UK's data agency has 'deep seated' issues, review finds

A critical government review has highlighted that the UK’s official statistics agency, the Office for National Statistics (ONS), needs to address “deep-seated” issues in order to rebuild its reputation. The review pointed out that many of the problems faced by the ONS stem from inadequacies in its decision-making processes and planning. The agency has been urged to take necessary steps to restore the quality of the economic data it produces.

The ONS plays a crucial role in supplying data used by government bodies to inform policy decisions, such as benefits increases, housing schemes, and migration and crime decisions. Additionally, the Bank of England relies on ONS data to make informed choices about interest rates, impacting mortgage repayments, credit cards, and other loans. The government initiated an independent investigation by Sir Robert Devereux in April to look into the issues plaguing the agency, leading to concerns about the quality of core economic statistics.

Sir Robert’s report highlighted that many of the problems faced by the ONS were a result of decisions made at the top of the organization over several years. It identified a focus on new initiatives that diverted attention from delivering high-quality core economic data. The report also pointed out a reluctance at senior levels to address difficult news effectively. Previous criticisms of the ONS by its regulator and the Bank of England further underscored the need for improvements in the agency’s operations.

Issues such as budget constraints, difficulties in obtaining necessary data through questionnaires, and challenges in recruitment and retention of staff have contributed to the ONS’s struggles. Sir Robert suggested splitting the role of National Statistician into two positions to address the challenges facing the organization. He recommended hiring a senior civil servant to oversee the management of the agency while appointing a senior statistician to provide technical guidance and leadership. The ONS has outlined plans to enhance its core economic statistics, funded by discontinuing its data linking program and implementing management changes to save costs.

Acting National Statistician Emma Rourke has expressed a willingness to address the issues identified in the review and emphasized the ONS’s commitment to improving its economic statistics. Despite additional funding allocated for the 2031 census preparation, the ONS will continue to encounter financial constraints, with rising costs outpacing its budgetary resources

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