The National Audit Office (NAO) says changes to the public sector’s operational capabilities and workforce are needed to manage and improve services in the face of rising demand for public services and stretched resources. The public spending watchdog also says beefing up public sector leadership and management capability is fundamental to improvement. 

The landscape for delivery of public services faces new challenges, a new NAO report warns. In addition to new and changing levels of demand for services such as responding to seasonal patterns and unforeseen crises, there is a need to improve productivity and reduce costs.

Getting operational capability right means better quality services, more output for the same or lower cost, and improved outcomes for the people who rely on them, the NAO says. To that aim, it has highlighted four key capabilities government organisations need for smarter delivery:

• Taking a whole-system approach: Dealing with complexity and uncertainty by understanding how the different parts of the system work, what service users’ needs are, and how processes connect. 
• Understanding and dealing with demand: Designing and running services in a way that provides people with what they want, when they want it, and getting it right the first time. 
• Using information to improve: Working to understand how services are performing, and use that information to decide what to change, why, and how. 
• Having a systematic approach to innovation and improvement: Knowing where problems happen or where there are opportunities to improve. 

This year, the government is expected to spend over £450bn on the day-to-day running of public services – the equivalent to 35% of public spending. Departmental delivery plans have identified total annual efficiency gains of almost £14bn by 2028/29, the final year of the Spending Review period, through a combination of improved outcomes and reduced costs. Most departments developed efficiency plans to deliver at least 3% efficiency gains by 2028/29, with some delivering over 8%. 

However, the 516,455 (full-time equivalent) civil servants the government now employs is the highest level in almost 20 years and marks a decade of virtually uninterrupted growth in headcount since 2016, says the Institute for Government. Although much of this expansion has been driven by pressures on frontline services, this does not justify the extent or duration of the expansion, the think tank warns. 

This latest report from the NAO draws on case studies including the Home Office, DVLA and NHS to understand how departments are innovating, adapting and improving the way public services are delivered. 

Sir Geoffrey Clifton-Brown, Chair of the Public Accounts Committee, said: “The Committee of Public Accounts has reported time and time again on the impacts that poor service delivery has on the citizens that use them, as well as costing the taxpayer billions of pounds. Today’s NAO report highlights the lessons government organisations must learn for smarter delivery, including the importance of resilience to meet changes in demand resulting from unexpected shocks, which are becoming far more frequent. 

“Despite challenging operational circumstances, there are examples of organisations innovating and making improvements to how services are delivered. However, it is clear that better cooperation across government and use of data can often improve what would otherwise be difficult services to deliver.”

Clifton-Brown also said the Operational Delivery Profession (ODP) also has a key role in helping to build this capability across government. The ODP is the largest profession in the UK Civil Service and plays a vital role in the day-to-day delivery of public services. It has over 290,000 members, more than half of the entire civil service workforce. ODP’s roles span a wide range of services, including processing benefit claims, issuing passports, managing prisons, handling planning applications and working at the UK border. 

The government says ODP’s new strategy recognises that the skills required by operational delivery professionals are evolving. In particular, people need to know how to use that expertise in a digital service operating context – for example using artificial intelligence and developing user-friendly apps.

Alison Ring, ICAEW Director of Public Sector and Taxation, said: “Smarter public service delivery needs investment in skills and training and the sharing of best practice across government. The National Audit Office shines a spotlight on some of the positive outcomes that can be achieved where a real investment is made in developing and supporting staff.”