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The Public Sector in Scotland Implementing the Atkinson Review Recommendations 31 January 2006 Alwyn Pritchard UK Centre for the Measurement of Government Activity Atkinson Review • Set up by National Statistician • … “to advance methodologies for the • • • • • measurement of government output” … also covering productivity and inputs Think of: GDP (Expenditure) -> General government final consumption expenditure Money: purchases made to provide services Volume: services produced (21% of GDP) But GDP (Output) follows same principles Government services in the National Accounts: a short history • Up to late 1990’s, outputs = inputs • Then rules changed: measure what people • • • • receive 1998: add together treatments in hospitals, numbers at school ONS quick to implement new rules (not a legal obligation until 2006) Spending departments showed little interest, ONS worked alone Public service performance was not the high profile issue it is now Government productivity • 2001: work began on productivity measurement – • • • • • natural offshoot If outputs grow faster than inputs, productivity change is positive Public services performance had a higher profile now Others were also developing ways of measuring performance People wanted to hear a coherent story No longer just a national accounts issue Atkinson Review • Set up late 2003, reported early 2005 • Broadly supported ONS’s goals and approach • Provided intellectual underpinning • Recommended a large programme of work • Invented triangulation? • Brought topic to the attention of wider public • Led quickly to better output measures: – Health: not total number of hospital operations but a cost weighted total: op costing £7000 is 10 times more output than the £700 op. Achievements to date • Departments are actively participating: – better data on activity and spending flowing to ONS – developing and publishing methodology proposals • UKCeMGA Productivity papers series, covering major functions • Atkinson: a policy issue as much as a national accounts one • Atkinson ideas becoming basis of performance management Still to do • Greater understanding of these issues in • • • • • Scotland, Northern Ireland, Wales, and More active participation and interest, based on good quality research Achieve good results coverage across all functions of devolved administrations Tackle difficult areas: justice, courts Measuring quality change is a major challenge Contribute to a well informed discussion on what is achieved through government spending Keys to success so far • Support at the highest levels of Government • Collaboration with those who deliver services • Academic research programme feeds into work • Independent Advisory Board for UKCeMGA • Culture of openness The Public Sector in Scotland Implementing the Atkinson Review Recommendations 31 January 2006 Alwyn Pritchard UK Centre for the Measurement of Government Activity