Following a thorough inquiry, the Public Administration and Constitutional Affairs Committee has published its latest report this morning entitled “Governance of official statistics: redefining the dual role of the UK Statistics Authority; and re-evaluating the Statistics and Registration Service Act 2007”. Our main finding is that UKSA’s dual role of both producing and regulating official statistics has compromised its ability to ensure that statistics serve the public good. We therefore recommend that UKSA is split into two separate bodies: the Office for National Statistics and the Office for Statistics Regulation.
This may seem a rather dry and obscure topic, but the reality is that pensioners, students and rail commuters pay the price of dodgy statistics. Public confidence in the Government’s policies and the political debate also suffers as a result. In 2014, when our predecessor Committee exposed how police officers were manipulating the collection and interpretation of police recorded crime to make the situation look better than it was, UKSA withdrew its “official statistics” designation of approval for police recorded crime. In 2013, UKSA did the same to the retail prices index, because it has for some time been regarded as an unreliable indicator of movements in retail prices.
RPI and UKSA’s role in the governance of statistics is used as a case study in our report. UKSA has not made itself sufficiently independent of the Government, particularly from the Treasury, and is therefore shying away from its responsibility to be accountable to Parliament and the public. For almost a decade, there has been concern about the discrepancy between the consumer prices index and UKSA and the ONS’s calculation of RPI, but UKSA has refused to account for its RPI figure. As a result of overestimated RPI, commuters face higher rail fares and students have to pay higher student loan interest rates. In January 2019, the Economic Affairs Committee of the other place reported that by failing to fix RPI, UKSA risks breaching its statutory duties. The report recommends that UKSA demonstrates more proactive, quicker responses to concerns about the accuracy and misuse of statistics and should more clearly demonstrate its independence from key stakeholders, such as the Treasury, when it has significant disagreements with producers of statistics.
PACAC also expresses concern about UKSA’s openness to parliamentary and public scrutiny. The report finds that UKSA is slow to respond or take action on correspondence and reports from parliamentary Committees. PACAC therefore urges UKSA to attend an annual hearing with the Committee to improve its accountability to Parliament and make its governance more transparent, so that it can be scrutinised in public. PACAC concludes that, through its continued mishandling of RPI, UKSA has allowed what was originally a simple mistake in the collection of price inflation data to snowball into a major unresolved issue lasting for a decade.