The UK Treasury's reluctance to fully commit to a cross-government £1.15 billion shared service strategy it has funded risks making the whole effort "potentially unworkable," the Public Accounts Committee (PAC) has warned. HM Treasury's (HMT) decision in June to delay joining Matrix - one of five clusters the government hopes will save £4.3 billion by moving 17 departments and 300 arm's-length bodies onto shared ERP and HR systems - sends "a very poor reputational signal to the rest of the project," the House of Commons spending watchdog said. Under Matrix, the UK administration plans to support the Department for Science, Innovation and Technology, Cabinet Office, Department for Energy Security and Net Zero, Department for Culture, Media and Sport, Department for Business and Trade, Attorney General's Office, Department for Education (DfE), Department of Health and Social Care, as well as HMT - with Workday cloud-based finance and HR software. In a letter to Parliament's PAC last month, HMT confirmed it would not commit to whether it was prepared to move off its existing Oracle Fusion SaaS finance and HR system until December, despite funding the program for five years. The PAC has now slammed HMT's decision. "The ambition for shared services rests upon different parts of government acting collaboratively. The Cabinet Office considers joining shared services to be compulsory. However, HM Treasury is failing to lead by example, providing funds for the strategy and expecting others to sign up, while it remains unconvinced by the likely benefits and unwilling to do so itself," the report published on Wednesday says. "The Cabinet Office must urgently revisit all aspects of its strategy in light of these significant problems and provide assurance that proceeding with shared services will not prove a costly failure. If they are unable to provide such assurance, serious consideration should be given to abandoning the project before even more public money is potentially wasted." According to MPs, the Cabinet Office believed HMT and the DfE had "unconditionally bought into joining shared services at the outset," and maintained that their "participation in shared services is not optional." "HM Treasury now claims that it has the right to unilaterally decide whether to proceed with joining its assigned shared services cluster or not, subject to its Accounting Officer's assessment of further information from the Matrix cluster. Clusters' delivery has been delayed by the Cabinet Office's ineffective management of interdependencies with other government digital programmes," the report adds. The report points out that the DfE's formal commitment would depend on more detail about the project's feasibility and value for money. "These actions, by two major government departments, send a very poor reputational signal to the rest of the project," the PAC said. "For a strategy whose ambition rests on government acting as 'One Civil Service,' a case-by-case approach sets a very dangerous precedent, rendering the strategy optional and therefore potentially unworkable," the report adds. The Register has asked HMT to comment. The PAC called for confirmation of HMT's and the Department for Education's positions on onboarding to Matrix, including the rationale behind this. HMT has committed at least £1.15 billion to the Shared Services Strategy for government, which was launched in March 2021. Since then, the Cabinet Office, the Prime Minister's engine of government, has said it would produce £4.3 billion in benefits "calculated from a mixture of its dashboard and clusters' full business cases" over a 15-year period, according to the PAC. However, benefits for the Matrix cluster are dependent on HMT and the DfE joining. The Cabinet Office gave cost figures ranging from the £846 million spending review figure to "around £1.6 billion," the select committee said. The Shared Services Strategy is set to affect around 470,000 civil servants. The clusters had planned to onboard departmental users to their platforms between July 2026 and March 2029, although the kick-off has been delayed until December this year. "We are concerned that the Shared Services Strategy will fail," the PAC letter states. "The Cabinet Office cannot give assurances that it will overcome critical challenges. Overly complicated governance, no clear ownership, inconsistent departmental buy-in, delays in readying data, and poor interdependency management risk another failed major government initiative." ®