Revamping Britain's Statistics Office: A Path to Accurate Economic Data

Britain's statistics office plans a leadership split and £10 million investment to address economic data issues impacting the Bank of England. A review suggests separating roles within the office to enhance focus and quality, while additional funding aims to boost core economic and population statistics.

Britain's statistics office is undergoing a major overhaul, including a leadership split and a £10 million investment, aimed at fixing inaccuracies in economic data that have caused difficulties for the Bank of England and private economists alike.

Following a series of data shortfalls, a newly published review recommends separating the role of national statistician from that of the ONS permanent secretary temporarily. In an effort to 'restore quality and confidence,' the ONS will focus its resources on its core economic and population statistics over the next two years, supported by the new financial injection.

Issues with employment data, stemming mainly from low survey response rates, have particularly affected the central bank's ability to assess inflation pressures, according to Governor Andrew Bailey. The advanced version of the Labour Force Survey is expected by 2026. The ONS is also expanding face-to-face surveys and adding 150 skilled roles to strengthen its data processing capabilities.

(With inputs from agencies.)