Payment by results (PbR) schemes are hard to get right, and are risky and costly for commissioners. Credible evidence for claimed benefits of PbR is now needed.
HM Treasury and HMRC do not keep track of tax reliefs intended to change behaviour, or adequately report to Parliament on whether tax reliefs work as expected.
The report covers HMRC’s progress in operating the PAYE service, its implementation of its new Real Time Information service and its performance in tax collection and in reducing error and fraud in personal tax credits.
Inadequate forecasting is an entrenched problem for government departments, leading to poor value for money and increased costs for the taxpayer.
Treasury expects all departments to evaluate the ex post impacts and costs of all their interventions, including spending, taxation and regulation. This activity should provide valuable information on the cost-effectiveness of government interventions, for the purposes of accountability and to learn lessons to improve current and future policies.
Two government programmes aiming to help families with multiple challenges, such as unemployment and anti-social behaviour, are starting to provide benefits but considerable challenges remain.
The Government’s ability to show that its spending decisions represent the best value for money is being hindered by the patchy availability of good information.
Better access to public information can improve accountability and service delivery. Government needs a firm grasp of whether that potential is being realised.
In 2007, the five UK audit agencies jointly launched a set of indicators for each of five corporate service activities – estates management, finance, human resources, ICT, and procurement. Two further services were subsequently added – communications and legal.
Option appraisal is crucial to ensure Government decisions are fully informed and based on robust evidence. Appraisals can be applied at project, programme or policy levels, and have particular value when there is pressure to reduce costs while minimising effects on frontline services or the wider economy.
