Government Departments: Cost Effectiveness
The question
To ask the Chancellor of the Exchequer, whether provisions are in place for the independent audit of efficiency savings reported by departments in line with the Government Efficiency Framework to ensure that non-cash-releasing savings are not used as a method to (a) defer costs to future years and (b) reduce essential services.
Answered by Darren Jones
The Government Efficiency Framework, published in July 2023, sets out what an efficiency is and how it should be categorised, including the difference between technical and allocative efficiencies.
It states that an efficiency should not mean deferring costs to future years or be a reduction in costs with the intention to achieve less. HM Treasury has been clear that these definitions apply to all government departments.
Accounting Officers are expected to oversee the application of the definitions and monitoring of efficiencies. This includes having an appropriate internal assurance process.
As per the government response to the recommendations from the PAC report entitled “Cabinet Office functional savings”, HM Treasury will set out further detail on its approach to providing assurances on the use of GEF definitions in due course.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →