Open data and all that

Archive for the ‘finance’ Category

The economics of open data & the big society

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Yesterday I received an email from a Cabinet Office civil servant in preparation for a workshop  tomorrow about the Open Data in Growth Review, and in it I was asked to provide:

an estimation of the impact of Open Data generally, or a specific data set, on UK economic growth…  an estimation of the economic impact of open data on your business (perhaps in terms of increase in turnover or number of new jobs created) of Open Data or a specific data set, and where possible the UK economy as a whole

My response:

How many Treasury economists can I borrow to help me answer these questions? Seriously.

Because that’s the point. Like the faux Public Data Corporation consultation that refuses to allow the issue of governance to be addressed, this feels very much like a stitch-up. Who, apart from economists, or those large companies and organisations who employ economists, has the skill, tools, or ability to answer questions like that.

And if I say, as an SME, that we may be employing 10 people in a year’s time, what will that count against Equifax, for example (who are also attending), who may say that their legacy business model (and staff) depends on restricting access to company data. If this view is allowed to prevail, we can kiss goodbye to the ‘more open, more fair and more prosperous‘ society the government says it wants.

So the question itself is clearly loaded, perhaps unintentionally (or perhaps not). Still, the question was asked, so here goes:

I’m going to address this in a somewhat reverse way (a sort of proof-by-contradiction). That is, rather than work out the difference between an open data world and a closed data one by estimating the increase from the current closed data world, I’m going to work out the costs to the UK incurred by having closed data.

Note that extensive use is made of Fermi estimates and backs of envelopes

  • Increased costs to the UK of delays and frustrations. Twice this week I have waited around for more than 10 minutes for buses, time when I could have stayed in the coffee shop I was working in and carried on working on my laptop had I known when the next bus was coming.
    Assuming I’m fairly unremarkable here and the situation happens to say 10 per cent of the UK’s working population through one form of transport or another, that means that there’s a loss of potential productivity of approx 0.04% (2390 minutes/2400 mins x 10%).
    Similar factors apply to a whole number of other areas, closely tied to public sector data, from roadworks (not open data) to health information to education information (years after a test dump was published we still don’t have access to Edubase) – just examine a typical week and think of the number of times you were frustrated by something which linked to public information (strength of mobile signal?). So, assuming that the transport is a fairly significant 10% of the whole, and applying it to the UK $2.25 trillion GDP we get £9000 million. Not included: loss of activity due to stress, anger, knock-on effects (when I am late for a meeting I make attendees who are on time unproductive too), etc
  • Knock-on cost of data to public sector and associated administration. Taking the Ordnance Survey as an example of a Shareholder Executive body, of its £114m in revenue (and roughly equivalent costs), £74m comes from the public sector and utilities.
    Although there would seem to be a zero cost in paying money from one organisation to another, this ignores the public sector staff and administration costs involved in buying, managing and keeping separate this info, which could easily be 30% of these costs, say 22 million. In addition, it has had to run a sales and marketing operation costing probably 14% of its turnover (based on staff numbers), and presumably it costs money collecting, formatting data which is only wanted by the private sector, say 10% of its costs.
    This leads to extra costs of £22m + £16m + £14m = £52 million or 45%. Extrapolating that over the Shareholder Executive turnover of £20 billion, and discounting by 50% (on the basis that it may not be representative) leads to additional costs of £4500 million. Not included: additional costs of margin paid on public sector data bought back from the private (i.e. part of the costs when public sector buys public-sector-based data from the private sector is the margin/costs associated with buying the public sector data).
  • Significant decreases in exchange of information, and duplication of work within the public sector (not directly connected with purchase of public sector data). Let’s say that duplication, lack of communication, lack of data exchange increases the amount of work for the civil service by 0.5%. I have no idea of the total cost of the local & central govt civil service, but there’s apparently 450,000 of them, earning, costing say £60,000 each to employ, on the basis that a typical staff member costs twice their salary. That gives us an increased cost of £1350 million. Not included: cost of legal advice, solving licence chain problems, inability to perform its basic functions properly, etc.
  • Increased fraud, corruption, poor regulation. This is a very difficult one to guess, as by definition much goes undetected. However, I’d say that many of the financial scandals of the past 10 years, from mis-selling to the FSA’s poor supervision of the finance industry had a fertile breeding ground in the closed data world in which we live (and just check out the FSA’s terms & conditions if you don’t believe me). Not to mention phoenix companies, one hand of government closing down companies that another is paying money to, and so on. You could probably justify any figure here, from £500 million to £50 billion. Why don’t we say a round billion. Not included: damage to society, trust, the civic realm
  • Increased friction in the private sector world. Every time we need a list of addresses from a postcode, information about other companies, or any other public sector data that is routinely sold, we not only pay for it in the original cost, but for the markups on that original cost from all the actors in the chain. More than that, if the dataset is of a significant capital cost, it reduces the possible players in the market, and increases costs. This may or may not appear to increase GDP, but it does so in the same way that pollution does, and ultimately makes doing business in the UK more problematic and expensive. Difficult to put a cost on this, so I won’t.
  • I’m also going to throw in a few billion to account for all the companies, applications and work that never get started because people are put off by the lack of information, high barriers to entry, or plain inaccessibility of the data (I’m here taking the lead from the planning reforms, which are partly justified on the basis that many planning applications are not made because of the hassle in doing them or because they would be refused, or otherwise blocked by the current system.)

What I haven’t included is reduced utilisation of resources (e.g empty buses, public sector buildings – the location of which can’t be released due to Ordnance Survey restrictions, etc), the poor incentives to invest in data skills in the public sector and in schools, the difficulty of SMEs understanding and breaking into new markets, and the inability of the Big Society to argue against entrenched interests on anything like and equal footing.

And this last point is crucial if localism is going to mean more rather than less power for the people.

So where does that leave us. A total of something like:

£17,850 million.

That, back of the envelope-wise, is what closed data is costing us, the loss through creating artificial scarcity by restricting public sector data to only those pay. Like narrowing an infinitely wide crossing to a small gate just so you can charge – hey, that’s an idea, why not put a toll booth on every bridge in London, that would raise some money – you can do it, but would that really be a good idea?

And for those who say the figures are bunk, that I’ve picked them out of the air, not understood the economics, or simply made mistakes in the maths – well, you’re probably right. If you want me to do better give me those Treasury economists, and the resources to use them, or accept that you’re only getting the voice of those that do, and not innovative SMEs, still less the Big Society.

Footnote: On a similar topic, but taking a slightly different tack is the ever excellent David Eaves on the economics of Toronto’s transport data. Well worth reading.

Update 15/10/2011: Removed line from 3rd para: ” (it’s also a concern that we’re actually the only company attending that’s consuming and publishing open data)” . In the event it turned out there were a couple other SMEs too working with open data day-to-day, but we were massively outnumbered by parts of government and companies whose existing models were to a large degree based on closed data. Despite this there wasn’t a single good word to be heard in favour of the Public Data Corporation, and many, many concerns that it was going down the wrong route entirely. 

Written by countculture

October 13, 2011 at 5:39 pm

When Washington DC took a step back from open data & transparency

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When the amazing Emer Coleman first approached me a year and a half to get feedback on the plans for the London datastore,  I told her that the gold standard for such datastores was that run by the District of Columbia, in the US. It wasn’t just the breadth of the data; it was that DC seemed to have integrated the principles of open data right into its very DNA.

And we had this commitment in mind that when we were thinking which were the US jurisdictions we’d scrape first for OpenCorporates, whose simple (but huge) goal is to build an open global database of every registered company in the world.

While there were no doubt many things that the DC company registry could be criticised for (perhaps it was difficult for the IT department to manage, or problematic for the company registry staff), for the visitors who wanted to get the information it worked pretty well.

What do I mean by worked well? Despite or perhaps because it was quite basic, it meant you could use any browser (or screenreader, for those with accessibility issues) to search for a company and to get the information about it.

It also had a simple, plain structure, with permanent URLs for each company, meaning search engines could easily find the data, so that if you search for a company name on Google there’s a pretty good chance you’ll get a link to the right page. This also means other websites can ‘deep-link’ to the specific company, and that links could be shared by people, in social networking, emails, whatever.

Finally, it meant that it was easy to get the information out of the register, by browsing or by scraping (we even used the scraper we wrote on ScraperWiki as an example of how to scrape a straightforward company register as part of our innovative bounty program).

It was, for the most part, what a public register should be, with the exception of providing a daily dump of the data under an open licence.

So it was a surprise a couple of weeks ago to find that they had redone the website, and taken a massive step back, essentially closing the site down to half the users of the web, and to those search engines and scrapers that wanted to get the information in order to make it more widely available.

In short it went from being pretty much open, to downright closed. How did they do this? First they introduced a registration system. Now, admittedly, it’s a pretty simple registration process, and doesn’t require you to submit any personal details. I registered as ‘Bob’ with a password of ‘password’ just fine. But as well as adding friction to the user experience, it also puts everything behind the signup out of the reach of search engines. Really dumb. Here’s the Google search you get now (a few weeks ago there were hundreds of thousands of results):

The other key point about adding a registration system is that the sole reason is to be able to restrict access to certain users. Let me repeat that, because it goes to the heart of the issue about openness and transparency, and why this is a step back from both by the District of Columbia: it allows them to say who can and can’t see the information.

If open data and transparency is about anything, it’s about giving equal access to information no matter who you are.

The second thing they did was build a site that doesn’t work for those who don’t use Internet Explorer 7 and above, including those who used screenreaders. That’s right. In the year 2011, when even Microsoft are embracing web standards, they decided to ditch them, and with them nearly half the web’s users, and all those who used screenreaders (Is this even allowed? Not covered by Americans With Disabilities Act?).

In the past couple of weeks, I’ve been in an email dialogue with the people in the District of Columbia behind the site, to try to get to the bottom of this, and the bottom seems to be, that the accessibility of the site, the ability for search engines to index it, and for people to reuse the data isn’t a priority.

In particular it isn’t a priority compared with satisfying the needs of their ‘customers’, meaning those companies that file their information (and perhaps more subtly those companies whose business models depend on the data being closed). Apparently some of the companies had complained that they were being listed, contacted and or solicited without their approval.

That’s right, the companies on the public register were complaining that their details were public. Presumably they’d really rather nobody had this information. We’re talking about companies here, remember, who are supposed to thrive or fail in the brutal world of the free market, not vulnerable individuals.

It’s worth mentioning here that this tendency to think that the stakeholders (hate that word) are those you deal with day-to-day is a pervasive problem in government in all countries, and is one of the reasons why they are failing to benefit from open data the way they should and failing too to retool and restructure for the modern world.

Sure, we can work around these restrictions and probably figure out a way to scrape the data, but it’s a sad day to see one of the pioneers of openness and transparency take such a regressive step. What’s next? Will the DC datastore take down its list of business licence holders, or maybe the DC purchase order data, all of which could be used for making unsoliticited requests to these oversensitive and easily upset businesses?

p.s. Apparently this change was in response to an audit report, which I’ve asked for a copy of but which hasn’t yet been sent to me. Any sleuthing or FOI requests gratefully received.

p.p.s. I also understand there’s also new DC legislation that’s been recently been passed that require further changes to the website, although again the details weren’t given to me, and I haven’t had time to search the DC website for them

Written by countculture

June 7, 2011 at 1:39 pm

George Osborne’s open data moment: it’s the Treasury, hell yeah

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As a bit of an outsider, reading the government’s pronouncements on open data feels rather like reading official Kremlin statements during the Cold War. Sometimes it’s not what they’re saying, it’s who’s saying it that’s important.

And so it is, I think, with George Osborne’s speech yesterday morning at Google Zeitgeist, at which he stated, “Our ambition is to become the world leader in open data, and accelerate the accountability revolution that the internet age has unleashed“, and “The benefits are immense. Not just in terms of spotting waste and driving down costs, although that consequence of spending transparency is already being felt across the public sector. No, if anything, the social and economic benefits of open data are even greater.

This is strong, and good stuff, and that it comes from Osborne, who’s not previously taken a high profile position on open data and open government, leaving that variously to the Cabinet Office Minister, Francis Maude, Nick Clegg & even David Cameron himself.

It’s also intriguing that it comes in the apparent burying of the Public Data Corporation, which got just a holding statement in the budget, and no mention at all in Osborne’s speech.

But more than that it shows the Treasury taking a serious interest for the first time, and that’s both to be welcomed, and feared. Welcomed, because with open data you’re talking about sacrificing the narrow interests of small short-term fiefdoms (e.g. some of the Trading Funds in the Shareholder Executive) for the wider interest; you’re also talking about building the essential foundations for the 21st century. And both of these require muscle and money.

It also overseas a number of datasets which have hitherto been very much closed data, particularly the financial data overseen by the Financial Services Authority, the Bank of England and even perhaps some HMRC data, and I’ve started the ball rolling by scraping the FSA’s Register of Mutuals, which we’ve just imported into OpenCorporates, and tying these to the associated entries in the UK Register of Companies.

Feared, because the Treasury is not known for taking prisoners, still less working with the community. And the fear is that rather than leverage the potential that open data allows for a multitude of  small distributed projects (many of which will necessarily and desirably fail), rather than use the wealth of expertise the UK has built up in open data, they will go for big, highly centralised projects.

I have no doubt, the good intentions are there, but let’s hope they don’t do a Team America here (and this isn’t meant as a back-handed reference to Beth Noveck, who I have a huge amount of respect for, and who’s been recruited by Osborne), and destroy the very thing they’re trying to save.

Written by countculture

May 17, 2011 at 2:27 pm

A first look at the council spending data: £10bn, 1.5m payments, 60,000 companies

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Like buses, you wait ages for local councils to publish their spending data, then a whole load come at once… and consequently OpenlyLocal has been importing the data pretty much non-stop for the past month or so.

We’ve now imported spending data for over 140 councils with more being added each day, and now have over a million and a half payments to suppliers, totalling over £10 billion. I think it’s worth repeating that figure: Ten Billion Pounds, as it’s a decent chunk of change, by anybody’s measure (although it’s still only a fraction of all spending by councils in the country).

Along with that we’ve also made loads of improvements to the analysis and data, some visible, other not so much (we’ve made loads of much-needed back-end improvements now that we’ve got so much more data), and to mark breaking the £10bn figure I thought it was worth starting a series of posts looking at the spending dataset.

Let’s start by having a look at those headline figures (we’ll be delving deeper into the data for some more heavyweight data-driven journalism over the next few weeks):

OpenlyLocal spending data dashboard image

144 councils. That’s about 40% of the 354 councils in England (including the GLA). Some of the others we just haven’t yet imported (we’re adding them at about 2 a day); others have problems with the CSV files they are publishing (corrupted or invalid files, or where there’s some query about the data itself), and where there’s a contact email we’ve notified them of this.

The rest are refusing to publish the CSV files specified in the guidelines, deciding to make it difficult to automatically import by publishing an Excel file or, worse, a PDF (and here I’d like to single out Birmingham council, the biggest in the UK, which shamefully is publishing it’s spending only as a PDF, and even then with almost no detail at all. One wonders what they are hiding).

£10,184,169,404 in 1,512,691 transactions. That’s an average transaction value of £6,732 per payment. However this is not uniform across councils, varying from an average transaction value of £669 for Poole to £46,466 for Barnsley. (In future posts, I’ll perhaps have a look at using the R statistical language to do some histograms on the data, although I’d be more than happy if someone beat me to that).

194,128 suppliers. What does this mean? To be accurate, this is the total number of supplying relationships between the councils and the companies/people/things they are paying.

Sometimes a council may have (or appear to have) several supplier relationships with the same company (charity/council/police authority), using different names or supplier IDs. This is sometimes down to a mistake in keying in the data, or for internal reasons, but either way it means several supplier records are created. It’s also worth noting that redacted payments are often grouped together as a single ‘supplier’, as the council may not have given any identifier to show that a redacted payment of £50,000 to a company (and in general there’s little reason to redact such payments) is to a different recipient than a redacted payment of £800 to a foster parent, for example.

However, using some clever matching and with the help of the increasing number of users who are matching suppliers to companies/charities and other entities on OpenlyLocal (just click on ‘add info’ when you’re looking at a supplier you think you can match to a company or charity)., we’ve matched about 40% of these to real-world organisations such as companies and charities.

While that might not seem very high, a good proportion of the rest will be sole-traders, individuals, or organisations we’ve not yet got a complete list of (Parish and Town councils, for example). And what it does mean is we can start to get a first draft of who supplies local government. And this is what we’ve got:

66,165 companies, with total payments of £3,884,271,203 (£3.88 billion), 38.1% of the total £10bn, in 579,518 transactions, making an average payment of £6,702.

8,236 charities, with total payments of £415,878,177, 4.1% of the total, in 55,370 transactions, making an average payment of £7,511.

Next time, we’ll look at the company suppliers in a little more detail, and later on the charities too, but for the moment, as you can see we’re listing the top 20 matched indivudual companies and charities that supply local government. Bear in mind a company like Capita does business with councils through a variety of different companies, and there’s no public dataset of the relationships between the companies, but that’s another story.

Finally, the whole dataset is available to download as open data under the same share-alike attribution licence as the rest of OpenlyLocal, including the matches to companies/charities that are receiving the money (the link is at the bottom of the Council Spending Data Dashboard). Be warned, however, it’s a very big file (there’s a row for every transaction), and so is too big for Excel (or even Google Fusion tables for that matter), so it’s most use to those using a database, or doing academic research.

* Note: there are inevitably loads of caveats to this data, including that councils are (despite the guidance) publishing the data in different ways, including, occasionally, aggregating payments, and using over-aggressive redaction. It’s also, obviously, only 40% of the councils in England., although that’s a pretty big sample size. Finally there may be errors both in the data as published, and in the importing of it. Please do let us know at if  you see any errors, or figures that just look wrong.

Written by countculture

February 23, 2011 at 11:15 am

Not the way to build a Big Society: part1 NESTA

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I took a very frustrating phone call earlier today from NESTA, an organisation I’ve not had any dealings with it before, and don’t actually have a view about it, or at least didn’t.

It followed from an email I’d received a couple of days earlier, which read:

I am contacting you about a project NESTA  are currently working on in partnership with the Big Society Network called Your Local Budget.

Working with 10 pioneer local authorities, we are looking at how you can use participatory budgeting to develop new ways to give people a say in how mainstream local budgets are spent. Alongside this we will also be developing an online platform that enables members of the public to understand and scrutinise their local authority’s spending, and connect with each other to generate ideas for delivering better value for money in public spending.

We would like to share our thinking and get your thoughts on the online tool to get a sense of what is needed and where we can add value. You are invited to a round table discussion on Friday 19 November, 11am – 12.30pm at NESTA that will be chaired by Philip Colligan, Executive Director of the Public Services Lab. Following the meeting we intend to issue an invitation to tender for the online tool.

Apart from the short notice & terrible timing (it clashes with the Open Government Data Camp, to which you’d hope most of the people involved would be going), the main question I had was this:


I got the phone call because I couldn’t make the round table, and for some feedback, and this was the feedback I gave: I don’t understand why this is being done. At all.

Putting aside the participatory budgeting part (although this problem seems to be getting dealt with by Redbridge council and YouGov, whose solution is apparently being offered to all councils), there’s the question of the “online platform that enables members of the public to understand and scrutinise their local authority’s spending, and connect with each other to generate ideas for delivering better value for money in public spending.

Excuse me? Most of the data hasn’t been published yet, there are several known organisations and groups (including OpenlyLocal) that have publicly stated they going to to be importing this data and doing things with it – visualising it, and allowing different views and analysis. Additionally, OpenlyLocal is already talking with several newspaper groups to help them re-use the data, and we are constantly evolving how we match and present the data.

Despite this, Nesta seems to have decided that it’s going to spend public money on coming up with a tendered solution to solve a problem that may be solved for zero cost by the private sector. Now I’m no roll-back-the-government red-in-tooth-and-claw free marketeer, but this is crazy, and I said as much to the person from Nesta.

Is the roundtable to decide whether the project should be done, or what should be done? I asked. The latter I was told. So, they’ve got some money and  have decided they’re going to spend it, even though the need may not be there. At a time when welfare payments are being cut, essential services are being slashed, for this sort of thing to happen is frankly outrageous.

There are other concerns here too – I personally think websites such as this are not suitable for a tender process, as that doesn’t encourage or often even allow the sort of agile, feedback-led process that produces the best websites. They also favour those who make their living by tendering.

So, Nesta, here’s a suggestion. Park this idea for 12 months, and in the meantime give the money back to the government. If you want to act as an angel funding then act as such (and the ones I’ve come across don’t do tendering). A reminder, your slogan is ‘making innovation flourish’, but sometimes that means stepping back and seeing what happens. This is not the way to building a Big Society

Written by countculture

November 17, 2010 at 2:27 pm

Open data, fraud… and some worrying advice

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One of the most commonly quoted concerns about publishing public data on the web is the potential for fraud – and certainly the internet has opened up all sorts of new routes to fraud, from Nigerian email scams, to phishing for bank accounts logins, to key-loggers to indentity theft.

Many of these work using two factors – the acceptance of things at face value (if it looks like an email from your bank, it is an email from them), and flawed processes designed to stop fraud but which inconvenience real users while making life easy from criminals.

I mention this because of some pending advice from the Local Government Association to councils regarding the publication of spending data, which strikes me as not just flawed, but highly dangerous and an invitation to fraudsters.

The issue surrounds something that may seem almost trivial, but bear with me – it’s important, and it’s off such trivialities that fraudsters profit.

In the original guidance for councils on publishing spending data we said that councils should publish both their internal supplier IDs and the supplier VAT numbers, as it would greatly aid the matching of supplier names to real-world companies, charities and other organisations, which is crucial in understanding where a local council’s money goes.

When the Local Government Association published its Guidance For Practitioners it removed those recommendations in order to prevent fraud. It has also suggested using the internal supplier ID as a unique key to confirm supplier identity. This betrays a startling lack of understanding, and worse opens up a serious vector to allow criminals to defraud councils of large sums of money.

Let’s take the VAT numbers first. The main issue here appears to be so-called missing trader fraud, whereby VAT is fraudulently claimed back from governments. Now it’s not clear to me that by publishing VAT numbers for supplier names that this fraud is made easier, and you would think the Treasury who recommend publishing the VAT numbers for suppliers in their guidance (PDF) would be alert to this (I’m told they did check with HMRC before issuing their guidance).

However, that’s not the point. If it’s about matching VAT numbers to supplier names there’s already several routes for doing this, with the ability to retrieve tens of thousands of them in the space of an hour or so, including this one:

Click on that link and you’ll get something like this:

Whether you’re a programmer or not, you should be able to see that it’s a trivial matter to go through those thousands of results and extract the company name and VAT number, and bingo, you’ve got that which the LGA is so keen for you not to have. So those who are wanting to match council suppliers don’t get the help a VAT number would give, and fraudsters aren’t disadvantaged at all.

Now, let’s turn to the rather more serious issue of internal Supplier IDs. Let me make it clear here, when matching council or central government suppliers, internal Supplier IDs are useful, make the job easier, and the matching more accurate, and also help with understanding how much in total redacted payees are receiving (you’d be concerned if a redacted person/company received £100,000 over the course of a year, and without some form of supplier ID you won’t know that). However, it’s not some life-or-death battle over principle for me.

The reason the LGA, however, is advising councils not to publish them is much more serious, and dangerous. In short, they are proposing to use the internal Supplier ID as a key to confirm the suppliers identity, and so allow the supplier to change details, including the supplier bank account (the case brought up here to justify this was the recent one of South Lanarkshire, which didn’t involve any information published as open data, just plain old fraudster ingenuity).

Just think about that for a moment, and then imagine that it’s the internal ID number they use for you in connection with paying your housing benefits. If you want to change your details, say you wanted to pay the money into a different bank account, you’d have to quote it – and just how many of us would have somewhere both safe to keep it and easy to find (and what about when you separated from your partner).

Similarly, where and how do we really think suppliers are going to keep this ID (stuck on a post-it note to the accounts receivable’s computer screen?), and what happens when they lose it? How do they identify themselves to find out what it is, and how will a council go about issuing a new one should the old one be compromised – is there any way of doing this except by setting up a new supplier record, with all the problems that brings.

And how easy would it be to do a day or two’s temping in a council’s accounts department and do a dump/printout of all the Supplier IDs, and then pass them onto fraudsters. The possibilities – for criminals – are almost limitless, and the Information Commissioner’s Office should put a stop to this at once if it is not to lose a serious amount of credibility.

But there’s an bigger underlying issue here, and it’s not that organisations such as the LGA don’t get data (although that is a problem), it’s that such bodies think that by introducing processes they can engineer out all risk, and that leads to bad decisions. Tell someone that suppliers changing bank accounts is very rare and should always be treated with suspicion and fraud becomes more difficult; tell someone that they should accept internal supplier IDs as proof of identity and it becomes easy.

Government/big-company bureaucrats not only think like government/big-company bureaucrats, they build processes that assumes everyone else does. The problem is that that both makes more difficult for ordinary citizens (as most encounters with bureaucracy make clear), and also makes it easy for criminals (who by definition don’t follow the rules).

Written by countculture

October 26, 2010 at 11:38 am

Opening up council accounts… and open procurement

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Since OpenlyLocal started pulling in council spending data, it’s niggled at me that it’s only half the story. Yes, as more and more data is published you’re beginning to get a much clearer idea of who’s paid what. And if councils publish it at a sufficient level of detail and consistently categorised, we’ll have a pretty good idea of what it’s spent on too.

However, useful though that is, that’s like taking a peak at a company’s bank statement and thinking it tells the whole story. Many of the payments relate to goods or services delivered some time in the past, some for things that have not yet been delivered, and there are all sorts of things (depreciation, movements between accounts, accruals for invoices not yet received) that won’t appear on there.

That’s what the council’s accounts are for — you know, those impenetrable things locked up in PDFs in some dusty corner of the council’s website, all sufficiently different from each other to make comparison difficult:

For some time, the holy grail for projects like OpenlyLocal and Where Does My Money Go has been to get the accounts in a standardized form to make comparison easy not just for accountants but for regular people too.

The thing is, such a thing does exist, and it’s sent by councils to central Government (the Department for Communities and Local Government to be precise) for them to use in their own figures. It’s a fairly hellishly complex spreadsheet called the Revenue Outturn form that must be filled in by the council (to get an idea have a look at the template here).

They’re not published anywhere by the DCLG, but they contain no state secrets or sensitive information; it’s just that the procedure being followed is the same one as they’ve always followed, and so they are not published, even after the statistics have been calculated from the data (the Statistics Act apparently prohibit publication until the stats have been published).

So I had an idea: wouldn’t it be great if we could pull the data that’s sitting in all these spreadsheets into a database and so allow comparison between councils’ accounts, thus freeing it from those forgotten corners of government computers.

This would seem to be a project that would be just about simple enough to be doable (though it’s trickier than it seems) and could allow ordinary people to understand their council’s spending in all sorts of ways (particularly if we add some of those sexy Where Does My Money Go visualisations). It could also be useful in ways that we can barely imagine  – some of the participatory budget experiments going in on in Redbridge and other councils would be even more useful if the context of similar councils spending was added to the mix.

So how would this be funded. Well, the usual route would be for DCLG or perhaps the one of the Local Government Association bodies such as IDeA to scope out a proposal, involving many hours of meetings, reams of paper, and running up thousands of pounds in costs, even before it’s started.

They’d then put the process out to tender, involving many more thousands in admin, and designed to attract those companies who specialise in tendering for public sector work. Each of those would want to ensure they make a profit, and so would work out how they’re going to do it before quoting, running up their own costs, and inflating the final price.

So here’s part two of my plan, instead going down that route, I’d come up with a proposal that would:

  • be a fraction of that cost
  • be specified on a single sheet of paper
  • paid for only if I delivered

Obviously there’s a clear potential conflict of interest here – I sit on the government’s Local Public Data Panel and am pushing strongly for open data, and also stand to benefit (depending on how good I am at getting the information out of those hundreds of spreadsheets, each with multiple worksheets, and matching the classification systems). The solution to that – I think – is to do the whole thing transparently, hence this blog post.

In a sense, what I’m proposing is that I scope out the project, solving those difficult problems of how to do it, with the bonus of instead of delivering a report, I deliver the project.

Is it a good thing to have all this data imported into a database, and shown not just on a website in a way non-accountants can understand, but also available to be combined with other data in mashups and visualisations? Definitely.

Is it a good deal for the taxpayer, and is this open procurement a useful way of doing things? Well you can read the proposal for yourself here, and I’d be really interested in comments both on the proposal and the novel procurement model.


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