Background to the report

Understanding the cost of government’s services is important for achieving sustainable productivity improvements. By service we mean the people and underlying operations and activities to provide an outcome for a user. Examples include applying for an entitlement or submitting information required by regulations.

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Information about costs helps organisations to identify poorly performing services and inefficiencies, prioritise resources and assess the opportunities for innovation and digital transformation.

Scope of the report

This report is an initial assessment of the need for better cost information and steps government can take. We bring together recent findings and recommendations, and consider: 

  • the limitations in government’s understanding of service costs and previous attempts to improve cost information 
  • how government can address these limitations drawing on established techniques and good practice 

Conclusion

Improving productivity is essential if government is to deliver on its growth agenda, address fiscal pressures and improve outcomes for the people who depend on public services. The lack of reliable and usable cost information about government services makes it harder to identify opportunities for improvement, drive efficiency and realise meaningful cost savings.

Previous efforts to develop cost estimates have often lacked consistency or momentum, limiting their impact. Yet the potential value of robust cost data is significant. It can inform better decision‑making, support productivity gains, and help deliver on the government’s growth agenda. Public bodies should act with urgency to build a clearer, more consistent understanding of service costs.

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Publication details

Press release

View press release (15 Sep 2025)

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