The Spending Reviews and Operational Efficiency Programme: strengths, weaknesses and lessons learned

Across government, the 2004 Gershon Spending Review reported £26.5 billion of annual efficiency gains against a target of £21.5 billion. As part of the 2007 Comprehensive Spending Review, a new ‘value for money’ target of saving £30bn by 2010-11 was established, subsequently raised to £35bn in the PBR07. As the new target is all cashable (as against 60% in Gershon) and net of set-up and ongoing costs (unlike Gershon) it is highly ambitious.

The Operational Efficiency Programme is looking at improving back office/IT, collaborative procurement, asset management/sales and property and a Public Value Programme has also been established to specifically focus on procurement.

How effective are these programmes in achieving spending reductions? What lessons can be learned from these exercises?

Panel

Prof. Colin Talbot, Manchester Business School

Ray Shostak, Head of the Prime Minister's Delivery Unit
Richard Douglas, DG Finance and Chief Operating Officer, Department of Health

Geoff Russell, former Partner at KPMG and currently Chief Executive of the Learning and Skills Council