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Savings drive 'smoke and mirrors' Savings drive 'smoke and mirrors'
(40 minutes later)
The government's efficiency drive has been dismissed as "smoke and mirrors" by the chairman of the Commons public accounts committee.The government's efficiency drive has been dismissed as "smoke and mirrors" by the chairman of the Commons public accounts committee.
Tory MP Edward Leigh said his committee had "cast doubt on the reliability" of many of the savings claimed.
Ministers want Whitehall to save £21.5bn by 2008 through job cuts and changes to working practices.Ministers want Whitehall to save £21.5bn by 2008 through job cuts and changes to working practices.
But Tory MP Edward Leigh said his committee had "cast doubt on the reliability" of nearly 75% of the efficiency savings achieved. The Treasury said it had delivered "the most substantial programme of its kind" and had already saved £23bn.
The Treasury said it had saved £23bn and would save another £30bn by 2010. In a debate on his committee's work on Thursday, Mr Leigh said: "Smoke and mirrors are the last thing we need. Efficiency savings are nothing if they do not free up hard cash or improve delivery."
'Adverse impact'
He added: "There is evidence that some efficiency projects may be having an adverse impact on service quality."
The Gershon Review set a government target of axing 84,000 Whitehall jobs and saving £21.5bn for 2008.The Gershon Review set a government target of axing 84,000 Whitehall jobs and saving £21.5bn for 2008.
But the public accounts committee has said Whitehall job cuts were a "poor tool" for saving money. But the public accounts committee has previously reported that Whitehall job cuts were a "poor tool" for saving money and said most claimed efficiencies "did not stand up to scrutiny".
'Lazy thinking'
In February the Liberal Democrats said the government had spent £430m on making civil servants redundant.
In a debate on his committee's work on Thursday, Mr Leigh told MPs: "Smoke and mirrors are the last thing we need. Efficiency savings are nothing if they do not free up hard cash or improve delivery."
I think we do provide a voice for the taxpayer Edward LeighPublic accounts committee chairmanI think we do provide a voice for the taxpayer Edward LeighPublic accounts committee chairman
He added: "There is evidence that some efficiency projects may be having an adverse impact on service quality." For example some departments had reported gains but not included additional costs, while others were not genuine "efficiency savings" as they had led to a deterioration of services.
He also said ministers' "lazy thinking" in ploughing money into the NHS but not monitoring productivity meant "not getting enough bang for this barrage of bucks". In February the Liberal Democrats also said the government had spent £430m on making civil servants redundant.
Mr Leigh said his committee "helped to give a voice to Parliament and through us to the citizen in the delivery of public services". In Thursday's debate Mr Leigh said his committee "helped to give a voice to Parliament and through us to the citizen in the delivery of public services".
"Where services fail those in greatest need I think that we do provide a voice for the vulnerable, where inefficient spending fails those who contribute most in terms of their taxes, I think we do provide a voice for the taxpayer.""Where services fail those in greatest need I think that we do provide a voice for the vulnerable, where inefficient spending fails those who contribute most in terms of their taxes, I think we do provide a voice for the taxpayer."
'Substantial programme''Substantial programme'
Another committee member, the Labour MP Austin Mitchell, said the committee played an important role in investigating how taxpayers' money was being spent.Another committee member, the Labour MP Austin Mitchell, said the committee played an important role in investigating how taxpayers' money was being spent.
He said one recurring theme from the committee's reports was the "constant tendency to over-reach and try to do too much", adding ministers sometimes tried to impose more on departments than they could cope with.He said one recurring theme from the committee's reports was the "constant tendency to over-reach and try to do too much", adding ministers sometimes tried to impose more on departments than they could cope with.
He highlighted the problems with rural payments to farmers as a good example - in which thousands of farmers failed to get their EU subsidies on time. Some said the months of delay had driven them to despair and even bankruptcy.He highlighted the problems with rural payments to farmers as a good example - in which thousands of farmers failed to get their EU subsidies on time. Some said the months of delay had driven them to despair and even bankruptcy.
In response to Mr Leigh's comments about the efficiency drive, a Treasury spokesman said: "We have now delivered over £23bn of ongoing efficiency savings as part of the Gershon programme.In response to Mr Leigh's comments about the efficiency drive, a Treasury spokesman said: "We have now delivered over £23bn of ongoing efficiency savings as part of the Gershon programme.
"Independent experts have now recognised that this is the most substantial programme of its kind in the last 20 to 30 years and one that has made a real difference in delivering better value for money for the taxpayer."Independent experts have now recognised that this is the most substantial programme of its kind in the last 20 to 30 years and one that has made a real difference in delivering better value for money for the taxpayer.
"And we will go further over the coming spending period with another £30bn of savings by 2010.""And we will go further over the coming spending period with another £30bn of savings by 2010."