Getting good value for public spending means giving sufficient priority to unflashy but essential tasks such as efficiently maintaining public buildings and replacing obsolete technology, as well as to more eye-catching new projects.
Two recent National Audit Office (NAO) reports demonstrate the problems caused by underinvestment in the physical estate for two essential public services: education and health. In June we reported on the condition of school buildings, concluding: “Following years of underinvestment, the estate’s overall condition is declining and about 700,000 pupils are learning in schools that the responsible body or Department for Education (DfE) believes needs major rebuilding or refurbishment. Most seriously, the DfE recognises significant safety concerns across the estate and has escalated these concerns to the government risk register.”
This week pupils, parents and teachers are experiencing the disruptive impact of addressing those safety concerns with reinforced autoclaved aerated concrete (Raac).
We identified similar problems caused by the lack of a robust long-term programme of building maintenance and replacement in our July report on the government’s New Hospital Programme. The need to tackle Raac in some hospitals is one reason that eight new hospitals planned by 2030 will now come later.
The underlying challenge is that adequately funding responsible capital programmes for our public services leaves less for higher profile projects. Failure to bite this bullet leads to poor value, with more money required for emergency measures or a sticking plaster approach.
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Investing adequately to maximise value for taxpayers and service users is equally vital for IT systems. Recent NAO reports chart how ageing systems are creating problems for service users, such as state pensioners missing out on payments they are entitled to. Outdated technology also acts as a brake on vital innovation in the delivery of frontline services. We welcome the new focus from government on identifying public services where digital transformation, alongside better quality data, can make the biggest difference to service users and taxpayers. Just like buildings, this will require long-term investment to deliver most value.
Given the many pressing demands on public funding in the coming decades, ranging from the UK’s net-zero ambitions to demographic changes, the imperative to get the most from every pound of public money has never been stronger. Embedding a culture of innovation and evaluation is urgent so that small improvements are encouraged and successful ones quickly scaled up. We look for promising opportunities, such as the early impact of Active Travel England in helping local authorities to apply best practice in designing streets to encourage safe and healthy transport and communities, helping to avoid wasted money on ineffective schemes.
Larger-scale innovation will be needed to decarbonise the economy, reduce ill-health and tackle other government priorities. Part of the NAO’s role is to help parliament and the public to understand how well these challenges are being met while maintaining our focus on less glamorous drivers of long-term value for money, such as fit-for-purpose buildings and up-to-date IT.
Raac was an innovation once, a low-cost alternative to traditional concrete that facilitated the huge expansion in public services after the Second World War. It served its purpose for decades but the long-term risks it posed took too long to be properly addressed. Our search for new solutions must be accompanied by robust risk management as well as a commitment to adequately maintain essential public assets.
Gareth Davies is head of the National Audit Office and comptroller and auditor general
