Press Release - Increased resources to improve public services
– a progress report on departments’ preparations
28 January 2004
Sir John Bourn, head of the National Audit Office, reported to
Parliament today that he had identified five critical issues which
departments must pay careful attention to if the extra £61 billion
spent on improving public services over the next three years is to
have its full impact.
It is too early to tell whether the increased funding will
deliver all the improvements planned. The report looks specifically
at the preparations made by the recipients of the three largest
increases, namely the Department for Education and Skills, the
Department of Health and the Department for Transport to use these
increased resources. This will provide a baseline for future NAO
reports assessing the actual improvements achieved, as the
additional funding begins to take effect.
Many of the issues highlighted apply to departments more
generally. As a consequence, the report sets out five generic risks
faced by many in Whitehall in their use of resources. These
are:
Complexity of the delivery chain
Departments’ intentions are often filtered through several
different organisations. For example, in the rail sector, the
Strategic Rail Authority, the Office of the Rail Regulator, Network
Rail and the train operating companies all have a role to play in
improving rail travel. Complex delivery chains increase the risk
that key aims are diluted, misunderstood or not given consistent
priority. Departments need to work to remove unnecessary
complexity, confusion and bureaucracy.
Capacity of delivery organisations
Essential work to strengthen capacity is underway. For example,
the Department for Education and Skills has training in place
designed to increase the programme and project management skills of
over 1,000 members of staff. Departments need to give particular
attention to developing project and programme management skills,
expertise in working in partnership and assessing suppliers’
capabilities. Shortfalls in capacity can prove expensive, often
requiring temporary solutions, bought at a premium.
Targeting Resources
Resources must be targeted to reach services most in need of
improvement and which focus on benefiting citizens. For example,
Ministers agree the Highway’s Agency’s programme of major
improvement schemes over £5 million with priority given to schemes
which contribute to congestion reduction and safety targets. The
Department of Health allocates around 75 per cent of NHS resources
directly to Primary Care Trusts to provide services to meet the
health care needs of their local populations.
Risk Management
Departments need to focus clearly on ensuring that each
organisation involved in service delivery is resilient. Departments
have made progress in identifying risks but more needs to be done
so that they are actively managed. They should avoid a too narrow
or mechanistic interpretation of risks.
Monitoring and Evaluating Performance
Credible evaluation of performance, supported by reliable and
transparent information, is important so that poor quality service
is quickly identified and remedied. But a balance is needed to
ensure that this process is not an unnecessary bureaucracy nor has
a perverse impact. And departments need to find ways of reducing
the pressures of multiple targets on front line staff.
Sir John Bourn said today:
"This unprecedented increase in public spending equates to
£1,000 for every person in the UK. I continue to examine the value
for money of individual projects and schemes but this report gives
the opportunity to set out the fundamental issues that all
departments need to address in the coming months and years in order
to deliver a truly improved public service."
Notes for Editors
Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
The Comptroller and Auditor General, Sir John Bourn, is the head
of the National Audit Office which employs some 800 staff. He and
the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 07/04
All enquiries to Bill Schaper, NAO Press Office:
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