The development of UK thinking on performance management & budgeting

Hayley Butcher
Cabinet Office (former) Valuation Office Agency (current)
UNCLASSIFIED

Overview
Our journey…..

• • • • •

The Public Services Agreement Framework (PSAs) A new coalition government (May 2010) The Spending Review A new perspective on accountability A new framework

Future direction?

(Coverage across individual UK countries varies, depending on devolved responsibilities)
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Public Services Agreements
Previous Government (1997-2010)

• • • •

Single system for public accountability & internal „policy‟ performance management Focused on cross-cutting public service outcomes Each PSA included a set of targets Each PSA included a Delivery Agreement between the Treasury and the responsible departments (performance-based budgeting) Supported by National Indicators reported at the local level

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Public Services Agreements - Example

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A new coalition government – May 2010
Number 10
Policy Unit

Quad
(Prime Minister, Deputy PM, Chancellor and Chief Secretary)

Treasury
Budgets & Spending control

Cabinet Office
Operational performance Policy performance

UNCLASSIFIED

Spending Review 2010
• Deficit reduction plan included total spending reductions of £126 billion by
2016/17

• Health, Overseas and Schools protected • Other Departmental budgets cut by an average of 19 per cent over 4 years • Fundamental, zero-based review of all capital spending plans • A focus on growth, fairness and reform of public services • A new transparency framework “Departmental Business Plans”

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A new perspective on accountability
Driven by new political, economic and philosophical perspectives:

• Localism / devolution • Transparency • Departmental focus • A focus on Structural Reform Actions • Continued focus on implementation (Implementation Group) • Improving government‟s own efficiency (Efficiency & Reform Group)
“Instead of bureaucratic accountability to the government machine, these Business Plans bring in a new system of democratic accountability – accountability to the people.” David Cameron, Prime Minister, 2010
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A new framework (from 2010)
Public accountability
Structural Reform Plan Actions

Business Plans
Input / Impact indicators

Spend & efficiency

Annual Reports & Accounts

website

Reporting to the centre

Implementation Reports

Permanent Secretaries Appraisals & Objectives

Dashboards?

Internal reporting & planning

Board reports

Corporate plans

Non-Executive Directors

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Business Plan actions - example

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The future?
• Refresh of Business Plans in May 2013 to reflect Mid Term Review • Further streamlining of the number of actions • Prioritisation of growth as the top Coalition Priority for each department • Further digitalisation of the Business Plans • Ongoing data improvement exercise • Next Spending Review in 2015/16
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