Dear Mike
Review on “Ensuring Confidence in the Economic Statistics Classification Process”
We have completed our quality-focused review of the economic statistics classifications process. This review is part of our Spotlight on Quality: Assuring Confidence in Economic Statistics programme, which aims to provide enhanced assurance of the UK’s economic statistics.
Classification decisions are important because of their impact on deficit and debt figures, which in turn have implications for fiscal rules and government spending decisions and government departments or agencies with Managing Public Money responsibilities.
Our review found users had overall confidence in the classifications process and that there was appreciation of the diligence of the Economic Statistics Classification Team that manages classification cases; and respect for the “referee” role of the Economic Statistics Classifications Committee, which makes classification recommendations.
Through our work we have identified six requirements (see Annex) to ensure that the classifications process continues to make good-quality decisions. These comprise: maintaining capability; ensuring ONS has the relationships it needs for seeking advice and for discussing international standards; and taking steps to continually improve the communication and implementation of its classification decisions. Many of these requirements build on existing good work, especially when it comes to communication where users noted and appreciated recent improvements to key outputs like the Public Sector Classification Guide.
I expect ONS to published a plan to address requirements by October 2024. Implementing these actions will ensure that this underpinning process continues to meet the standards of the Code of Practice for Statistics.
We thank you and your team for engaging with us during our review.
I am copying this letter to Grant Fitzner, Director of Macroeconomic and Environmental Statistics and Analysis; Jessica Barnaby, Deputy Director, Macroeconomic and Environmental Statistics and Analysis; Craig McLaren, Deputy Director, Economic Statistics Production and Analysis; Tom Orford, Head of Profession for Statistics, HM Treasury; Sarah Geisman, Head of Classifications, HM Treasury.
Yours sincerely
Ed Humpherson