4 Underspend
19. The Committee's report on last year's Annual
Report stated that we would continue to monitor progress on reducing
the Department's underspends.[19]
The underspend in 2001/02 was 14.2%; this was reduced to 10.5%
in 2002-03 and ODPM aim to make an improvement of five percentage
points.[20] This was
said to be a "pretty challenging target."[21]
Underspends are not distributed equally across ODPM programmes.
They were particularly significant in certain housing and regeneration
programmes.[22] We were
also told by the director of Corporate Strategy and Resources,
Peter Unwin, that:
"Because of the very successful Spending
Review Settlement that we got in 2002, the money we have available
this year is some 33-34% higher than the amount we spent last
year. Spending that is going to be a challenge, and spending it
well." [23]
20. We welcome the reduction in
ODPM's underspend, but it still remains too large. We expect the
ODPM to set a more challenging target to reduce underspends in
total and set a level that each individual programme area must
not exceed. This combined with the view that spending additional
funding will be a 'challenge' will not help ODPM achieve the best
possible settlement from the 2004 Comprehensive Spending Review.
19 Departmental Annual Reports and Estimates 2002,
ODPM: Housing, Planning, Local Government and the Regions Committee,
2002-03, HC 78-I Back
20
Q292 Back
21
Q193 Back
22
Written answer from ODPM 59 Back
23
Q193 Back
|
