Government to legislate for independence in statistics

Today’s Queen’s Speech announced that the Government will legislate during this Parliamentary session to reinforce the independence, integrity and quality of statistics produced in government. The Financial Secretary to the Treasury, John Healey, is now publishing details of what the Statistics and Registration Services Bill will contain.
The Bill will create a statutorily independent Statistics Board with a remit stretching across the UK, responsible for the quality and comprehensiveness of government statistics. In a shift of power away from Ministers, the new Board will also be responsible for overseeing the Retail Prices Index measure of inflation (RPI).

Speaking at the Statistics Commission Open Meeting, John Healey, said:
“So this is indeed a historic day in the development of the UK’s statistics system. Independence of statistics is the next step in the Chancellor’s reforms of the machinery of modern economic governance.

“The new statistics system is based on the approach the Chancellor has taken with the Bank of England’s Monetary Policy Committee, the Financial Services Authority and the Competition Commission - formal devolution of ministerial power in statute to credible independent institutions with a clear remit set by Government and Parliament”.

“Our aim is to establish a system in statute that will deliver the highest standards of quality, integrity and credibility in government statistics. A system that can evolve in light of experience and the developing demands for national statistics that are reliable, timely and relevant”.

The Government will legislate for:

the creation of an independent Statistics Board;
devolution of responsibility for the scope, methodology and definition of the of the RPI to the new Statistics Board;
a strengthened role for the National Statistician, who will run the Office for National Statistics, reporting straight to the Board, no longer to Ministers;
the Board to draw up a code of practice, against which all National Statistics will be assessed; and
the new arrangements to apply across the UK, following decisions by Northern Ireland, Scotland and Wales to participate.

Full details of the Government’s plans are detailed in the document Independence for statistics: The Government´s response. which is available from the Treasury’s website.

Notes for editors

1. The Chancellor announced the Government’s intention to legislate for independence in statistics in a statement to Parliament on 28 November 2005.
2. The Government published a consultation document, Independence for statistics on 22 March 2006. The consultation document is available from the Treasury’s website at www.hm-treasury.gov.uk
3. During the 12-week consultation period, which ended on 14 June 2006, nearly 80 responses were received. The responses are available from the Treasury’s website.
4. The Treasury Sub-Committee also conducted an inquiry into the Government’s proposals, which reported on 26 July 2006. The Committee’s report, and the Government’s response (which the Committee published on 9 October), are available on the Parliament website at www.parliament.uk
5. The Chancellor currently has responsibility for the scope and definition of the RPI. The legislation will shift this responsibility to the new board, with a limited safeguard based on the judgment of the Governor of the Bank of England to ensure that changes do not damage the interests of holders of index-linked gilts and the public finances. The Board will retain oversight of CPI.
6. Copies of the Financial Secretary’s speech to the Statistics Commission are available from the Treasury’s website.
7. The Statistics Commission is an independent public body set up in June 2000 to “help ensure that official statistics are trustworthy and responsive to public needs”, to “give independent, reliable and relevant advice” and by so doing to “provide an additional safeguard on the quality and integrity” of official statistics. More information on the Commission is available from the Statistics Commission’s website at www.statscom.org.uk
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