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Efficiency Savings

Volume 502: debated on Wednesday 16 December 2009

To ask the Secretary of State for Defence what efficiency savings have been achieved by his Department in each of the last 10 years; and how much of those savings has been spent on defence. (307406)

Efficiency commitments for financial years 1998-09 to 2001-02 were set out in the 1997 Strategic Defence Review. Further efficiency or value for money targets were set in each subsequent spending review. The way in which savings were measured varied over the period, and so direct comparisons between spending reviews is not possible.

Savings throughout the period were either used to relieve cost pressures or to allow more to be spent on Defence priorities.

Comprehensive spending review period 1998-99 to 2001-02

Cumulative savings (cash and resource, £ million)

1998-1999

594

1999-2000

1,126

2000-01

1,549

2001-02

2,012

2002 spending review efficiency programme 2002-03 to 2005-06

The MOD’s spending review 2002 included a target of year-on-year output efficiency gains of 2.5 per cent. from 2002-03 to 2005-06. No overall financial target was set, as savings were measured as the weighted average of performance against a set of process-related supported targets. MOD achieved the overall target of 10 per cent. savings, realised by several specific major change programmes.

Spending review 2004 for the period 2004-05 to 2006-07—‘Gershon’ efficiency programme

Cumulative annual savings (£ million) against April 2004 baseline

2005-06

1,485

2006-07

2,376

2007-08

3,045

Comprehensive review period 2007-08 to 2010-11—value for money programme

Annual savings (£ million) against April 2008 baseline

2008-09

650

Further information on all these savings, including details on how they were measured, can be found in MOD’s Annual Report and Accounts, which can be found at the following link:

http://www.mod.uk/DefenceInternet/AboutDefence/CorporatePublications/AnnualReports