Magazine article Public Finance

Research Casts Doubt on Efficiency Savings

Magazine article Public Finance

Research Casts Doubt on Efficiency Savings

Article excerpt

Teachers, doctors, nurses and police officers accounted for just 27% of the 585,000 rise in public sector employment between 1998 and 2004, according to a new study.

Research released by the freemarket Reform think-tank this week raises questions over government claims that Whitehall's £40bn efficiency drive will free extra cash for frontline services.

Corin Taylor, economics researcher at Reform, told Public Finance: 'In England's NHS, for example, the number of managers has increased three times as quickly as the number of nurses. These additional public sector resources have not even been used productively - Office for National Statistics figures show that productivity levels have decreased.'

Reform's figures follow confirmation from the ONS last week that public sector employment rose from 5.1 million in 1998 to 5.8 million in the first quarter of 2005 - an increase three times greater than in the private sector. …

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