The FCO did well in 2009-10 in quickly bringing its expenditure down to within its budget. However, measurement and evaluation were limited. The FCO’s approach to cost reduction must now be fully strategic and sustainable. It will be vital to avoid damaging value for money through over-simplistic cuts.
We have published good practice for accurate public reporting of savings in Appendix 2 of The Efficiency and Reform Group’s role in improving public sector value for money.
This guidance has been developed from our examinations of the savings programmes in the 2004 and 2007 Spending Review periods.
The Group’s priorities are to improve government efficiency and reform public services. It is too soon to judge its success. This review details various challenges that the Group faces and is intended to provide an objective baseline against which its progress can be assessed.
HMRC has taken significant steps to improve the efficiency of National Insurance administration, but needs to demonstrate more clearly that it is providing value for money from the £350 million it spends each year and take advantage of opportunities to secure further savings.
Most PFI hospital contracts are well-managed and the evidence indicates that they are currently achieving the value for money expected when the contracts were signed. There continue to be risks, however, to the long-term value for money of these contracts.
The Department of Health has developed an ambitious and comprehensive strategy for dementia. However, there has not yet been a robust approach to implementation, according to a National Audit Office report published today. Despite the Department stating, since 2007, that dementia is now a national priority, it has not been given the levers or urgency […]
The NAO review looked at what the BBC is doing to maximise the efficiency of radio production across its Network and Nations radio stations, focusing on the use of cost comparisons for similar programme types within the BBC stations and with commercial competitors, the BBC’s efficiency plans and the BBC’s assessment of the impact of efficiency initiatives on performance.
Plans to increase the efficiency and effectiveness of services such as human resources, payroll and finance could cost the Department for Transport £81 million (by March 2015) rather than saving £57 million as originally expected. There will need to be substantial improvements in the shared service centre’s productivity if the Department’s original targets are to […]
Some departments are on their way towards having a structured and strategic approach to property asset management. But central government departments are still a long way from achieving full value for money from their office accommodation, according to the National Audit Office. In a report out today, the government’s spending watchdog found that departments could […]
Sir John Bourn, head of the National Audit Office, reported to Parliament today that, halfway into the three-year efficiency programme, government departments have reported £13.3 billion in annual efficiency savings, 62 per cent of the £21.5 billion target. But departments’ progress towards achieving their individual targets varies, indicating that some departments still have a lot […]
Sir John Bourn, head of the National Audit Office, today reported that the Department for Culture, Media and Sport has adequate evidence to assess the BBC’s efficiency as part of the Department’s consideration of the next licence fee settlement. As part of the process of setting the level of the television licence fee from April […]
The National Audit Office has urged the NHS to ensure that a focus on quality and safety is at the top of the agenda in primary care. In a report out today, the NAO says that almost all primary care trusts (PCTS) have clinical governance structures and processes in place that should assure quality and […]
Difficulties encountered by a government agency in making payments under the EU’s Single Payment Scheme have caused distress to a significant minority of farmers, cost farmers money in additional interest and bank charges, and undermined the farming industry’s confidence in the agency, according to a report published today. The study by the National Audit Office […]
Substantial savings, in addition to the significant improvements already achieved, could be made by more efficient management and purchasing of postal services by the public sector, according to a report by Parliament’s spending watchdog. The National Audit Office has found that an estimated £31 million a year could be saved across the public sector by […]
The Department for Work and Pensions has made significant progress in delivering services through contact centres so that they are delivering improvements in value for money, but needs to continue to tackle a variety of barriers to exploit their full potential, according to a National Audit Office report published today. The Department’s 60 contact centres […]
Against a background of rising gas prices, Sir John Bourn, head of the National Audit Office, reported today on major developments in the gas industry that have the potential to reduce gas bills in the longer term. There is uncertainty, however, as to whether consumers will see the full extent of the potential benefits. In […]
The management of Corporation Tax by HM Revenue and Customs’ Area offices has improved in recent years, according to the National Audit Office. However, the variations in performance across offices offer scope for further savings in the costs of managing the tax and generating additional tax revenue. The Department’s Area offices administer Corporation Tax for […]
Sir John Bourn, head of the National Audit Office, reported today that while the Environment Agency provides well-managed and professional water resource management services there is scope to improve efficiency and realise net savings of some £450,000 a year on its activities in England, with a further potential saving of between £1 million to £2 […]
Sir John Bourn, Head of the National Audit Office, today welcomed Ofgem’s efforts to help vulnerable consumers, such as the elderly or those on benefits. He encouraged Ofgem and the energy suppliers to build on the Social Action Plan to allow more vulnerable consumers to take advantage of the competitive energy market. He also reported […]
Following reforms to decision-making and the appeal process in social security benefits, introduced in 1999 by the Department for Work and Pensions, the number of appeals against decisions has fallen overall by around 15 per cent and waiting times for appeal hearings have been cut. Since the reforms, decision-making performance for some benefits, but not […]