Complex delivery methods, poor data "hamper holding Government to account": MPs

Increasingly complex delivery methods and the continuing lack of good cost and performance data are undermining Parliament's ability to hold the Government to account, MPs have warned.

In a report, Accountability to Parliament for taxpayers’ money, the Public Accounts Committee also said there were "too many examples" of departmental Accounting Officers (AOs) allowing projects and initiatives such as funding to the charity Kids Company and the e-Borders programme "to proceed unchallenged, despite strong evidence of poor value for money".

The report said: “Where an AO has serious concerns about value for money, he or she can flag the concern by formally (and publicly) requesting from the Minister a ‘ministerial direction’ to proceed. But directions are not being used effectively as an accountability control: they are few and far between, despite AOs having concerns about the value for money or feasibility of policies.

“There is consequently a damaging lack of transparency as AOs’ concerns about the use of public money are not brought to Parliament’s attention.”

The PAC report added that the growing use of delivery methods, such as devolution to local areas, outsourced contracts, government companies and cross-cutting initiatives, had “often not been accompanied by clarity over accountability arrangements”.

It pointed to the committee's recent inquiry into acute hospital trusts, where three-quarters of such trusts were found to be in deficit "but departmental targets for trusts to make savings were based on flawed data and had a damaging effect on trusts' finances".

The PAC put forward measures in the report that it believes will strengthen accountability. These include the Treasury ensuring all departments prepare accountability system statements with their next annual report and accounts, "making clear who is accountable for what at all levels".

The committee said it intended to return regularly to issues of accountability in its work, “to ensure government can properly be held to account for the spending of taxpayers’ money”.

Meg Hillier MP, Chair of the PAC, said: "Taxpayers are entitled to know how their money is spent and whether they are getting good value. Poor decisions in government waste public money. Serious errors waste far more.

“Any threat to effective scrutiny requires serious attention as it risks weakening Parliament's ability, on behalf of the public, to hold the Government to account for its spending.

“We are particularly concerned that accountability arrangements have lagged behind changes in the way government conducts its business. Data is persistently inadequate and there is an urgent need for greater clarity on lines of responsibility.

“We also believe that notwithstanding their responsibility to government ministers, departmental Permanent Secretaries and other Accounting Officers could and should be more robust in standing up for taxpayers' interests.”