24
Accepted
ESN's original cost-saving objectives unlikely; benefits uncertain until 2024 business case
Conclusion
The Department’s original objectives for ESN were to save money and bring mobile data to emergency services.80 It will now take at least 10 years from now for the potential 70 C&AG’s Report, para 2.11 71 Q 60 (27 March) 72 C&AG’s Report, paras 1.26, 2.11 and Figure 1 73 Q 61 (27 March) 74 C&AG’s Report, paras 2.12–2.13, Figure 8 75 Qq 61–63 27 March 76 C&AG’s Report, para 12 77 Q 55 (27 April) 78 Q 60 (27 March) 79 Q 32 (27 March) 80 C&AG’s Report, para 2.30 The Emergency Services Network 15 savings to recoup the total cost of ESN.81 The Department said it would not be certain about costs or benefits until it revised the programme’s business case, which it expected to do in 2024.82
Government Response Summary
The government agrees with the committee's observation, confirming that the ESMCP is reviewing the business case to reflect the CMA ruling and new supplier procurement, with a target implementation date of December 2023.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: end December 2023 2.2 If the CMA decision is upheld following appeal, and the charge control comes into effect, there will be scope to reduce local costs for users of the Airwave service and the department will continue to engage with users to determine how best to support user organisations with transition activities. 2.3 Scope for central support is limited by the way government funds are allocated across departments, policy areas and programmes. This will constrain the ability to pass the charge control savings directly onto users. 2.4 The reduced costs of Airwave will result in an overall government saving, rather than a department or programme gain. Funding decisions beyond the financial year 2024/25 are subject to future HM Treasury spending reviews based on the programme’s approved business case. 2.5 The ESMCP is reviewing the business case to reflect the CMA ruling to impose a charge control and procurement of new suppliers. Users are expected to realise savings from reduced Airwave costs. Delayed spend on ESN devices will offset the cost of new Airwave devices. The programme business case includes agreed principles that govern how costs are allocated centrally or to user groups. These principles can be varied only with agreement from all users and funding sponsor bodies. 2.6 The programme is engaging closely with user organisations to provide support for their transition activities, while operating in accordance with Home Office and HMG governance and funding structures.
Source
Committee
Public Accounts Committee
Inquiry
Emergency Services Network
Report
Sixty-Fourth Report - The Emergency Services Network
14 Jul 2023
HC 1006
Addressee Bodies
HM Treasury
Timeline
Recommendation age
3.0 yrs
Report published
14 Jul 2023