7

Government bodies require practical examples and clearer guidance for managing fee-setting challenges.

Recommendation
The NAO highlighted that government bodies would like practical examples of how to address common operational problems, such as forecasting user demand, or when and how to reflect inflationary pressures, so they can consider options on how best to handle them.11 The Treasury recognises that charging bodies face issues and need to make trade-offs, and stated that it is important Treasury shares best practice on how to manage these from its perspective.12 The Treasury told us it has since strengthened its guidance in Chapter six of MPM, and will provide more clarity about what should be considered when looking at setting fees. The Treasury believes these 5 C&AG’s Report, para 1.4, 2 6 C&AG’s Report, para 3 7 C&AG’s Report, para 2.25 8 Qq 29, 46 9 Q 28 10 Qq 6, 26 11 C&AG’s Report, para 3.3 12 Q 48 8 improvements will also allow its spending teams to guide departments though the process with clarity on the guidance and to provide constructive challenge and timely change.13
Government Response

A response document is linked to this report, dated 1 April 2026. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.8 yr
Report published 10 Dec 2025