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An independent investigation into the leadership, culture and structure at the Office for National Statistics has been launched by the UK government in a bid to fathom why official data sets have gone awry.
The Cabinet Office and UK Statistics Authority have commissioned former senior mandarin Sir Robert Devereux to carry out the review. Devereux is an ex-permanent secretary at the Department for Work and Pensions and Department for Transport.
Staff at the body were informed about the inquiry, which will conclude in early summer, on Tuesday morning, an official told the Financial Times.
The probe will examine the efficacy and capability of the ONS, as well as its organisational structure, culture and leadership, after internal work failed to fix the problems identified with specific data sets. Ministers now believe a more holistic inquiry is necessary.
The UK’s largest independent producer of official statistics has faced criticism over a series of errors that have come to light in official economic indicators, alongside complaints about delays to data publication.
Concerns over the ONS’s labour force survey have been raised by the Bank of England and elsewhere, after declining response rates made the statistics so volatile that it is difficult to know if employment is rising or falling between quarters.
But further problems have emerged in other data series, including its producer price index data that is used to calculate GDP. The issues have led to warnings that the UK government is flying blind while trying to pilot the economy.
The FT revealed on Monday that Pat McFadden, Cabinet Office minister, was concerned about the reliability of ONS data and had asked Cat Little, his most senior civil servant at the department, to provide options for possible government action.
Little, Cabinet Office permanent secretary, said “data and statistics are integral to decision making and the delivery of public services”, adding: “I’m keen that this review supports the ONS in its unique role of producing official statistics.”
The ONS is overseen by the UK Statistics Authority (UKSA), which is accountable to the UK parliament and the devolved assemblies. Senior MPs have also expressed dismay, with Treasury select committee chair Dame Meg Hillier warning of “troubling errors and delays” last week.
The Office for Statistics Regulation, an arm of UKSA, is separately planning to publish an interim report in April on a systemic review of economic statistics launched last year.
In November, BoE governor Andrew Bailey, speaking at a City of London dinner, said it is a “substantial problem” for monetary policy and other areas “when we don’t know how many people are participating in the economy”.
Sir Keir Starmer’s administration has revived the widespread use of hard targets to improve central government performance, a tactic reminiscent of New Labour, making the need for reliable data to monitor progress even more important.
The Cabinet Office confirmed the review had been commissioned and said that “accurate and timely ONS data is key to making policy to deliver economic growth”, which is the government’s foremost priority.
“In light of some specific concerns, the UKSA and the Cabinet Office are commissioning an independent review into the ONS and how we can best support its staff and the timeliness and accuracy of the UK’s official statistics,” it said.
The ONS said: “We look forward to engaging with Sir Robert Devereux on his review. Later this week we will publish a new strategic business plan for the ONS, setting out how key statistics and services will be prioritised over the year ahead.”
The UKSA did not initially respond to request for comment.
