The development of UK thinking on performance management & budgeting

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