21 January 2011
All civil servants need a good grasp of finance to help them make better decisions, according to the Treasury.
In a paper issued yesterday, Managing taxpayers' money wisely, the Treasury set out a series of commitments to help bring about a culture shift in the public sector. It forms part of the government’s Finance Transformation Programme.
The paper states that financial skills are essential for all strategic decisions and ‘it is not enough for departments to work through finance professionals’.
It goes on: ‘In future, all senior civil servants must demonstrate a minimum level of capability with financial information and concepts so that they can make responsible corporate decisions in their organisations. Finance is as much about forward-looking decisions as it is about accounting for current and past performance.’
The paper also commits departments to developing and publishing integrated operational and financial management information, making it possible to trace the relationship between the cost and impact of public services. This will ‘allow the public to form its own view on whether it is getting value for money’.
Economic secretary to the Treasury Justine Greening said: ‘We’ve got to get a grip on the public finances, but to do that across the public sector we’ve got to drive through a real change in culture. That means becoming more financially disciplined, commercial, adaptable and innovative at all levels when it comes to spending taxpayers’ hard-earned money.
‘The Finance Transformation Programme will mark a step change in the way that resources are managed by public servants, and Managing taxpayers’ money wisely sets out the framework for how we will make sure that happens.’
The paper also proposes the development of a ‘corporate centre’ for government, which would provide Whitehall departments with ‘strategic direction’.
It also confirmed that the National Audit Office will be invited to continue its programme of departmental financial management reviews.
