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Cost reduction and affordability

All public services have to be delivered with lower budgets and show the public that they are affordable. Where government is reducing costs it could benefit from the lessons learnt and good practice identified in the NAO's public sector work. The biggest savings are being made through complete transformation of service delivery, including digital delivery of services. Substantial savings can also be made through specific aspects of financial management, such as reducing fraud and error and better management of assets and liabilities.

There are also risks to making savings, including to long-term innovation and investment. Government needs to ensure the long-term financial and service sustainability of local services, it must maintain strong oversight of contractors, and it should ensure environmental sustainability. Performance measurement is also key to providing the information needed to make crucial decisions.

Key NAO publications:

Central government staff costs (Jun 2015)
Forecasting in government to achieve value for money (Jan 2014)
Evaluation in Government (Dec 2013)
Financial management in government (Jun 2013)

The BBC’s strategic financial management

This report assesses how the BBC has positioned itself to respond to financial and strategic challenges and opportunities.

Sector(s): Arts, media and sport, Business and enterprise

Performance Improvement area(s): Cost reduction and affordability, Financial management

Department(s): Department for Digital, Culture Media and Sport

Published:
20 Jan 2021

The Equipment Plan 2020-2030

This report reviews the robustness of assumptions underpinning the Ministry of Defence’s 2020–2030 Equipment Plan.

Sector(s): National security

Performance Improvement area(s): Cost reduction and affordability, Oversight of service delivery

Department(s): Ministry of Defence

Published:
12 Jan 2021

Spring 2021

Public Service Pensions

Public service pensions are a significant part of the pensions landscape in the UK. As at 31 March 2020 the major public service pension schemes had over 8 million members, including active and deferred members, and current pensioners. Most of the main public service pension schemes are unfunded, with benefits funded from current contributions on … Read more

Posted 28 October 2020 in: Central Finance and Treasury, Welfare, Pensions and Employment

Performance Improvement area(s): Cost reduction and affordability, Financial management

Contact:

NAO Press Office
+44 (0)20 7798 7400 or email pressoffice@nao.org.uk

Carrier Strike – Preparing for deployment

This report examines the MoD’s management of the programme since 2017 and the risks towards achieving Carrier Strike’s full capabilities.

Sector(s): National security

Performance Improvement area(s): Commercial capability and contract management, Cost reduction and affordability, Managing major projects

Department(s): Ministry of Defence

Published:
26 Jun 2020

Managing the BBC’s workforce

The BBC’s approach to managing its workforce shows definite progress. It will need to monitor workforce changes carefully to build on the recent progress it has made.

Sector(s): Arts, media and sport

Performance Improvement area(s): Cost reduction and affordability

Department(s): Department for Digital, Culture Media and Sport

Published:
26 Apr 2017

Progress on the government estate strategy

Departments have continued to reduce their estates and government is now getting better value for money. The Government Property Unit, however, has not yet made much progress towards its more challenging objective of creating an integrated estate.

Sector(s): Government, efficiency and transparency

Performance Improvement area(s): Cost reduction and affordability, Financial management, Strategic centre of government

Department(s): Cabinet Office

Published:
25 Apr 2017

The quality of service for personal taxpayers

HMRC aimed to move more customers online thereby reducing staff costs but significant numbers of staff were let go before technical improvements were completed leading to a collapse in service quality in 2015. Services have since improved.

Sector(s): Tax

Performance Improvement area(s): Cost reduction and affordability, Customer management, Digital service delivery, Transforming public services

Department(s): HM Revenue and Customs

Published:
25 May 2016

Shared service centres

Government’s programme to transfer back-office functions to two shared service centres has made savings but has not achieved value for money to date.

Sector(s): Government, efficiency and transparency

Performance Improvement area(s): Cost reduction and affordability, Strategic centre of government

Department(s): Cabinet Office

Published:
20 May 2016

Managing the welfare cap

The welfare cap is encouraging a greater understanding of spending on some benefits and tax credits across government, but it is important that processes for managing the cap are reliable.

Sector(s): Central Finance and Treasury, Government, efficiency and transparency, Welfare, Pensions and Employment

Performance Improvement area(s): Cost reduction and affordability, Financial management, Oversight of service delivery

Department(s): Department for Work and Pensions

Published:
27 Apr 2016