Government have committed to achieving at least 3 per cent. value for money savings per year across central and local government over the 2007 comprehensive spending review (CSR07) period of 2008-09 to 2010-11. As their contribution to this challenge, councils in England are expected to achieve at least £4.9 billion cash-releasing efficiencies. The local government value for money delivery plan (www.communities.gov.uk/publications/localgovernment/deliveringvaluefor money) sets out a trajectory of £1.5 billion cumulative savings by the end of March 2009 and £3.2 billion by the end of March 2010. There are no expectations with respect to non- cashable efficiencies in CSR07.
There are no mandatory efficiency targets for individual councils, although targets have been agreed as part of seven local area agreements. The value of efficiencies achieved by all English councils and fire and rescue services will be published on and with council tax bills from this year so that citizens can see what progress is being made by their local authorities.
No estimate of the level of exposure of local authorities' pension funds and deposits to the Madoff hedge fund has been made. With regard to pension funds, investment/funding strategy and individual stock selection is a matter for the 89 individual pension funds in England and Wales, who are accountable for their decisions.
Under the Local Government Act 2003, local authorities are responsible for their own investment decisions. The Department's guidance on local government investments is available at:
http://www.local.communities.gov.uk/finance/capital/data/lginvest2.pdf