Office for Value for Money: Cost Effectiveness
The question
To ask the Chancellor of the Exchequer, what the evidential basis is for the Office for Value for Money making almost £14 billion of annual efficiency gains by 2028-29 against planned day-to-day budgets for 2025-26.
Answered by James Murray
The OVfM has supported departments to develop bespoke technical efficiency targets, underpinned by credible delivery plans. In total, the government identified efficiencies of almost £14 billion a year by 2028-29.
The OVfM’s approach was guided by three principles, which together will deliver a sustainable outcome. First, it has placed greater focus on improving outcomes not just reducing costs. It has achieved this by clearly distinguishing between technical efficiencies (delivering more output for the same input, or the same output for less input) and stopping activities (reducing outputs). This is in line with the Government Efficiency Framework definition of a technical efficiency. Second, it has aimed to increase confidence in the deliverability of efficiencies, by working with departments to develop bespoke targets underpinned by credible plans. Third, it has supported greater transparency by publishing departments’ targets and plans, allowing external scrutiny and public accountability.
Further detail on the basis for departments’ targets and plans can be found in the Departmental Efficiency Delivery Plans document published at Spending Review 2025: https://www.gov.uk/government/publications/departmental-efficiency-delivery-plans.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →