A lack of finance skills in Whitehall is hampering cost-effective delivery of public services, an influential MPs� committee warns today.

A lack of finance skills in Whitehall is hampering cost-effective delivery of public services, an influential MPs' committee warns today.

The House of Commons Public Accounts Committee found that the number of qualified finance directors on the boards of government departments has increased since 2004 but the lack of financial awareness among other senior staff remains "a barrier to improving financial management".

Just 20% of departments base their policy decisions on a thorough assessment of their financial implications, and only 41% include a full financial appraisal in all of their policy proposals, says the PAC in a report today.

Almost one in five departments (19%) admitted they were "weak" at managing their balance sheets.

The report warned that departments need "much more reliable information" on the costs of their key services if they are to deliver the £30bn value-for-money savings demanded by the Treasury by 2011.

Committee chairman Edward Leigh said: "You would think that no department would contemplate implementing a policy without first estimating what it is going to cost but only 20% of departments based policy decisions on a thorough assessment of their financial implications."