Government Departments: Cost Effectiveness
The question
To ask the Secretary of State for Science, Innovation and Technology, with reference to the speech entitled PM remarks on the fundamental reform of the British state, published on 13 March 2025, on what methodological basis the Prime Minister said that the Government would make £45 billion savings in efficiency; and over what time period this would be.
Answered by Feryal Clark
The Government’s £45 billion estimate is based on a detailed analysis employing three levers: automating routine tasks (£36 billion), migrating services online (£4 billion) and reducing fraud via digital compliance (£5 billion). This work scaled bespoke analysis conducted on the Civil Service to the wider public sector, with overlaying case studies. A more detailed methodology will be published online in due course.
The £45 billion therefore represents the steady‑state annual savings / productivity gains achievable once these efficiency measures are fully embedded across the public sector.
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