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Public Bodies 2016 2 Public Bodies 2016 Contents 3 Public Bodies 2016 2 Public Bodies 2016 Contents 3 Contents Ministerial foreword 05 The landscape at a glance 06 Strategic overview 09 Objective 1: maximising outcomes in a cost-effective way 13 Objective 2: promote good governance and accountability 17 Objective 3: manage and simplify the landscape 19 Annex A – summary tables 23 Annex B – methodology 39 4 Public Bodies 2016 Ministerial foreword 5 Ministerial foreword Ben Gummer Minister for the Cabinet Office and Paymaster General The Government is committed to Working in partnership with departments and public bodies, we will deliver a more building a country that works for cost-effective, transparent and simplified everyone – not just the privileged landscape that is better able to meet the few. Over the next few years needs of the people it serves. this will require the Civil Service We have set ourselves three objectives this to deliver policies that enhance Parliament: • provide continuing support and public services, share wealth challenge to ensure government more widely, enact social reforms maximises outcomes delivered and strengthen the Union and our through our public bodies in as cost- democracy. effective a way as possible; • promote good governance and Recent events provide a powerful reminder accountability; and that for a government to recover and maintain the public’s trust, it needs to deliver • manage and simplify the landscape on its commitments. to improve public understanding and scrutiny of how government delivers Public bodies are a crucial part of how services through our public bodies. government delivers its priorities. They deliver vital services in a range of areas. They This report outlines how we will meet these protect consumers and businesses. They objectives. provide expert advice to many organisations. I would like to thank officials in the Public Well-governed, effective and efficient public Bodies Reform team, their colleagues across bodies help contribute to building public trust Whitehall and staff in public bodies for all their in government at a time when this has never hard work. Working together with departments been more important. and public bodies, we will build on our success Over the last Parliament the Government’s to ensure that this Government continues to overall reform programme reduced the cost deliver high-quality services for the people of of administering public bodies by £3 billion. the United Kingdom. This is a fantastic achievement but we recognise that there is more to do. 6 Public Bodies 2016 The landscape at a glance As at 31 March 2016: 463 £195.3 266,137 public bodies of which: staff employed 40 are executive billion (full-time equivalent) agencies; gross resource by public bodies spend* for public 399 are bodies non-departmental public bodies; 24 are non-ministerial Departments £183.4 billion net^ resource spend for public bodies * Spend is reported on a different basis to Public Bodies 2015. See Annex B. ^ Difference between gross and net; net deducts income, which includes intra departmental expenditure, as well as external sources. _ HM Revenue and Customs (HMRC) is included for the first time in Public Bodies 2016. The landscape at a glance 7 ALB landscape by resource spend NHS England Health and £110.49 bn National Offender Social Care Legal Aid Management Information Agency Service Centre £1.80 bn £3.75 bn £203 mn HM Courts and MOJ £7.54 bn Tribunals Service DH £114.27 bn Health Education £1.43 bn England £2.02 bn Public Health England £925 mn National Crime HO Agency £654 mn Care Quality £435 mn Commission £229 mn Rural Payments DCMS £1.57 bn Agency £1.37 bn DEFRA £2.65 bn Arts Council Environment England £438 mn Agency £771 mn HMT £4.16 bn Crown Prosecution AGO HMRC Service £551 mn £783 mn 463 ALBs £3.73 bn Gross resource spend £195.3 billion Valuation Govt. Legal Department Office Agency £551 mn CO £218 mn £198 mn Nuclear DECC Decommissioning £1.67 bn UK Statistics Authority £1.42 bn MOD Authority £734 mn £766 mn Driver and Vehicle Licensing Agency Defence Science £445 mn and Technology DfT £1.56 bn Laboratory £581 mn Driver and Vehicle Standards Agency BIS £7.44 bn £354 mn Her Majesty’s Land British Transport Registry £261 mn Policy Authority Maritime and Coastguard £266 mn DfE Construction Agency £52.22 bn Industry Training £287 mn Board £307 mn Skills Funding Education Agency £3.59 bn Funding Agency DWP £51.89 bn £336 mn Health and Safety Executive Higher Education £213 mn Funding Council for England £1.58 bn UK Trade & Investment £327 mn • Departmental bubbles show the resource spend for all bodies hosted by that department, including non-ministerial departments (e.g. HMRC). The following departments are not included: DfID, FCO, ECGD, NI Office and Scotland Office. • The 30 largest spending ALBs are shown here. They capture 97% of the total gross resource spend. 8 Public Bodies 2016 Strategic Overview 9 Strategic Overview Purpose of this Report Triennial Reviews in the last Parliament applied to NDPBs only, and looked at Public Bodies 2016 is an annual directory of 1 issues specific to the body. Feedback from all arm’s-length bodies (ALBs) recording cost departments and ALBs suggested that these and non-cost data for each executive agency reviews should be conducted in a more (EA), non-departmental public body (NDPB) proportionate way and in a shorter timescale. and non-ministerial department (NMD) as at In this Parliament, we also have thematic 31 March 2016. We also take this opportunity reviews that look across common functions to set out our strategy for public bodies reform or services in ALBs to identify opportunities for the remainder of this Parliament. that reviews within a single department might Where are we now? not be able to reveal. Our mission in this Parliament is to drive the 2. There is an opportunity to bring collective delivery of a simplified, customer- greater coherence to relationships centric and cost-effective system for the between departments and their ALBs arm’s-length provision of public services. ALBs play a crucial role in the delivery of There are three challenges: public services and are the most common interface between the public and government. 1. The need for fiscal discipline is very Government relies on ALBs and the expertise much still with us they bring to the delivery of vital services in a In the last Spending Review, many range of areas. The relationships departments departments managed significant cost have with ALBs across the system are an reductions by abolishing and merging a important enabler of this. number of bodies. To maximise delivery of A recent National Audit Office (NAO) review outcomes within tighter spending envelopes, and subsequent Public Accounts Committee many departments have embarked on (PAC) report2 found that while there were group-wide transformation extending beyond many positive examples, there were also the core department into their ALBs. ALB disparate approaches between departments review programmes complement this by on the oversight of their ALBs. We welcome providing continuing assurance that ALBs the opportunity highlighted by both the NAO maximise delivery of outcomes as cost- and PAC reports to bring much greater effectively as possible. coherence to departments’ relationships with 1 As Public Bodies 2016 covers the financial period from 1 April 2015 – 31 March 2016, this report does not reflect the Machinery of Government changes that occurred in July 2016. 2 NAO, Departments’ Oversight of Arm’s Length Bodies: A Comparative Study, July 2016 and subsequent PAC report, Departments’ Oversight of Arm’s Length Bodies, October 2016. 10 Public Bodies 2016 ALBs, drawing from a better understanding of Our strategic objectives what works well currently. To effectively address these challenges, we 3. The landscape remains complex and must adopt an approach that looks across is not necessarily easy for the public government. or commentators to understand Working collectively across government, Despite the 2010-15 programme significantly collaborating with the senior leaders and reducing the number of ALBs, there are still Non-Executive Directors (NEDs) from both 463 public bodies and this landscape is not departments and ALBs, we will deliver three well-understood. Much of the landscape has objectives this Parliament: evolved over a long period of time, with no systematic approach to the overall design or • to provide continuing support and delivery of services. challenge to ensure government maximises the delivery of outcomes The ALB landscape will always be complex. through our public bodies as cost- We need to manage this complexity to make effectively as possible; it easier for the public to understand how services are delivered and to hold to account • to promote good governance and those that are responsible. accountability; and • to manage and simplify the landscape to improve public understanding and scrutiny of how government delivers services through our public bodies. Strategic Overview 11 12 Public Bodies 2016 Objective 1: maximise outcomes in a cost-effective way 13 Objective 1: maximise outcomes in a cost-effective way Where are we now? ample opportunity to learn from best practice elsewhere in the pursuit of this transformation. The previous programme made significant reductions to the overall number of ALBs In this Parliament, we will provide continuing and their overall cost. There remain support and challenge through the considerable pressures on cost and programme of Tailored, Functional and government departments are responding to Departmental Reviews to ensure that we these by planning unprecedented levels of are maximising outcomes. We will take a transformational change of their ALBs over the proportionate approach depending on ALB next few years. size, political salience, risk and opportunity. It is worth noting that 30 ALBs account for In recognition that sustainable cost reductions 97% of total ALB resource spend.³ will require innovation, it is an opportune time to consider what works well across all parts of government.
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