Productivity in public services

Following on from our recent blog about NHS productivity, the Cabinet Office has issued a press release highlighting how the government has been able to save £5.5 billion in the last financial year (2011/12).  The savings derive from:

  • “£1 billion in savings achieved last year through the moratorium on consultancy spend and on extending existing consultancy contracts.  Since 2010 consultancy spend has been cut by over 85%.
  • £390 million of savings from freezing all marketing spend – except when operationally necessary. This builds on the £400 million the Government saved in 2010/11.
  • The in-year cost of the Government’s property estate was reduced by nearly £200 million by exiting unnecessary properties, and questioning each and every lease break before they were extended. This is more than double the £90 million in savings achieved the year before.
  • Almost half a billion in savings were achieved last year by using the Government’s bulk-buying power and pooling spend on goods and services used by different government departments. This comes on top of the £360 million saved in 2010/11.
  • Reductions in the size of the Civil Service through stronger controls on non-essential recruitment has contributed to a reduction in salary costs for 2011/12 of nearly £1.5 billion. This is an enormous increase on the £300 million in savings the Government made the previous year.”

Source: Cabinet Office press release

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This entry was posted in Chap 06 Materials and inventory, Chap 11 Jobs and people, Sector: Public Services & Charities and tagged , , . Bookmark the permalink.

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