House of Commons - Committee of Public Accounts: The Duchy of Cornwall - HC 475


Book Description

The Duchy of Cornwall (the Duchy) delivered a good financial performance in 2012-13, increasing its total income and also its net revenue after taking account of costs. However, the Treasury is not doing enough to scrutinise the Duchy's financial strategy or transactions-it does not independently verify information offered by the Duchy, and details of its approvals for the Duchy's land transactions over £500,000 are not published. The Duchy has a Crown Exemption from tax, but there is no clear understanding of any consequences for its competitors, which are subject to corporation and capital gains tax. The transparency of The Prince of Wales's tax payments is limited by reporting only a combined amount for income tax and VAT. The Duchy's charter rules that each future Duke of Cornwall will be the eldest son and heir of the Monarch, which is out of line with the Succession to the Crown Act 2013.




House of Commons - Committee of Public Accounts: Charges for Customer Telephone Lines - HC 617


Book Description

Telephone services are a vital part of government support, accounting for 43% of all customer contacts. But departments are continuing to make extensive use of higher rate phone numbers for customer telephone lines despite the fact that many people are put off calling as a result. The most vulnerable callers, on the lowest incomes, face some of the highest charges. Costs to callers are even higher because the caller has to endure long waiting times and poor customer service. In the face of this evidence we welcome the Cabinet Office's acknowledgement that it was "inappropriate" for vulnerable citizens to pay a substantial charge to access public services and its commitment to establish best practice in this field and ensure it is followed across government




House of Commons - Committee of Public Accounts: Whole of Government Accounts 2011-12 - HC 667


Book Description

The Whole of Government Accounts for 2011-12 presents the combined financial activities of some 3,000 organisations. It provides vital data on which Government needs to act. Key issues have been identified, such as the £19.4 billion liability for clinical negligence claims. But it is frustrating to see other issues seemingly ignored in long-term policy making and spending decisions. In one year, the public sector was defrauded of over £20 billion and the tax gap rose to £35 billion. The financial liabilities for dealing with nuclear waste also keep growing. There is room for improvement in the document itself and how it is used. Users find it hard to understand, for example, why the Government debt and deficit highlighted in the WGA differ from those reported in the ONS's National Accounts. Also, by changing definitions in its commentary published alongside the WGA, the Treasury makes it difficult to track changes over time. The Treasury's introduction in the commentary of a new concept of so-called 'direct' expenditure leaves out key costs such as the interest paid on the National Debt. The publicly owned and controlled bodies - such as Network Rail and the taxpayer owned banks - are still being excluded, in defiance of normal accounting rules. The usefulness of the WGA is also being limited by the length of time it takes to produce the document and by poor quality data from some of the bodies. The accounts have again been qualified over the completeness, timeliness and accuracy of the information supplied for schools and academies




House of Commons - Committee of Public Accounts: BBC Severance Packages - HC 476


Book Description

In the three years to December 2012, the BBC gave 150 senior managers severance payments totalling £25 million. The BBC paid more salary in lieu of notice than it was obliged to in 22 of the 150 severance payments for senior managers in the three years to December 2012, at a cost of £1.4 million. It is unacceptable for the BBC, or any other public body, to give departing senior managers huge severance payments that far exceed their contractual entitlements. Some of the justifications put forward by the BBC were extraordinary. The Committee welcomes the changes that the BBC's Director General, Lord Hall, has made to cap severance pay. Recommendations include: the BBC should remind its staff that they are all individually responsible for protecting public money and challenging wasteful practices; to protect licence fee payers' interests and its own reputation, the BBC should establish internal procedures that provide clear central oversight and effective scrutiny of severance payments; the BBC Executive and the BBC Trust need to overhaul the way they conduct their business, and record and communicate decisions properly; the BBC Trust should be more willing to challenge practices and decisions where there is a risk that the interests of licence fee payers could be compromised; the BBC Trust and the BBC Executive need to ensure that decision-making is transparent and accountability taken seriously, based on a shared understanding of value for money, with tangible evidence of individuals taking public responsibility for their decisions.




House of Commons - Committee of Public Accounts: Access to Clinical Trial Information and the Stockpiling of Tamiflu - HC 295


Book Description

The report Access To Clinical Trial Information And The Stockpiling Of Tamiflu (HC 295) examines two separate but connected issues; the routine withholding of clinical trial information from doctors and researchers, and the effectiveness of stockpiling of Tamiflu during an influenza pandemic. The full results of clinical trials are being routinely and legally withheld from doctors and researchers by the manufacturers of medicines. The ability of doctors, researchers and patients to make informed decisions about treatments is being undermined. Regulators and the industry have recently made proposals to open up access, but these do not cover the issue of access to the results of trials in the past which bear on the efficacy and safety of medicines in use today. Research suggests that the probability of completed trials being published is roughly 50%. Trials which give a favorable verdict are about twice as likely to be published as trials giving unfavorable




House of Commons - Committee of Public Accounts: HMRC Tax Collection: Annual Report & Accounts 2012-13 - HC 666


Book Description

In pursuing unpaid tax, HMRC has not clearly demonstrated that it is on the side of the majority of taxpayers who pay their taxes in full. Last year the Department collected less tax in real terms than it managed to collect in 2011-12. This was despite the stated ambition to crack down on tax avoidance. The tax gap as defined by HMRC did not shrink, but in 2011-12 grew to £35 billion. Furthermore, this figure does not include all the tax revenue lost. HMRC pursues tax owed by the smaller businesses but seems to lose its nerve when it comes to mounting prosecutions against multinational corporations. It predicted that it would collect £3.12 billion unpaid tax from UK holders of Swiss bank accounts and this figure was built into budget estimates, but in 2013-14 it has so far secured just £440 million. HMRC aims to make the UK more attractive to business but the incentives to international corporations may also enable them to avoid tax. HMRC needs to strike the right balance between support and enforcement. The implementation of the Real Time Information system has been encouraging overall though some small businesses are continuing to struggle. It is of concern that HMRC is planning from April 2014 to fine companies even though some face continuing challenges. The successful implementation of Universal Credit depends on RTI continuing to work properly but the system does not have full disaster recovery arrangements. System failures could have serious consequences for payments to individuals




House of Commons - Committee of Public Accounts: Emergency Admissions to Hospital - HC 885


Book Description

Nearly one fifth of consultant posts in emergency departments were either vacant or filled by locums in 2012. Neither the Department nor NHS England have a clear strategy to tackle the shortage of A&E consultants and there is too much reliance on temporary staff to fill gaps. The Committee raised the possibility of paying consultants more to work at struggling hospitals. Greater use in A&E of consultants from other departments could also be made, or mandate that all trainee consultants spend time in A&E, or make A&E positions more attractive through improved terms and conditions. The slow introduction of round-the-clock consultant cover in hospitals - which will not be in place before the end of 2016-17 - is also having a negative impact. More people die as a result of being admitted at the weekend when fewer consultants are in A&E. Changing this relies on the British Medical Association and NHS Employers negotiating a more flexible consultants' contract, and neither the Department nor NHS England has direct control over the timescale or details of these negotiations. Hospitals, GPs and community health services all have a role to play in reducing emergency admissions - but financial incentives to make this happen are not in place. While hospitals get no money if patients are readmitted within 30 days, there are no financial incentives for community and social care services to reduce emergency admissions. Both the Department of Health and NHS England struggled to explain to us who is ultimately accountable for the efficient delivery of local A&E services




House of Commons - Committee of Public Accounts: Student Loan Repayments - HC 886


Book Description

There is at present around £46 billion of outstanding student loans on the Government's books, and this figure is set to rise dramatically to £200 billion by 2042 (in 2013 prices). By 2042 there will be an estimated 6.5 million borrowers of student loans. At the same time estimates for the amount of loans that will not be repaid are also rising and the Government assumes that 35-40% of outstanding loans will never be repaid. That is some £16 billion to £18 billion on the current debt of £46 billion and £70 billion to £80 billion on the estimated value of student loans by 2042. The Department for Business, Innovation & Skills (the Department) is not doing enough to secure value for money from its collection arrangements. The Department is unable to accurately forecast student loan repayments, and does not have a sufficient understanding of the likely future cost of non-repayment to the taxpayer. The Student Loans Company is not doing enough to ensure that it identifies and collects all the repayments due, given the substantial size of the financial assets involved, and will need to demonstrate value for money from the proposed sale of the student loans book.




House of Commons - Public Accounts Committee: The Border Force: Securing the Border - HC 663


Book Description

The Border Force's 7,600 staff operate immigration and customs controls at 138 air, sea and rail ports across the UK. It has a budget of £604 million for 2013-14, but is facing cuts. It has had to prioritise passenger checks at the expense of its other duties thereby weakening security at the border by neglecting other duties, such as the examination of freight for illicit goods, and checks in Calais on lorries to detect concealed illegal entrants. It was not able to meet and check up to 90,000 private planes or private boats arriving in the UK each year, leaving the UK border vulnerable and raising issues about resourcing and how priorities are set. The Border Force acknowledged that it had missed 8 of its 19 seizure and detection targets. Recommendations: set out how it will ensure that it delivers its full range of duties across all ports to provide the required level of national security; demonstrate that it can deliver its workload within the resources available; must address the gaps in the data it receives on people arriving in the UK, and the existing data needs to be cleansed to increase the quality, reliability and usefulness of the intelligence generated; set out how, and by when, it will have in place the functional IT systems it needs to underpin the security of the UK border; senior management must provide the organisation with a clear sense of purpose and tackle those barriers which inhibit the flexible and effective deployment of its staff.




HC 1110 - Promoting Electronic Growth Locally


Book Description

Despite the large sums available for promoting economic growth locally, little money has actually reached businesses. Of the £3.9 billion that has been allocated in total to these initiatives, only nearly £400 million had made it to local projects by the end of 2012-13. Under the Regional Growth Fund, the largest of the schemes, the Departments will need to spend £1.4 billion this year, compared to the £1.2 billion spent over the previous three years. Some £1 billion of the remaining £3.5 billion allocated to initiatives is currently parked with intermediary bodies such as local authorities, Local Enterprise Partnerships and banks - and the rest with the Departments. The Departments should introduce binding milestones for distributing funds and move quickly to claw back money not being spent - or spent disproportionately on administration - and redistribute it to better performers. Progress in creating jobs is falling well short of the Departments' initial expectations. The Departments' estimate of the cost per job created has also risen from £30,400 in Round One to £52,300 in Round Four - a 72% increase. The Departments also agreed that there is a risk of double-counting, with the same jobs scored more than once to different initiatives. The local growth initiatives have not been managed as a coordinated programme with a common strategy, objectives or plan. The recent creation by the Departments of a single growth directorate and a programme board is welcomed. Concern remains however that the Departments are not yet using the new oversight arrangements effectively.