Spending Review 2007 covering the period 2008-2011
Review of the data systems for Public Service Agreement 6 led by the Department for Business, Innovation and Skills: ‘Deliver the conditions of business success in the UK’
Comprehensive Spending Review 2007 covering the period 2008-2011
Review of the data systems for Public Service Agreement 1 led by the Department for Business, Innovation and Skills: ‘Raise the productivity of the UK economy’