The 2009 pre-Budget report sets out a number of areas where local government will be able to find efficiency savings over the next spending period, of £550 million per year by 2012-13.
Departments have worked closely to explore potential savings across the different functions and service areas of local authorities, and the scope for local initiatives that have delivered savings to be taken up more widely. It is for individual local authorities to make efficiencies based on local priorities and use of resources.
During the CSR 2007 period, local authorities have been free to use savings to hold down council tax or reinvest in other services. Councils do not have individual targets, but where a council is failing to deliver the level of efficiencies expected of the sector as a whole, we would expect the Regional Improvement and Efficiency Partnership and local government office to play an active role in supporting the council.
Budget 2010 provided an update on the £8 billion of Operational Efficiency Programme (OEP) savings and the £3 billion cross-cutting savings by 2012-13. Details of the proportion of these savings contributed by local government are available at:
The £8 billion annual OEP savings are savings to be delivered by 2012-13, against a baseline year of 2010-11. These are not cumulative savings. More detail on OEP savings numbers is available at: