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UK policymaking 'jeopardised by rubbish official statistics' UK policymaking 'jeopardised by rubbish official statistics'
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Andrew Tyrie, chairman of the Treasury select committee, has called for sweeping changes to how the UK produces official statistics to improve the quality of economic data. Andrew Tyrie, the chairman of the Treasury select committee, has called for sweeping changes to how the UK produces official statistics to improve the quality of economic data.
Chancellor George Osborne should use March’s budget to launch a shakeup of the Office for National Statistics (ONS), urged Tyrie, who recently criticised the body for falling behind its international peers and jeopardising policy decisions with “rubbish” statistics.Chancellor George Osborne should use March’s budget to launch a shakeup of the Office for National Statistics (ONS), urged Tyrie, who recently criticised the body for falling behind its international peers and jeopardising policy decisions with “rubbish” statistics.
Tyrie also urged Sir Charlie Bean, the former Bank of England deputy governor, to complete his final report for government into the quality of UK economics statistics in time for the 16 March budget.Tyrie also urged Sir Charlie Bean, the former Bank of England deputy governor, to complete his final report for government into the quality of UK economics statistics in time for the 16 March budget.
The chair of the cross-party committee of MPs is worried that ministers, the public and Bank of England policymakers are having to work with statistics tarred by poor data collection and production.The chair of the cross-party committee of MPs is worried that ministers, the public and Bank of England policymakers are having to work with statistics tarred by poor data collection and production.
“Numbers matter – no doubt the forthcoming EU referendum will illustrate the point,” he said alongside the release on Monday of new suggestions for an ONS overhaul.“Numbers matter – no doubt the forthcoming EU referendum will illustrate the point,” he said alongside the release on Monday of new suggestions for an ONS overhaul.
As part of his enquiries, Bean had asked the Treasury committee for ideas on how to improve public scrutiny and oversight of data collection. Tyrie has written back with three suggestions: a change of statistics watchdog; returning responsibility for statistics to the Treasury from the Cabinet Office, and bolstering the independence of UK statistics bodies.As part of his enquiries, Bean had asked the Treasury committee for ideas on how to improve public scrutiny and oversight of data collection. Tyrie has written back with three suggestions: a change of statistics watchdog; returning responsibility for statistics to the Treasury from the Cabinet Office, and bolstering the independence of UK statistics bodies.
On the first suggestion, Tyrie commented: “The UK Statistics Authority has been marking its own homework for years – operating as both producer and regulator of official statistics. This should end.” On the first suggestion, Tyrie said: “The UK Statistics Authority has been marking its own homework for years – operating as both producer and regulator of official statistics. This should end.”
Calling for the Treasury to take back responsibility of statistics, Tyrie explained: “Many of the bodies that rely on the production of high quality statistics – the Bank of England and the OBR [Office for Budget Responsibility], for instance – are the responsibility of the Treasury. But the UK Statistics Authority is the responsibility of the Cabinet Office, which has little or no skin in the game.”Calling for the Treasury to take back responsibility of statistics, Tyrie explained: “Many of the bodies that rely on the production of high quality statistics – the Bank of England and the OBR [Office for Budget Responsibility], for instance – are the responsibility of the Treasury. But the UK Statistics Authority is the responsibility of the Cabinet Office, which has little or no skin in the game.”
On independence of UK statistics bodies, Tyrie drew parallels with the process for appointments to the fiscal watchdog, the OBR. Tyrie recommended that the national statistician and the chairman of the UK Statistics Authority be scrutinised by the Treasury committee before being appointed.On independence of UK statistics bodies, Tyrie drew parallels with the process for appointments to the fiscal watchdog, the OBR. Tyrie recommended that the national statistician and the chairman of the UK Statistics Authority be scrutinised by the Treasury committee before being appointed.
“The OBR’s independence – since its creation in 2010 – has been similarly bolstered. That arrangement is generally considered to have been a success,” Tyrie added.“The OBR’s independence – since its creation in 2010 – has been similarly bolstered. That arrangement is generally considered to have been a success,” Tyrie added.
Bean was asked by the government to lead a review of the country’s economic statistics. His interim report, published in December, found “statistics have failed to keep pace with the impact of digital technology”. He also urged government departments to share their data more freely with the ONS.Bean was asked by the government to lead a review of the country’s economic statistics. His interim report, published in December, found “statistics have failed to keep pace with the impact of digital technology”. He also urged government departments to share their data more freely with the ONS.
Appearing before Tyrie’s committee in January, Bean said the nation’s number crunchers “could do better”, had suffered a loss of expertise when their main office was moved to Newport in Wales and that a new generation of statisticians should be more proactive in producing figures that reflect a rapidly changing economy.Appearing before Tyrie’s committee in January, Bean said the nation’s number crunchers “could do better”, had suffered a loss of expertise when their main office was moved to Newport in Wales and that a new generation of statisticians should be more proactive in producing figures that reflect a rapidly changing economy.
But the Royal Statistical Society (RSS) said it would be wrong to move responsibility for UK official statistics from the Cabinet Office to the Treasury.Reacting to Tyrie’s recommendations, Mike Hughes, the chair of the RSS National Statistics Advisory Group, said: “Strengthening the independence of statistics is laudable but bringing them under the purview of the Treasury would achieve the opposite perception and would be counter-productive for government. There would be the constant question of whether Treasury had influenced the figures.”