The Public Sector in Scotland Implementing the Atkinson Review Recommendations

1. The Public Sector in Scotland Implementing the Atkinson Review Recommendations 31 January 2006 Alwyn Pritchard UK Centre for the Measurement of Government Activity

2. 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

3. 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

4. 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

5. 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.

6. 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

7. 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

8. 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

9. The Public Sector in Scotland Implementing the Atkinson Review Recommendations 31 January 2006 Alwyn Pritchard UK Centre for the Measurement of Government Activity