HC 147 - Major Projects Authority


Book Description

The work of the Major Projects Authority is supported but without stronger powers it is unlikely to achieve its aim of a systemic improvement in project delivery across government. The projects in the MPA's portfolio represent a huge and rising cost to the taxpayer. The MPA, however, only has informal influence over departments. It has no powers if a department decides to proceed with a project against MPA advice. It needs to have stronger, more formal mechanisms for driving change, and there should be transparency where ministers or officials have rejected its recommendations. The MPA also needs to focus its efforts more on the early stages of a project, working with departments to ensure that they have devoted sufficient attention to the concept, design and business case for projects before seeking approval. It could also improve its impact by prioritising its work more effectively. The creation of the Major Projects Leadership Academy is welcomed, but the MPA needs to target top decision-makers as well as managers. Nobody in central government is responsible for overseeing projects at a strategic whole-of-government level. The Treasury should take ownership and responsibility for overseeing the government portfolio. The MPA should also publish more information on each project, including the amount spent to date, even if this means reviewing the Government's transparency policy. There is also particular concern that the decision to award a 'reset' rating to the Universal Credit project may have been an attempt to keep information secret and prevent scrutiny




HC 708 - Managing and Removing Foreign National Offenders


Book Description

It is eight years since the Committee last looked at this issue and they are dismayed to find so little progress has been made in removing foreign national offenders from the UK. This is despite firm commitments to improve and a ten-fold increase in resources devoted to this work. The public bodies involved are missing too many opportunities to remove foreign national offenders early and are wasting resources, through a combination of a lack of focus on early action at the border and police stations, poor joint working in prisons, and inefficient caseworking in the Home Office. This, combined with very poor management information and non-existent cost data, results in a system that appears to be dysfunctional. Our concerns about the system were not allayed by the evidence we received. The Home Office will need to act with urgency on the recommendations we make in this report if it is to secure public confidence in its ability to tackle effectively these and the wider immigration system issues on which the Committee has previously reported.




HC 893 - Public Health England's Grant to Local Authorities


Book Description

Since it was created in 2013, Public Health England (PHE) has made a good start in its efforts to protect and improve public health. Good public health is vital to tackling health inequalities and reducing burdens on the NHS. The Committee were impressed by the passion shown by PHE's Chief Executive, and his determination to challenge Government to consider public health in wider policymaking. However, we are concerned that the Department of Health is not getting local authorities to their target funding allocations for public health quickly enough, with nearly one third of 152 local authorities currently receiving funding that is more than 20% above or below what would be their fair share. The Agency decided not to change the grant distribution for 2015/16. Local authorities are also presently constrained by being tied into contracts to which the Department had previously committed, such as for sexual health interventions. It is not clear whether the public health grant to local authorities will remain ring-fenced, and they need more certainty to better plan their public health programmes. If the ring-fence is removed, there is a risk that spending on public health will decline as councils come under increasing financial pressures. There are still unacceptable health inequalities across the country, for example healthy life expectancy for men ranges from 52.5 years to 70 years depending on where they live. These inequalities make PHE's support at a local level particularly important but the Committee are concerned that PHE does not have strong enough ways of influencing local authorities to ensure progress against all of its top public health priorities. Finally, given how important it is to tackle the many wider causes of poor public health, PHE needs to influence departments more effectively and translate its own passion into action across Whitehall.




HC 860 - Tax Avoidance: The Role Of Large Accountancy Firms (Follow-Up)


Book Description

The tax arrangements PwC promoted in Luxembourg bear all the characteristics of a mass-marketed tax avoidance scheme according to the Public Accounts Committee. Large accountancy firms advise multinational companies on complex strategies and contrived structures which do not reflect the substance of their businesses and are instead designed to avoid tax. In light of the publication of leaked documents detailing some of the tax advice it has given to its multinational clients, the Committee took evidence from PriceWaterhouseCoopers (PwC). PwC did not convince the Committee that its widespread promotion of schemes to numerous clients, based on artificially diverting profits to Luxembourg through intra-company loans, constituted anything other than the promotion of tax avoidance on an industrial scale. The fact that PwC's promotion of these schemes is permitted by its own code of conduct is clear evidence that Government needs to take a more active role in regulating the tax industry, as it evidently cannot be trusted to regulate itself. HMRC should set out how it plans to take a more active role in challenging the advice being given by accountancy firms to their multinational clients. In contributing to the OECD's discussions aimed at reforming international tax law, HMRC should push for a more rigorous and meaningful definition of what "substance" means in respect of business, particularly if multinational companies conduct any business in the countries where they shift profits to in order to avoid tax. The Committee believes strongly that the Government must act by introducing a code of conduct for all tax advisers.




HC 705 - Managing and Replacing the Aspire Project


Book Description

Most of HM Revenue and Customs' (HMRC's) major tax collection systems are provided under one contract, the Aspire contract. While this has provided stability over the last ten years HMRC has not managed the costs of the contract well. It has cost some £7.9 billion over this period and generated profits for the suppliers of some £1.2 billion. When the current contract ends in 2017 HMRC intends, in accordance with government IT procurement policy, to move from the current single contract to a new model with many short-duration contracts with multiple suppliers. However, HMRC has made little progress in defining its needs and has still not presented a business case to government. Once funding is agreed, it will have only two years to recruit the skills and procure the services it will need. Moreover, HMRC's record in managing the Aspire contract and other IT contractors gives the Committee little confidence that HMRC can successfully achieve this transition or that it can manage the proposed model effectively to maximise value for money. HMRC also demonstrates little appreciation of the scale of the challenge it faces or the substantial risks to tax collection if the transition fails. Failure to collect taxes efficiently would create havoc with the public finances.




HC 457 - The Work Programme


Book Description

The Department for Work and Pensions is responsible for the Work Programme, which aims to help people who have been out of work for long periods to find and keep jobs. Specifically the Work Programme aims to increase employment, reduce the time that people spend on benefit, and to improve support for the hardest-to-help - those participants whose barriers to employment are, relatively, greater than others on the programme. The Department assigns people to one of nine payment groups depending on characteristics such as age and the benefit each person is claiming. The Department pays prime contractors to provide support to people to get them into long-term employment using a payment-by-results approach. The amount the Department pays a prime contractor depends on its success in getting people into sustained work and the payment group of the individual. The Department has 40 contracts with 18 prime contractors. Either two or three prime contractors operate in 18 different geographic areas across England, Scotland, and Wales. Prime contractors may subcontract some or all of the support they provide. The Department will stop referring people to the Work Programme in March 2016, although payments to prime contractors will continue until March 2020. Between June 2011 and March 2016, the Department expects to refer 2.1 million people to the Work Programme and forecasts total payments to prime contractors of £2.8 billion.




HC 833 - Financial Sustainability of Local Authorities 2014


Book Description

The Department for Communities and Local Government does not have a good enough understanding of the impact of funding cuts, either on local authorities' finances or on services. It is unclear whether the Department is exercising a cross government leadership role with respect to local government. It relies on data on spending and has little information on service levels, service quality, and financial sustainability. HM Treasury should better support the Department by ensuring compliance with its requests for information at future spending reviews. While the Department has identified that local authorities will need to change the way they deliver services to remain financially sustainable, it is unclear if it is providing sufficient leadership to ensure they can implement service transformation programmes successfully. Furthermore, if funding reductions were to continue following the next spending review, we question whether the Department would be in a position to provide assurance that all local authorities could maintain the full range of their statutory services. Overall, as pressure from cuts grows, so do the risks to local authorities' finances and their provision of services. The depth and quality of the Department's insight into these issues needs to keep pace with these changes, something it has struggled to achieve so far.




HC 675 - Oversight of the Provate Infrastructure Development Group


Book Description

The Department for International Development is the main funder of the Private Infrastructure Development Group, a multilateral agency which invests in infrastructure projects in developing countries. The Department has not used its position as by far the dominant funder of PIDG to influence the direction of its operations and improve its performance. The Department's oversight of PIDG has not been sufficiently 'hands on'. The Committee is concerned that the Department has insufficient assurance over the integrity of PIDG's investments and the companies with which it works and the Department has not done enough to put a stop to PIDG's wasteful travel policies and poor financial management.




HC 709 - Lessons from Major Rail Infrastructure Programmes


Book Description

The Department for Transport is responsible for a number of ambitious, expensive transport infrastructure programmes including the planned High Speed 2 programme. The Committee though is not convinced that these programmes are part of a clear strategic approach to investment in the rail network. In particular, recent proposals for a railway connecting cities in the north of England - a possible High Speed 3 - suggest that the Department takes a piecemeal approach to its rail investment, rather than considering what would benefit the system as a whole and prioritising its investment accordingly. The Department told us it will deliver the full High Speed 2 programme within its overall funding envelope of £50 billion. However, this funding includes a generous contingency and the Committee is concerned that, without appropriate controls, it could be used to mask cost increases. When it comes to the wider regeneration benefits, insufficient planning meant that regeneration benefits in Ebbsfleet did not flow from High Speed 1 as expected. Although the Department told the Committee that it has learned and is applying these lessons on High Speed 2, it needs to set out clearly who is responsible for ensuring that benefits are realised, and how that work will be coordinated.




HC 584 - Reforming the UK Border and Immigration System


Book Description

The Home Office acquired direct responsibility for the significant problems faced by the UK Border Agency when it was abolished in March 2013 and its functions were transferred to the Department. While performance in most of the areas transferred has held steady, the Department has failed to deal with long standing backlogs of asylum claims. Many older asylum claims - some over seven years old - remain undecided, while a new backlog of cases awaiting an initial decision is forming. This is partly as a result of a botched attempt by the Agency to downgrade staff that resulted in 120 experienced caseworkers leaving. The Department lacks the data it needs to manage its backlogs and the overall workload effectively. The failure of a number of IT projects has also compromised the Department's ability to track people through the immigration system and ensure that those with no right to remain are removed from the UK.