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Whitehall saving claims queried | |
(30 minutes later) | |
Government claims to have made £13.3bn in efficiency savings carry a "significant risk of inaccuracy", the public spending watchdog has warned. | Government claims to have made £13.3bn in efficiency savings carry a "significant risk of inaccuracy", the public spending watchdog has warned. |
Ministers are halfway through a three-year programme to save £21.5bn and say they have achieved 62% of this. | Ministers are halfway through a three-year programme to save £21.5bn and say they have achieved 62% of this. |
But the National Audit Office (NAO) said departments had "more to do to show that all reported gains are both genuine and sustainable". | But the National Audit Office (NAO) said departments had "more to do to show that all reported gains are both genuine and sustainable". |
The government said it was "delivering on... efficiency ambitions". | The government said it was "delivering on... efficiency ambitions". |
The NAO report found there was "clear evidence of positive change". | The NAO report found there was "clear evidence of positive change". |
For instance, there had been a £1.2bn saving in procuring medicines for the NHS. | For instance, there had been a £1.2bn saving in procuring medicines for the NHS. |
'Measurement issues' | 'Measurement issues' |
But the report suggested a wide difference in the economies claimed. | But the report suggested a wide difference in the economies claimed. |
While the Home Office and the Department for Work and Pensions reported meeting 90% of their efficiency targets by September 2006, the Department for Education and Skills reported only 28%. | While the Home Office and the Department for Work and Pensions reported meeting 90% of their efficiency targets by September 2006, the Department for Education and Skills reported only 28%. |
The NAO said 51% of total departmental savings claims had "some measurement issues and uncertainties". | The NAO said 51% of total departmental savings claims had "some measurement issues and uncertainties". |
Meanwhile, 23% "either do not yet demonstrate efficiency or the reported gains may be substantially incorrect". | Meanwhile, 23% "either do not yet demonstrate efficiency or the reported gains may be substantially incorrect". |
Comptroller General Sir John Bourn - head of the NAO - said just 26% of the reported efficiency savings "fairly represent efficiencies made". | Comptroller General Sir John Bourn - head of the NAO - said just 26% of the reported efficiency savings "fairly represent efficiencies made". |
He added that, since the NAO had last looked at savings a year earlier, "progress has been made in improving the robustness of how gains are measured". | He added that, since the NAO had last looked at savings a year earlier, "progress has been made in improving the robustness of how gains are measured". |
Job cuts | Job cuts |
"But many reported efficiency gains still carry a significant risk of inaccuracy." | "But many reported efficiency gains still carry a significant risk of inaccuracy." |
The report said some departments were "finding it hard to demonstrate fully that quality [of services] has not been affected" by savings. | The report said some departments were "finding it hard to demonstrate fully that quality [of services] has not been affected" by savings. |
Sir John said: "In this spending period, there is more to do to show that all reported gains are both genuine and sustainable." | Sir John said: "In this spending period, there is more to do to show that all reported gains are both genuine and sustainable." |
The report said government claims to have reduced staffing numbers by 45,551 of its 70,000 target were "broadly robust". | The report said government claims to have reduced staffing numbers by 45,551 of its 70,000 target were "broadly robust". |
But differences in the dates being used for comparisons "diminish confidence in what has been achieved". | But differences in the dates being used for comparisons "diminish confidence in what has been achieved". |
Shadow chancellor George Osborne said the efficiency savings were "never properly driven through" by Chancellor Gordon Brown. | |
Edward Leigh, the Conservative chairman of the Commons public accounts committee, said: "Don't bet your house on the truth of claims by the government that it has already achieved an annual £13.3bn worth of efficiency savings." | Edward Leigh, the Conservative chairman of the Commons public accounts committee, said: "Don't bet your house on the truth of claims by the government that it has already achieved an annual £13.3bn worth of efficiency savings." |
'Robust' | 'Robust' |
The CBI said its research showed 88% of businesses did not believe the government would hit its savings targets. | The CBI said its research showed 88% of businesses did not believe the government would hit its savings targets. |
These were set out in the 2004 Gershon Review of public spending. | These were set out in the 2004 Gershon Review of public spending. |
It suggested outgoings could be cut by improving procurement practices and use of modern technology, cutting bureaucracy and moving staff away from back-office functions and onto the frontline. | It suggested outgoings could be cut by improving procurement practices and use of modern technology, cutting bureaucracy and moving staff away from back-office functions and onto the frontline. |
Chief Secretary to the Treasury Stephen Timms said: "These savings are robust, and with efficiency gains now of around £15bn, we continue to show substantial progress towards our target. | Chief Secretary to the Treasury Stephen Timms said: "These savings are robust, and with efficiency gains now of around £15bn, we continue to show substantial progress towards our target. |
"And, most importantly, these savings free up resources to invest in schools, hospitals and other vital front line services." | "And, most importantly, these savings free up resources to invest in schools, hospitals and other vital front line services." |
A Treasury spokesman added: "The National Audit Office has been very clear that good progress has been made in measuring efficiency gains. | A Treasury spokesman added: "The National Audit Office has been very clear that good progress has been made in measuring efficiency gains. |
"With our measurement guidance issued in the last year, systems have improved further, embedding a strong emphasis on assuring service quality." | "With our measurement guidance issued in the last year, systems have improved further, embedding a strong emphasis on assuring service quality." |