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The first proposals to modernize the Thameslink route and increase capacity were developed by a succession of rail industry sponsors but nothing much happened until the Department for Transport became sponsor in 2005. The Department has delivered the first phase of the infrastructure project under budget and on time. The other two aspects of the programme are going less well. The procurement of new trains through a £1.6 billion PFI deal has taken over three years longer than expected. And the timetable and approach for letting the new franchise have been revised. The planned completion date has been put back to 2018. But meeting the timetable for delivering the new trains will be very demanding and risky. The Committee is also sceptical about using PFI to fund this project. It is alarming that the Department compared the PFI option against only one other private sector option and did not construct a public sector comparator to understand better the relative costs, risks and rewards of choosing a PFI funding route over a public one. Another source of worry is the small size of the Department's core Thameslink team - just five people for a programme of this size and complexity. The impression that there is a scarcity of these skills is reinforced by the apparent need to move the key civil servant leading the Thameslink team, the man whose experience, skills and continuity have been crucial to the delivery of the programme, over to the High Speed 2 team
The Whole of Government Accounts for 2011-12 presents the combined financial activities of some 3,000 organisations. It provides vital data on which Government needs to act. Key issues have been identified, such as the £19.4 billion liability for clinical negligence claims. But it is frustrating to see other issues seemingly ignored in long-term policy making and spending decisions. In one year, the public sector was defrauded of over £20 billion and the tax gap rose to £35 billion. The financial liabilities for dealing with nuclear waste also keep growing. There is room for improvement in the document itself and how it is used. Users find it hard to understand, for example, why the Government debt and deficit highlighted in the WGA differ from those reported in the ONS's National Accounts. Also, by changing definitions in its commentary published alongside the WGA, the Treasury makes it difficult to track changes over time. The Treasury's introduction in the commentary of a new concept of so-called 'direct' expenditure leaves out key costs such as the interest paid on the National Debt. The publicly owned and controlled bodies - such as Network Rail and the taxpayer owned banks - are still being excluded, in defiance of normal accounting rules. The usefulness of the WGA is also being limited by the length of time it takes to produce the document and by poor quality data from some of the bodies. The accounts have again been qualified over the completeness, timeliness and accuracy of the information supplied for schools and academies
Nearly one fifth of consultant posts in emergency departments were either vacant or filled by locums in 2012. Neither the Department nor NHS England have a clear strategy to tackle the shortage of A&E consultants and there is too much reliance on temporary staff to fill gaps. The Committee raised the possibility of paying consultants more to work at struggling hospitals. Greater use in A&E of consultants from other departments could also be made, or mandate that all trainee consultants spend time in A&E, or make A&E positions more attractive through improved terms and conditions. The slow introduction of round-the-clock consultant cover in hospitals - which will not be in place before the end of 2016-17 - is also having a negative impact. More people die as a result of being admitted at the weekend when fewer consultants are in A&E. Changing this relies on the British Medical Association and NHS Employers negotiating a more flexible consultants' contract, and neither the Department nor NHS England has direct control over the timescale or details of these negotiations. Hospitals, GPs and community health services all have a role to play in reducing emergency admissions - but financial incentives to make this happen are not in place. While hospitals get no money if patients are readmitted within 30 days, there are no financial incentives for community and social care services to reduce emergency admissions. Both the Department of Health and NHS England struggled to explain to us who is ultimately accountable for the efficient delivery of local A&E services
The report Access To Clinical Trial Information And The Stockpiling Of Tamiflu (HC 295) examines two separate but connected issues; the routine withholding of clinical trial information from doctors and researchers, and the effectiveness of stockpiling of Tamiflu during an influenza pandemic. The full results of clinical trials are being routinely and legally withheld from doctors and researchers by the manufacturers of medicines. The ability of doctors, researchers and patients to make informed decisions about treatments is being undermined. Regulators and the industry have recently made proposals to open up access, but these do not cover the issue of access to the results of trials in the past which bear on the efficacy and safety of medicines in use today. Research suggests that the probability of completed trials being published is roughly 50%. Trials which give a favorable verdict are about twice as likely to be published as trials giving unfavorable
In the three years to December 2012, the BBC gave 150 senior managers severance payments totalling £25 million. The BBC paid more salary in lieu of notice than it was obliged to in 22 of the 150 severance payments for senior managers in the three years to December 2012, at a cost of £1.4 million. It is unacceptable for the BBC, or any other public body, to give departing senior managers huge severance payments that far exceed their contractual entitlements. Some of the justifications put forward by the BBC were extraordinary. The Committee welcomes the changes that the BBC's Director General, Lord Hall, has made to cap severance pay. Recommendations include: the BBC should remind its staff that they are all individually responsible for protecting public money and challenging wasteful practices; to protect licence fee payers' interests and its own reputation, the BBC should establish internal procedures that provide clear central oversight and effective scrutiny of severance payments; the BBC Executive and the BBC Trust need to overhaul the way they conduct their business, and record and communicate decisions properly; the BBC Trust should be more willing to challenge practices and decisions where there is a risk that the interests of licence fee payers could be compromised; the BBC Trust and the BBC Executive need to ensure that decision-making is transparent and accountability taken seriously, based on a shared understanding of value for money, with tangible evidence of individuals taking public responsibility for their decisions.
There is at present around £46 billion of outstanding student loans on the Government's books, and this figure is set to rise dramatically to £200 billion by 2042 (in 2013 prices). By 2042 there will be an estimated 6.5 million borrowers of student loans. At the same time estimates for the amount of loans that will not be repaid are also rising and the Government assumes that 35-40% of outstanding loans will never be repaid. That is some £16 billion to £18 billion on the current debt of £46 billion and £70 billion to £80 billion on the estimated value of student loans by 2042. The Department for Business, Innovation & Skills (the Department) is not doing enough to secure value for money from its collection arrangements. The Department is unable to accurately forecast student loan repayments, and does not have a sufficient understanding of the likely future cost of non-repayment to the taxpayer. The Student Loans Company is not doing enough to ensure that it identifies and collects all the repayments due, given the substantial size of the financial assets involved, and will need to demonstrate value for money from the proposed sale of the student loans book.
In pursuing unpaid tax, HMRC has not clearly demonstrated that it is on the side of the majority of taxpayers who pay their taxes in full. Last year the Department collected less tax in real terms than it managed to collect in 2011-12. This was despite the stated ambition to crack down on tax avoidance. The tax gap as defined by HMRC did not shrink, but in 2011-12 grew to £35 billion. Furthermore, this figure does not include all the tax revenue lost. HMRC pursues tax owed by the smaller businesses but seems to lose its nerve when it comes to mounting prosecutions against multinational corporations. It predicted that it would collect £3.12 billion unpaid tax from UK holders of Swiss bank accounts and this figure was built into budget estimates, but in 2013-14 it has so far secured just £440 million. HMRC aims to make the UK more attractive to business but the incentives to international corporations may also enable them to avoid tax. HMRC needs to strike the right balance between support and enforcement. The implementation of the Real Time Information system has been encouraging overall though some small businesses are continuing to struggle. It is of concern that HMRC is planning from April 2014 to fine companies even though some face continuing challenges. The successful implementation of Universal Credit depends on RTI continuing to work properly but the system does not have full disaster recovery arrangements. System failures could have serious consequences for payments to individuals
The Border Force's 7,600 staff operate immigration and customs controls at 138 air, sea and rail ports across the UK. It has a budget of £604 million for 2013-14, but is facing cuts. It has had to prioritise passenger checks at the expense of its other duties thereby weakening security at the border by neglecting other duties, such as the examination of freight for illicit goods, and checks in Calais on lorries to detect concealed illegal entrants. It was not able to meet and check up to 90,000 private planes or private boats arriving in the UK each year, leaving the UK border vulnerable and raising issues about resourcing and how priorities are set. The Border Force acknowledged that it had missed 8 of its 19 seizure and detection targets. Recommendations: set out how it will ensure that it delivers its full range of duties across all ports to provide the required level of national security; demonstrate that it can deliver its workload within the resources available; must address the gaps in the data it receives on people arriving in the UK, and the existing data needs to be cleansed to increase the quality, reliability and usefulness of the intelligence generated; set out how, and by when, it will have in place the functional IT systems it needs to underpin the security of the UK border; senior management must provide the organisation with a clear sense of purpose and tackle those barriers which inhibit the flexible and effective deployment of its staff.
This report summarises the key areas of the Committee's work over the past five years. It draws out the areas where progress has been made and where their successors might wish to press in future. The Committee has assiduously followed the taxpayer's pound wherever it was spent. Since 2010 they held 276 evidence sessions and published 244 unanimous reports to hold government to account for its performance. 88% of their recommendations were accepted by departments. In many cases they successfully secured substantial changes, for example with the once secret tax avoidance industry. They secured consensus from government and from industry that private providers of public services do have a duty of care to the taxpayer, and in pushing the protection of whistleblowers further up the agenda of all government departments. By drawing attention to mistakes in the Department for Transport's procurement of the West Coast Mainline, more recent procurements for Crossrail, Thameslink and Intercity Express have all benefited from more expert advice and a more appropriate level of challenge from senior staff. After discovery in 2012-13 that 63% of calls to government call centres were to higher rate telephone numbers, the Government accepted our recommendation that telephone lines serving vulnerable and low income groups never be charged above the geographic rate and that 03 numbers should be available for all government telephone lines. They also secured a commitment to close large mental health hospitals.
In this report the Public Accounts Committee examines DCLG and DWP's programmes to help families facing multiple challenges. In 2006, the Government estimated that there were 120,000 families in England facing multiple challenges, such as unemployment and poor housing, crime and antisocial behaviour. The estimated cost to the taxpayer of providing services to support these families is £9 billion a year, of which £8 billion is spent reacting to issues and £1 billion in trying to tackle them. In 2012, DCLG and DWP each introduced separate programmes to help these families. DCLG's Troubled Families programme, with a central government budget of £448 million, aims to 'turn around' all 120,000 families by May 2015. DWP's Families with Multiple Problems programme, with a budget of £200 million, seeks to move 22% of those joining the programme into employment by March 2015. There was no clear rationale for the simultaneous introduction of two separate programmes, which focused on addressing similar issues. The integration of the programmes at the design phase was poor, leading to confusion, and contributing to the low number of referrals to the DWP's programme. But the good practice evident in DCLG's Troubled Families programme, demonstrates how central and local government agencies can work together effectively. Data sharing is critical to identifying the families most in need of the support available. Both departments should publish, alongside details of the programmes' progress against their respective targets, details of the wider benefits and financial savings that they have identified.