Below is the text of Mr Major’s written Parliamentary Answer on Departmental Budgeting on 7th July 1988.
Mr. David Martin To ask the Chancellor of the Exchequer what progress has been made in implementing the recommendations of the multi-department review of budgeting following the then Chief Secretary’s announcement of 29 April 1986, Official Report, column 371.
Mr. Major Departments were asked to draw up action plans for achieving the four principles highlighted by my predecessor and by the Prime Minister in her foreword to the 1986 report. A report has been prepared which shows that, overall, Departments have made good progress in implementing its recommendations. Thirteen Departments have arrangements in place which meet all four of the principles in respect of all or nearly all of their running costs and programme expenditure. Another 16 have satisfactory arrangements for at least two of the four principles. In a number of Departments further work needs to be done, particularly in the field of output and performance measures, as a contribution to the continuing drive to improve financial management. This work will provide an important contribution to the development of policy and resource frameworks for executive agencies under the arrangements announced by the Prime Minister on 18 February 1988 at column 1149.
I am today arranging for copies of the second report on the implementation of the recommendations of the multi-department review of budgeting to be placed in the Library of the House.