Oral Answers to Questions
Debate between Richard Bacon and Philip Hollobone(1 year, 3 months ago)
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Mr Richard Bacon (South Norfolk)
In line with its statutory duties, the Public Accounts Commission sits formally to discuss the NAO’s main supply estimate, taking evidence from the Comptroller and Auditor General and other NAO officials. On 1 March last year, the Commission approved the NAO’s supply estimate for the financial year that will shortly end, and it also approved an adjustment in November to allow the NAO to enter into a lease in Newcastle. On 8 March this year, the Commission is due to consider the NAO’s supply estimate for the forthcoming financial year, which will end in March 2024.
Mr Hollobone
The National Audit Office does superb work with penetrating analysis of public expenditure, but it now covers the greatest ever number of public sector organisations. Will the Public Accounts Commission take that into account when arriving at the estimate for next year?
Mr Bacon
Yes, it will. The National Audit Office is affected by inflation, which is now at 9.2%, as well as other cost pressures relating to its statutory role, including the greater work required by updated international audit standards and the fact that when more public bodies are created, they need to be audited. The Commission also notes that the NAO is competing against private sector audit firms in recruiting and retaining staff, and needs to take that into consideration. The Commission will discuss those issues in more detail when the NAO presents its main estimate on 8 March.
Oral Answers to Questions
Debate between Richard Bacon and Philip Hollobone(1 year, 5 months ago)
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Mr Richard Bacon (South Norfolk)
The National Audit Office’s report on road enhancements has recently been published and it is excellent. The Public Accounts Commission itself, in line with its statutory duty, has no plans to examine the report, but many of the NAO’s reports are taken up by the Public Accounts Committee and while, of course, it is a matter for the PAC to determine its own programme, I will draw the interest of my hon. Friend to the Chair of the PAC.
Mr Hollobone
Delays to projects in road investment strategy 2 primarily because of development consent difficulties have meant that fewer road projects have been delivered than planned and at a higher cost. Should the commission study the report, may I urge my hon. Friend to examine the potential negative impact on the next road investment strategy—RIS 3—of future road projects being shelved because of hold-ups and cost pressures in RIS 2?
Mr Bacon
In its September 2020 delivery plan, National Highways expected that it would spend £5.5 billion in the third road strategy on projects approved since 2020. Since then, this has increased to £11.5 billion largely because of project and planning delays. Taxpayers may well feel scandalised that they are paying more money and getting fewer road enhancements. I know that my hon. Friend has a particular interest in the proposed junction 10a of the A14 east of Kettering and I urge him to consider pressing his case with Ministers as I know he was doing as recently as last week.
Oral Answers to Questions
Debate between Richard Bacon and Philip Hollobone(1 year, 5 months ago)
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Mr Philip Hollobone (Kettering) (Con)
Mr Richard Bacon (South Norfolk)
The majority of National Audit Office reports are considered by the Public Accounts Committee. Earlier this month, the Committee took evidence on the NAO’s recent report “Introducing Integrated Care Systems” and will report on that in due course. My hon. Friend may be interested to know that, today, the National Audit Office has published a report on “Managing NHS backlogs and waiting times in England”. The PAC expects to take evidence on that on 28 November.
Mr Hollobone
In 2019-20, the NHS England budget was £124 billion, which has increased this year by 23% to £152 billion. Yet, despite that record extra funding, so far this year the NHS has treated 656,000 fewer patients than during the same period in pre-pandemic 2019—a drop of 5%. Is it the National Audit Office’s view that the NHS has a productivity problem?
Mr Bacon
Yes, it is. Indeed, the report published by the NAO today states:
“The NHS now has a problem with reduced productivity.”
NHS England has estimated that, in 2021, the NHS was about 16% less productive than before the pandemic. Some of that, of course, relates directly to the pandemic, but NHS England is also examining other potential causes, including reduced willingness to work overtime. Some of NHS England’s new initiatives such as surgical hubs and the transformation of out-patient services are intended to produce greater productivity. No doubt the National Audit Office will want to examine that in due course.
Oral Answers to Questions
Debate between Richard Bacon and Philip Hollobone(2 years, 4 months ago)
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Mr Philip Hollobone (Kettering) (Con)
Mr Richard Bacon (South Norfolk)
In November, the National Audit Office produced an important report examining the financial sustainability of schools in England, which complemented its report on school funding in England in July 2021. The Government will respond to the expected Public Accounts Committee report on school financial sustainability after it is published.
Mr Hollobone
I welcome the Public Accounts Committee’s scrutiny of the financial sustainability of schools. This is an important report by the National Audit Office, and it shows that 22% of academy trusts had reserves equivalent to a fifth or more of their annual income, but on the other side of the equation, 27% of maintained secondary schools were in deficit. Does this not need to be investigated?
Mr Bacon
It is very possible that it does. Most maintained schools and academy trusts have been in surplus, but there have been significant pressures on some maintained secondary schools. As my hon. Friend says, a sizeable minority of academy trusts are building up substantial reserves, meaning that they are spending less than their annual income on their pupils. What is done about that is a policy question and thus a matter for Government, rather than for the National Audit Office.
Oral Answers to Questions
Debate between Richard Bacon and Philip Hollobone(2 years, 9 months ago)
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Mr Richard Bacon (South Norfolk) (Con) [V]
The National Audit Office produced an important report recently considering how effectively central Government and local authorities in England are collaborating on net zero. The report emphasised the need for clear roles and responsibilities and for ensuring that local authorities have the right resources and skills to tackle net zero. The question of when the Government will respond is a matter for Government, but I can tell my hon. Friend that my right hon. Friend the Member for Ludlow (Philip Dunne), the Chairman of the Environmental Audit Committee, told me this morning that his Committee will be taking evidence on this National Audit Office report on Wednesday 8 September.
Mr Hollobone
The National Audit Office report concludes that there are serious weaknesses in the Government’s approach to working with over 350 local councils in England on decarbonisation owing to a lack of clarity on the council’s overall roles, piecemeal funding and defuse accountabilities. Will my hon. Friend encourage the Public Accounts Committee to also scrutinise the Government’s response to this important report when it is eventually published?
Mr Bacon
As my hon. Friend will know, the Public Accounts Committee approves the NAO’s strategy and budgets and does not involve itself in individual reports, but he will also know that the National Audit Office report recommends that central Government carry out an analysis of the net zero funding available to local authorities, and it has highlighted that, despite the budget available going from £74 million in 2019-20 to £1.2 billion in 2020-21, the approach remains fragmented, so I hear what my hon. Friend says.
Oral Answers to Questions
Debate between Richard Bacon and Philip Hollobone(3 years, 3 months ago)
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Mr Philip Hollobone (Kettering) (Con)
Mr Richard Bacon (South Norfolk) [V]
The National Audit Office produced an important report examining the Ministry of Defence’s assessment of the affordability of the equipment plan for 2020 to 2030 and the management of equipment expenditure. It is the latest annual update on the financial pressures that the Ministry of Defence faces in developing its military capabilities. The Government will respond to the expected Public Accounts Committee report on the subject after it is published.
Mr Hollobone
In its devastating report, the NAO finds that the equipment plan
“remains unaffordable for the fourth successive year”,
that the budget gap is between £7 billion and £17 billion and that the MOD
“continues to make over-optimistic and inconsistent judgements when forecasting costs.”
What specific parliamentary scrutiny would my hon. Friend encourage to force the Government to address these very serious issues?
Oral Answers to Questions
Debate between Richard Bacon and Philip Hollobone(3 years, 7 months ago)
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Mr Richard Bacon (South Norfolk) [V]
The National Audit Office produced an important report in June, examining the Ministry of Defence’s management of carrier strike and how it is addressing the risks involved in achieving the full capabilities of the carrier strike group. My hon. Friend will know that the Public Accounts Commission approves the strategy and the budget for the NAO but does not involve itself in specific reports due to the statutory independence of the Comptroller and Auditor General, but we are interested to see that the work of the National Audit Office does meet Parliament’s needs.
Mr Hollobone
The Crowsnest radar system is 18 months late. The three crucial new support ships will not be ready until the end of the decade. Only 48 of the 138 Lightning jets have been ordered, and the MOD has no idea about the lifetime costs of this programme. What can my hon. Friend do to ensure full parliamentary scrutiny of the National Audit Office’s superb report, so that the MOD’s handling of this programme can be comprehensively examined?
Mr Bacon
My hon. Friend raises the question of the progress, or lack of progress, made around issues such as the radar system and developing the support ships required. He will be pleased to know that the Public Accounts Committee recently announced formally that it will take evidence on the carrier strike report from the National Audit Office during the month of September.