Magazine article Public Finance

Departments Reveal Plans for Making Savings

Magazine article Public Finance

Departments Reveal Plans for Making Savings

Article excerpt

Whitehall departments have set out how they plan to achieve the government's efficiency target of £llbn a year by the end of the next Spending Review period.

The Department of Health revealed it is to save £4.3bn by 2012/13 - more than a third of the total savings. This includes: £1.5bn from improved procurement practices; £555m through reducing staff sickness in the NHS; and a further £70m from better use of the NHS estate.

The Department for Communities and Local Government is to save £200m, although a further £2.1bn will come from local government.

Of this £200m, £130m will be made by making back-office functions more efficient. The remaining £70m will come from reducing duplication with arm's-length bodies such as the Homes & Communities Agency and regional development agencies.

The Budget also revealed that the shared services functions provided by the Department for Work and Pensions - which already provides services such as payroll for 140,000 staff across three departments - will take on four new departments. …

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