Government Departments: Cost Effectiveness

As part of the second phase of the spending review Departments have been set a stretching 5% productivity, efficiency and savings target. The Chief Secretary to the Treasury has also asked each department to carry out a line-by-line review of existing day-to-day budgets to identify where spending is no longer aligned with this government’s priorities or is poor value for money.

The Government has undertaken several specific measures to drive efficiency and reduce waste and bureaucracy across Whitehall, as part of the Prime Minister’s Plan for Change. The Cabinet Office has instructed departments to:

• freeze Government Procurement Cards, with a tough new application process to cut the numbers in circulation;

• justify every Arm’s Length Body, otherwise they are to be closed, merged, or delivered by departments to reduce duplication, drive efficiency, and ensure democratic accountability for policy decisions that affect the British public; and

• Officials are required to hold training and team-building exercises and ‘away days’ in government buildings that are available for free, instead of hiring external venues. All departments have been asked to review their policies on procuring corporate-branded and non-essential merchandise, with a view to restricting future purchases.