Government back-office transformation programme risks failing to deliver billions in savings

The government’s flagship programme to modernise back-office services across Whitehall is at risk of failing unless ministers urgently overhaul its delivery, according to a damning report from the Public Accounts Committee (PAC).

The cross-party committee warns that the Government Shared Services Strategy, which is intended to generate billions of pounds in efficiency savings by consolidating functions such as HR, finance and procurement across departments, is facing “unexplained delays”, weak governance and an inability to demonstrate whether it is delivering value for money.

MPs say the Cabinet Office “continues not to have a grip on managing the strategy” and is calling for a fundamental review of the programme before further investment is committed.

Sir Geoffrey Clifton-Brown MP, chair of the Public Accounts Committee, said: “Government’s Shared Services Strategy has the potential to deliver significant savings and improve the way departments operate, but our report finds a programme beset by delays, weak oversight and a worrying lack of clarity over whether it is achieving its objectives.”

He added that unless government changes course, there is a real risk that the programme will fail to deliver the benefits originally promised.

MPs question delivery and oversight

The committee raises concerns that government has not established clear accountability for delivering the programme or measuring its success.

According to the report, the Cabinet Office has not demonstrated sufficient oversight of progress across departments, while delays to implementation have undermined confidence that expected savings will be realised within planned timescales.

The PAC also questions whether government has robust evidence that the strategy is improving efficiency, warning that without better data and stronger programme management it will be difficult to determine whether public money is being well spent.

The PAC’s report echoes concerns raised by the National Audit Office earlier this year, which warned that the strategy was unlikely to deliver its full benefits unless governance, interoperability and departmental commitment improved. As previously reported by Think Digital Partners, the watchdog found there was “no single owner in the centre of government with a clear mandate to secure departmental onboarding” and warned the programme faced “a real risk” of not being delivered on time or within budget.

The PAC is calling on government to revisit all aspects of the Shared Services Strategy, including governance arrangements, programme milestones and how benefits are measured. It says ministers should establish clearer accountability, improve transparency around delivery and develop more robust measures of whether the programme is achieving its intended outcomes.