UK Government publishes Operational Efficiency Review
London: 21 April 2009
On the eve of the UK Budget statement for 2009/2010, when the UK Government announced a record breaking public sector borrowing of £175 billion pounds, the UK Government published the (OER).
The OER final report includes the outcome of the UK Governments review of the public sector bodies that operate as a Trading Funds that include the following public sector information holders
Ordnance Survey
- Land Registry
- Met Office
“Box 3.A: Trading Funds Assessment (Reference page 41)
The first phase of the Trading Fund Assessment considered how a number of Government businesses could open up the information they create or hold as a result of carrying out their core public duties. The businesses were Met Office, Land Registry, Ordnance Survey, Companies House, Driver and Vehicle Licensing Agency and UK Hydrographic Office.
Availability of the information produced by these Trading Funds generates opportunities for innovation, added-value and growth in both the wider economy and society. Accurate and easily available information enables the better delivery of public services and increased accountability of government.
The Assessment identified key principles of good practice relating to information produced by all Trading Funds. These principles are:
- information easily available – where possible at low or marginal cost;
- clear and transparent pricing structures for the information, with different parts of the business accounted for separately;
- simple and transparent licences to facilitate the re-use of information for purposes other than that for which it was originally created; and
- clearly and independently defined – with input from customers and stakeholders – core purposes (“public tasks”) of the organisations.
The Office of Public Sector Information will provide enhanced oversight and governance to ensure application of these principles across the Trading Funds that create significant amounts of information.
A new business strategy for Ordnance Survey has been developed (see Box 3.H) which also will ensure easier and simpler access to high-quality information.
Further work on the future business plans and models for specific Trading Funds - as well as consideration of the effectiveness of the Trading Fund model – will now be incorporated into the Operational Efficiency Programme.”
Box 3.E: Land Registry (Reference page 45)
Land Registry maintains and develops a stable and effective land registration system throughout England and Wales, providing the cornerstone for the creation and free movement of interests in land. Giving a state-backed security for title to registered estates and interests in land for the whole of England and Wales, and ready access to up-to-date and guaranteed land information, enables confident dealings in property and security of title. In addition, Land Registry produces property price reports and delivers a range of nonstatutory added-value products and services. Land Registry is committed to providing high quality, cost-effective services which are delivered promptly to all customers.
A review of the business model was undertaken as part of the OEP. This concluded that in light of current market conditions and recognising the need to retain responsibility for the creation, recording and guaranteeing of title to land within Government, the following improvements to the operating framework of the business have been identified and will be delivered;
realising significant efficiency savings through a programme which includes estate and operational rationalisation and market testing of support functions that will result in a more streamlined, resourceful organisation;
- developing opportunities for the provision of wider commercial services and products;
- identifying synergies with the functions and data requirements of other public sector bodies with a view to achieving efficiency improvements through greater collaboration; and
- exploring opportunities to accelerate these initiatives through joint ventures and/or outsourcing of activities to third party providers.
A further update is planned at the 2009 Pre-Budget Report.”
Box 3.F: Met Office (reference page 46)
The Met Office is a world-leading provider of weather forecasts and climate change modelling and advice to the general public, specialist customers throughout the public sector and an increasing number of private sector customers.
It is essential that the Met Office's unified approach to short, medium and long term forecasting and climate modelling, which is the most efficient and sophisticated in the world, is preserved. The Met Office also performs a number of key government roles, especially in international data collaboration and UK representation. In order to maintain the quality of its services it will require long-term investment and the freedom to develop its operations. There remains potential to expand commercial operations at the Met Office beyond those already provided, possibly through the introduction of private capital in some areas.
Over the coming months the project team will:
- work closely with the MOD as the owner department and HM Treasury to identify improvements to its business model, ownership structure and financial framework in order to reduce the administrative burden, maximise its development and to fully exploit the market opportunities open to it;
- work with other public sector bodies to achieve efficiency improvements through greater collaboration or transfer of functions;
- explore increased commercial activities, for example weather warnings to industry and helping business understand the impact of climate change;
- seek opportunities for private sector partners to develop specific services to complement the Met Office's business; and
- maximise operational freedoms and reduce bureaucracy in the interface between the Met Office and the MOD.
Box 3.H: Ordnance Survey (Reference page 48)
Ordnance Survey collects, maintains and publishes high quality and up-to-date geographical information for the whole of Great Britain. Ordnance Survey provides data and services to customers both directly and indirectly through its network of commercial partners. The Government is committed to stimulating innovation in the geographical information market, increasing competition where it would be beneficial to consumers and to making geographical data and services more easily available.
The OEP has concluded so far that Ordnance Survey needs to be more customer-focused and commercially driven. The Government is therefore publishing a new commercial strategy for the Ordnance Survey on their website. The new strategy balances the requirement to maintain the highest quality standards with the need to significantly enhance ease of access to geographic data and services for both commercial and non-commercial use.
The new strategy seeks to equip Ordnance Survey to thrive in and better support competition and innovation in a wider geographical information market that is being transformed by advances in technology. It is a significant and ambitious programme of change. The Government has set key milestones for delivery in 6 and 12 months’ time and beyond, as well as a process for independent review and challenge of progress. If sufficient progress is not made to promote competition and innovation in these timescales, the Government will consider further reforms. Opportunities to accelerate the delivery of initiatives through introducing further commercial experience and capabilities will be fully explored over the coming year.
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