By Vivienne Russell | 20 September 2013
Commercial and contracting skills in Whitehall remain weak and underdeveloped, the Public Accounts Committee said today as it issued its verdict on civil service reform.
The report, one of four published by the PAC today, highlighted the mismanagement of both the West Coast Main Line franchise and the Ministry of Justice’s interpreter contract as illustrations of the skills shortage.
‘Efforts to fill the skills gaps are hindered by real or perceived barriers to recruiting people with the necessary expertise and paying them enough,’ the report said.
It added the process for overseeing major projects lacked ‘real teeth’, and said the government would only be able to succeed in its objective of cutting public spending without affecting the frontline if it finds new and innovative ways to deliver its programmes.
‘The centre of government is failing to demonstrate the strategic leadership needed to change the way that government operates,’ the PAC said.
‘Both the Cabinet Office and the Treasury together need to be stronger if they are to exert effective corporate control and drive value for money change through central government.’
One of other PAC reports published today focused on IT procurement in central government.
Whitehall spent £6.9bn on IT in 2011/12 and, as part of government-wide procurement reforms, the Cabinet Office must now approve all IT spending over £5m.
The PAC said the changes were beginning to have an impact, with savings being secured and departments beginning to think more ‘intelligently’ about why and how they use IT.
But it added that weaknesses persisted, including a reluctance by departments to cede authority to the centre. The government should also use its buying power to ensure that suppliers, particularly those in the IT industry, pay their fair share of tax.
The PAC’s other two reports focused on Community Budgets and early intervention.
PAC chair Margaret Hodge said: ‘A central message emerging from our four reports today is that the Cabinet Office and the Treasury together need to be much stronger if they are to exert effective corporate control over spending in departments and achieve long-term sustainable savings for taxpayers.
‘For too long these two central departments have been half-hearted in their dealings with spending departments and have failed to achieve best value for the taxpayer. Tougher leadership from the centre of government is required.’
Julian McCrae, deputy director of the Institute for Government, said: 'The Public Accounts Committee’s call for greater leadership from the centre of Whitehall echoes many similar calls by professional accountancy bodies as well as the National Audit Office.
'We hope that the government’s Financial Management Review, due to report by the end of the year, will contain clear proposals to respond to the issues raised by the PAC.'
