The Analysis Editor’s Letter


Setting the right standards


Stephen Kiely Editor, CCRMagazine stephen@ccrmagazine.co.uk


Nobody would, and nobody should think that the current time of COVID-19 and lockdown is a ‘good thing’ – too much has already been lost and more is surely yet to come – but it is undeniable that the credit and collections profession needs to use this time as an opportunity to move forward and to think innovatively. One such example of real progress –


although one that began long before anyone had heard of the virus – was brought to fruition last month, just as lockdown was starting to ease. Steve Coppard, deputy director of the Government Debt Management Function, set out the new Government Debt Standard. The standard had actually existed for a


number of months but getting it into the public domain had been a goal to improve the transparency of government policy and to enable constructive challenge and feedback from colleagues right across the industry. The purpose of this government standard is to set expectations for


the management of debt owed to government departments and their arm’s length bodies, to help achieve a more consistent approach, improve capability, minimise losses to the exchequer, and ensure taxpayers money is spent in the most efficient and effective way, whilst minimising any unnecessary stress on the debtor. At all times, those responsible or accountable for managing debt


should ensure: l Strategic debt management objectives are aligned to government policy, departmental policy and organisational objectives. l Governance, management frameworks, and controls are proportionate and appropriate to the debt and the level of prevailing risk. l Accountabilities and responsibilities are defined, mutually consistent, and traceable across all levels of management. l Their organisations ability to recover debt is regularly reviewed and optimised. l Debt management practices tackle current aged debt, reduce the aging of debt and prevent the creation of overdue debt. l Fairness to taxpayers and those that do pay on time, by taking a proportionate response to those that do not. l The impact of debt collection practices on vulnerable debtors is balanced with the need to have the right deterrents in place. l Public service codes of conduct and ethics, and those of associated professions, are upheld. The purpose of the cross-government debt management strategy is


June 2020


to ensure consistency across government. The strategy should: l Establish an end-to-end approach to managing overdue debt owed to government. l Promote a consistent understanding of the HMG debt portfolio. l Drive greater use of data and analytics, to maximise the effectiveness of debt management. l Promote best practice through the development of guidance and capability. To ensure alignment with this strategy


those responsible for debt should actively engage with the senior lead for debt in the centre through co-ordinated forums and knowledge networks. Those responsible for debt shall set out their organisation’s approach to managing


debt through a documented debt management strategy. The purpose of an organisation’s debt management strategy is to


set strategic debt management objectives and to outline how debt should be managed in order to achieve these objectives. The debt management strategy:


l Shall be consistent with the cross government debt management strategy. l Should align to best practice across government. l Should promote (where commercially viable), but not default to, the use of common Government as a Platform (GaaP) services such as Verify, Notify and Pay. l Should cover a minimum period of five years from the date of draft and refresh. l Should be approved by the appropriate board(s) or executive committees and operational leads. l Should be submitted to the senior lead for debt in the centre and HMTreasury spending teams for scrutiny and comment. l Should take into account a forecast of debt-balance data. Debt-management strategies should be reviewed annually by


those responsible for debt in order to ensure they remain relevant, and compliant with the guidance set out by the senior lead for debt in the centre and HMTreasury spending teams. Such acts of progressive thinking are the very hallmark of our


industry. Mr Coppard was the first ever speaker at CCRInteractive: Virtual, the online-conference which seeks to share best practice ideas a policies. The next CCRInteractive: Virtual will be held on Wednesday 24 June – you can register, free of charge, to attend at www.ccrivirtual.com. Enjoy the magazine!


www.CCRMagazine.com 3


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