Select committee says Treasury exerts too much power over Whitehall

Article appeared on Evening Standard web site.

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Chancellor Gordon Brown exerts too much power over the rest of Whitehall and his department is not being held fully to account for its work, a Commons watchdog body said today.

The Treasury, in checking what other Government departments are doing, interferes too much, acting as both judge and jury over other ministers' work.

There should also be a more "strategic view" of the British tax system and better scrutiny of the impact of taxes on the economy, today's Treasury Select Committee report states.

"We firmly believe that in the areas of tax policy, the Treasury could do better," it concludes, calling for a more "hands-on" approach by both ministers and officials.

Their eight-month long investigation of the Treasury points to the recent controversy over Inland Revenue proposals for countering tax avoidance, which have hit small businesses hard, and the review of double tax relief for companies, as problems pointing to the need for action.

They also want to see more openness from the Treasury, spelling out that it has a duty to Parliament to provide "helpful, timely answers" to questions from MPs. The influential committee did find aspects which were praiseworthy, describing it as a world leader in bringing in reforms of budgeting, and the Private Finance Initiative.

But it says the Treasury exerts too much power over the rest of Whitehall, by scrutinising how other government departments meet their targets under the Public Service Agreements.

"We are in no doubt that public expenditure should be spent as efficiently and effectively as possible and that the Treasury has a major obligation to ensure this.

"It is important, however, that once expenditure priorities have been set, departments are left with the task of detailed delivery."

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David Hopkins

Webtastic Ltd