3
Resolve short and long-term funding uncertainties for the Shared Services Strategy.
Recommendation
Departments do not have the funding they need to deliver on their Shared Services Strategy. There are both short- and long-term funding uncertainties to delivering the strategy. In the short-term, HM Treasury approved a funding envelope of £300 million to support the clusters to deliver the strategy and to address the risk that 6 Government Shared Services departments could be left with unstable and unsupported systems in the interim. This covers the 2021 Spending Review period to 2024–25. Departments have stated that this settlement may not be enough to allow them to proceed with their preferred procurement options if final costs, which they currently estimate to be between £382 million and £403 million, continue to exceed the funding envelope. In the long- term, clusters have forecast that an additional £480 million of investment funding is required in the subsequent Spending Review period after 2024–25 to deliver the full strategy. There is clearly a risk to the delivery of this business-critical change programme since there is no guaranteed level of funding. Recommendation 3: In its six-month update, the Cabinet Office should set out what action has been taken to resolve both the short- and long-term funding uncertainties outlined above.
Government Response
A response document is linked to this report, dated 21 July 2023. Response attribution to this recommendation has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Inquiry
Government Shared Services
Report
Fiftieth Report - Government Shared Services
05 May 2023
HC 734
Addressee Bodies
HM Treasury
Timeline
Recommendation age
3.4 yrs
Report published
05 May 2023