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Central and local government are increasingly using complex delivery chains and an increasingly diverse set of providers to deliver services to the public. A chain or network of different organisations are often required to deliver programmes. Providers range from public sector bodies, to large commercial companies and small charities. In order to protect taxpayers' and citizens' interests and to provide accountability, departments need reliable information and systems which can help them understand and take steps to address providers' performance when needed (whether financial, governance and/or service standards).

Government also needs skills to manage major commercial contracts with providers. This means that it needs to set clear aims and frameworks for delivery; it needs to advise and guide the organisations providing services, and monitor their performance against the agreed targets and standards. Where performance is not good enough it may need to intervene, which can be through expert support, financial penalties, requirements for new management or a specific action, or, where necessary, terminating the contract. In addition, as the government increasingly creates 'quasi markets', it needs the skills to balance consumer protection with the need to let providers fail so that these arrangements achieve the benefits of being markets.

Key NAO publication:

• Academies and maintained schools: Oversight and intervention (Oct 2014)