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Office of Government Commerce

Volume 458: debated on Thursday 29 March 2007

To ask the Chancellor of the Exchequer, if he will estimate (a) the savings delivered to the Exchequer by the activities of the Office of Government Commerce (OCG) in each year since it was established and (b) the savings made on each OCG programme in each year. (107777)

The Office of Government Commerce (OGC) reports against two Public Service Agreement targets, and the following tables detail the savings made against these two major programmes.

Value for Money

OGC reports value for money (vfm) gains in central Government civil procurement through improvements in the success rate of programmes and projects and through other commercial initiatives:

£ million

Total vfm gains

Direct Negotiations

Joint Procurement

Reduced process costs

Gateway and other improved contract or asset management

2005-06

2600

806

484

79

1,231

2004-05

2262

677

410

113

1,062

2003-04

2086

655

466

178

787

2002-03

767

542

114

52

59

2001-02

401

220

86

40

55

2000-01

414

304

22

36

52

The Efficiency Programme

The 2004 Spending Review set targets for the Government to achieve annual efficiency gains of over £20 billion and gross workforce reductions of more than 84,000

by 2007-08.

Progress is as follows:

Efficiency Gains (£ billion)

Comments

2005-2006 - year one of programme

9.8 (by 31 March 2006)

Figure published in HMT CSR 07 document (13 July 2006)

2006-2007 - year two of programme

115.5 (by 31 Dec 2006)

Figure announced in budget 2007

1 Cumulative figure covering first 21 months of programme.