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