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Departmental Coordination

Volume 462: debated on Monday 25 June 2007

To ask the Chancellor of the Duchy of Lancaster what shared service initiatives have been completed within Government; and what assessment she has made of their effectiveness. (145068)

Shared Services is a key part of Transformational Government and there has been significant progress across central Government. MOD, DWP, HMRC, Prison Service, DfT and DEFRA have all established shared HR and Finance Services.

The NHS Shared Business Service has saved over 100 trusts an average of 34 per cent. of the cost of processing finance transactions through shared finance services. It is on track to deliver savings of more than £220 million over 10 years. The Ministry of Defence’s People, Pay and Pensions Agency is reducing costs at the same time as improving quality. Through sharing and related reforms, the Department is expecting a net benefit of over £300 million during the next 10 years. Transport for London saved approximately 30 per cent. on its human resources spend in the first year of operating its shared service centre.

Government are looking to share a variety of additional services across Government. For example, the new Cabinet Office IT contract is available to other Departments and public sector organisations.