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Government efficiency – Do the math

  • Artigo

According to the Treasury press statement on Monday this week, the Treasury Secretary, Yvette Cooper, has demanded that government needs to have a ‘better bang for our bucks’. I could be concerned that a Treasury Secretary does not appear to comprehend which currency we are using but instead I shall join her in her use of colloquialisms by ‘doing the math’ on government efficiencies achieved so far and committed in the latest spending review:

  • Gershon savings achieved:                                                        

£23 billion
  • Comprehensive Spending Review (CSR) 07 targets:   

£30 billion
  • Additional ‘bang for the bucks’ savings:    

£5 billion
  • Shared services review savings:  

£1.4 billion (there is some debate on this particular figure you can read here)   

That makes an impressive £59.4 billion for re-investment in delivering better public services since the efficiency drive started with the 2004 Gershon Review.

One of the most interesting aspects of how these savings are achieved is how Local Authorities in particular are using IT to drive up efficiency and drive out unnecessary costs. Two recent examples include the City of Edinburgh Council, which has realised £9 million in savings (equivalent to £40 per council tax payer), and Wakefield Metropolitan Borough Council, which has realised £4 million in savings through better use of IT and implementing innovative new ways of working.

...that just leaves another £59.27 billion to find but as my grandmother used to say, in less inflationary times, look after the millions and the billions will take care of themselves.

Posted by Ian