Public sector statistics need to improve

Monday, 31 January 2005 12:00 AM

An independent report into the statistical measurement of the UK's public services has concluded that the system needs to be more accurate and should start to measure quality.

Public sector statistics have become major political weapons in recent years. Labour has sought to say that investment has improved services, while the Conservatives claimed it has been wasted and have cast doubt on official statistics.

Today's report from Sir Tony Atkinson, commissioned by outgoing National Statistician Len Cook in December 2003, offers 54 recommendations for change. But, it also stresses that the Office of National Statistics (ONS) has been moving in the right direction by changing its statistical base to revolve around outputs.

Speaking today, Sir Tony, said: "Public accountability requires measures of what is achieved by spending on public services.

"We cannot simply assume that outputs equal inputs in such a major part of the economy. ONS has taken the right route, but needs to develop further, under a principled framework."

He points out that with the public sector worth around a fifth of the UK's GDP the 1995-2003 growth rate would have been about 0.25 per cent a year higher if the old input measure had been used. Sir Tony added that the UK measure is better than the US one, which still uses inputs, saying: "we don't capture the value of services to people who use them if we only count what is spent."

Sir Tony also called for the quality of measurement to improve, saying: "Current indicators have been too limited in their coverage of activities, have been aggregated at too high a level and have often used data from England, not the whole United Kingdom. In some cases they have been misclassified or affected by changes in the machinery of government. They often use information with a substantial time lag."

He added that measurements of government output should use parallel methodology to that used in the private sector and also take account of quality changes. But he admitted that measuring quality could prove "elusive".

Responding to the report, the CBI's director of public services, John Williams, said it supported any attempt to "lift the fog of numbers" in measuring the public sector's performance.

But he added: "The challenge remains for the public sector to demonstrate that the massive investment is delivering pound-for-pound benefits for taxpayers and service users. Business alone has contributed an extra £44.3bn since 1997, and remains to be convinced that it has received value for money."

Both the Conservatives and the Liberal Democrats have suggested that the gathering of statistics should be turned over to a body fully independent of government.

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