Government on track to save £8bn this year

Greg Hands M.P. has welcomed interim results showing that government departments have saved £3.1 billion so far this financial year. They are now expected to achieve efficiency savings of more than £8 billion during 2012/13.

The interim departmental results of £3.1 billion build on £5.5 billion of savings in 2011/12, and £3.75 billion during 2010/11. They include:

  • -£680 million saved through the moratorium on consultancy and the extension of existing consultancy contracts;
  • - £170 million saved from the in-year cost of the government’s property estate by exiting unnecessary properties and questioning each and every lease break;
  • - £295 million saved through the Government’s bulk-buying power, pooling spend on goods and services used by different departments; and
  • - £900 million saved in salary cost by reducing the size of the Civil Service through stronger controls on non-essential recruitment.

Minister for the Cabinet Office Francis Maude said: “Our fundamental programme of reform is changing the way Whitehall operates and driving efficiency savings to make every taxpayer pound count.

“Thanks to the hard work of hundreds of civil servants in the Efficiency and Reform Group and beyond we have helped departments save £3.1 billion so far this financial year, putting us on track to save £8 billion by year end.

“We have said we want to be saving £20 billion a year by 2015 and savings of this magnitude cannot come by trimming budgets here and there. That’s why we are working to transform Whitehall into a leaner, more efficient machine that manages its finances like the best-run businesses.”

Greg Hands M.P. added: “As we work to reduce the huge deficit left by Labour, every pound we can save protects services and the taxpayer. The big-spending waste we inherited has to end.

“These savings show excellent progress. This Government is getting our finances back under control and fulfilling its duties towards hard-working taxpayers.”