15 The 2016 review led CCS to change its focus from transitioning spend from departments to improving its internal operations. CCS is now working to standardise and integrate its services and has prioritised investments that will strengthen the control environment and process management. CCS plans to reduce the number of unique services it offers and transfer some functions and people back to departments. Additionally, as part of the 2015 Spending Review, CCS, the Cabinet Office and HM Treasury agreed to change the way that CCS is funded. By the end of 2017-18, CCS will stop charging departments a fee for buying goods and services on their behalf, and will be mainly funded by a matching increase to an existing levy that suppliers pay when they provide services bought through CCS frameworks (paragraph 3.5).
16 The review has generated goodwill among central government customers. Our interviews with departmental commercial officials show an increased confidence in CCS and its leadership. In general, departments were pleased by the focus on improving service quality and told us that the quality of the relationships between departments and CCS was improving (paragraph 3.6).
17 However, CCS is managing the implementation in an iterative manner and needs to demonstrate clear progress to customers and stakeholders. CCS is implementing these changes in an iterative manner and is producing detailed plans only as far ahead as the next implementation stage. This allows CCS to adapt the implementation and engage staff at key stages. However, it means that customers and staff may not be able to understand what CCS is trying to do and how much progress it is making. In particular:
a CCS has not yet agreed the detailed implications of its new standard service offering with departments. However, CCS has set out a high level service offering and is currently implementing this new offering in detailed consultation with departments (paragraph 3.16 and Figure 18).
b CCS does not yet have an agreed business case that sets out a thorough understanding of what government spending should be centralised in CCS and realistic targets for CCS (paragraph 3.16 and Figure 18).
c Customers do not yet have a clear view of the benefits to be achieved or the milestones to be reached (paragraph 3.16 and Figure 18).