A think-tank report said that the Labour government (like its Conservative predecessor) had started by strengthening underlying budget balances for three years after taking office, but had then allowed them to drift steadily back into the red. This meant that they were already borrowing significant amounts when the onset of recession required them to borrow more.
Source: Robert Chote, Carl Emmerson and Gemma Tetlow, The UK Public Finances: Ready for Recession?, Briefing Note 79, Institute for Fiscal Studies (web publication only)
Links: Briefing Note
Date: 2008-Oct
The Chancellor of the Exchequer said that it would be 'perverse' to continue applying the government's fiscal rules (placing strict limits on government borrowing) in the context of the financial and economic situation following the global credit crisis.
Source: Alistair Darling MP (Chancellor of the Exchequer), Mais Lecture on 'Maintaining stability in a global economy', 29 October 2008
Date: 2008-Oct
A report examined the 'Barnett formula', used to allocate public spending between England, Scotland, Wales, and Northern Ireland. Identifiable public spending per head in England was running at £7,535 per annum (2007-08): but in Scotland it was 22 per cent (£1,644) higher, in Wales 14 per cent (£1,042) higher, and in Northern Ireland 30 per cent (£2,254) higher. Such spending gaps were 'impossible to justify' to English taxpayers.
Source: Mike Denham, Unequal Shares: The definitive guide to the Barnett formula, TaxPayers' Alliance (0845 330 9554)
Links: Report | Telegraph report | BBC report
Date: 2008-Sep
A report by a committee of MPs said that government departments had been successful in improving their resource management: but a lack of financial management skills among non-finance staff was a barrier to further progress. The quality, timeliness, and completeness of resource information provided to departmental boards needed to improve in order that boards could make better informed decisions. Only 41 per cent of departments' policy proposals always included a full financial appraisal, and only 20 per cent based policy decisions on a thorough assessment of their financial implications.
Source: Managing Financial Resources to Deliver Better Public Services, Forty-third Report (Session 2007-08), HC 519, House of Commons Public Accounts Select Committee, TSO (0870 600 5522)
Links: Report | CIPFA press release | BBC report | FT report
Date: 2008-Sep
A think-tank report said that disparities in funding across the United Kingdom were becoming an increasing source of tension between the four nations, especially between England and Scotland. It called for the 'Barnett formula' – used to fund the devolved administrations in Scotland, Wales, and Northern Ireland – to be replaced with a more transparent and equitable funding system.
Source: Iain McLean, Guy Lodge and Katie Schmuecker, Fair Shares: Barnett and the politics of public expenditure, Institute for Public Policy Research (020 7470 6100)
Links: Report | IPPR press release | BBC report
Date: 2008-Jul
The government launched the 'operational efficiency programme', designed to achieve greater efficiency savings across public spending.
Source: Operational Efficiency Programme: Prospectus, HM Treasury (020 7270 4558)
Links: Prospectus | Hansard | HMT press release | Personnel Today report
Date: 2008-Jul
The government published guidance on how social policy issues should be taken into account in public procurement decisions.
Source: Buy and Make a Difference: How to address social issues in public procurement, Office of Government Commerce (0845 000 4999)
Links: Guidance
Date: 2008-Jun
A report by a committee of MPs described as 'flimsy' government predictions that central government departments could save £1.4 billion annually through sharing corporate services, such as human resources and finance.
Source: Improving Corporate Functions Using Shared Services, Eighteenth Report (Session 2007-08), HC 190, House of Commons Public Accounts Select Committee, TSO (0870 600 5522)
Links: Report | Personnel Today report
Date: 2008-May
A report by a committee of MPs said that Parliament should have access to the details of private finance initiative deals, to allow it to judge whether the taxpayer was securing good value for money.
Source: Parliament and Government Finance: Recreating financial scrutiny, Second Report (Session 2007-08), HC 426, House of Commons Liaison Select Committee, TSO (0870 600 5522)
Date: 2008-Apr
The government responded to a report by a committee of MPs on the 2007 Comprehensive Spending Review.
Source: The 2007 Comprehensive Spending Review: Government Response to the Committee's First Report of Session 2007-08, Sixth Special Report (Session 2007-08), HC 428, House of Commons Treasury Select Committee, TSO (0870 600 5522)
Links: Response | MPs report
Date: 2008-Mar
A report by a committee of MPs criticized the Treasury and HM Revenue and Customs over poor performance: they had failed to lead by example in areas such as meeting targets and ensuring value for money in their operations.
Source: Administration and Expenditure of the Chancellor's Departments, 2006-07, Seventh Report (Session 2007-08), HC 57, House of Commons Treasury Select Committee, TSO (0870 600 5522)
Links: Report | Guardian report
Date: 2008-Mar