The Government's Efficiency Programme

Gershon Review

In August 2003 the Prime Minister and Chancellor asked Sir Peter Gershon to review the efficiency of central, regional and local government. He was asked to identify efficiency savings which would release resources to the front line of public services. His report was published in July 2004 to coincide with the Chancellor’s 2004 Spending Review.

2004 Spending Review

In his 2004 Spending Review the Chancellor announced:

• a programme of £21.5 billion annual efficiency gains, comprised of both cashable and non-cashable gains
• departmental targets for efficiency of at least 2.5% a year
• a reduction in over 80,000 civil service posts
• more detailed plans for relocation of 20,000 posts out of London and the South East by 2010
• a reporting framework which aims to ensure public accountability for efficiency savings.

OGC Efficiency Team

To meet these targets, the Prime Minister and the Chancellor asked the Chief Executive of the Office of Government Commerce, John Oughton, to implement the recommendations of the Gershon Review. To carry out the recommendations, the Efficiency Team was created. Reporting to John Oughton, the Team is led by David Rossington.

The Efficiency Team is working with government departments to help them deliver the targeted efficiency savings. While the Efficiency Team is responsible for the overall programme, the departments are responsible for delivering the efficiency targets announced in the 2004 Spending Review.