Wednesday, 31 October 2012

How do you waste £8billion?*

Its not often I get into number crunching on this blog but a figure really caught my eye this week: Government Whitehall departments have saved £3.1 billion so far this year and that is expected to top £8 billion by the end of the year.
Much of this is thanks to the under reported work of Cabinet Office Minister Francis Maude who has been busy quietly making efficiency saving in deepest darkest Whitehall.

Here's the inside track on just three areas Francis and team have been able to find those savings so far;
  • £680 million saved through the moratorium on consultancy and contingent labour spend and on extending existing consultancy contracts;
  • £170 million saved from reductions in the in-year cost of the government’s property estate, by exiting unnecessary properties, and questioning each and every lease break before they get extended;
  • £295 million saved by using government’s bulk-buying power and pooling spend on goods and services used by different departments.
This Government is having to make tough decisions on spending, but when you see some of the savings that can be made, simply applying good management and business sense, it does make you realise just how much of your wages Labour was pouring down the drain.

(*Answer: Ask Ed Balls)