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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:

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Office building

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.

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Published:
25 Apr 2017
Online self assessment tax form

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.

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Published:
25 May 2016
Parliament Street and Whitehall road signs

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.

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Published:
27 Apr 2016
Mixed British bank Notes

Competitive and demand-led grants: good practice guide

The Cabinet Office estimates that government commits around £130 billion to grants each year – nearly 20% of all government spend. Grants are an important delivery mechanism for policy across government, not just centrally but also in agencies, local authorities and other bodies across the public sector.

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Published:
26 Nov 2015