Government efficiency savings 'even more vital in recession'

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A new report from the Treasury sub-committee outlines how public sector efficiency savings are essential.

In the Thirteenth Report of Session 2008-09, Evaluating the Efficiency Programme, it says that it is vital that all opportunities to deliver better value for money within the public sector are explored.

The report, while welcoming government efforts to improve efficiency, also stresses the importance of accurately evaluating the costs and savings of major efficiency programmes, and of maintaining staff morale.

Sub-committee chairman Michael Fallon MP said that the level of public debt had reached "gargantuan proportions" and the government must make efficiency steps as well as accounting more clearly for the savings it is making.

He added that the public sector must consider a radical solution to reduce the "burden on the taxpayer".

The report also said that if the costs and savings of efficiency programmes are not outlined, it isn't clear if they are value for money, and called for the government to establish a robust data collection processes at the start of future efficiency programmes.

Spending on training in the 450 local authorities in England and Wales was £540 million last year and about two-thirds of this was duplicated and therefore unnecessary, according to government figures.

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2009-07-29 09:22:40 © Moneyextra.com