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Local Government: Efficiency Savings

Volume 698: debated on Thursday 24 January 2008

asked Her Majesty's Government:

What were the efficiency savings found by each local authority in England in each of the last three years; and what proportion of their revenue budgets they amounted to in each of those years. [HL1430]

Councils in England report the value of efficiency gains that they have achieved annually in the Backward Look efficiency statement. The data for each of the last three years are published in spreadsheets online at www.communities.gov.uk/localgovernment/efficiencybetter/deliveringefficiency.

The spreadsheets also set out the efficiency target for each council. The target is based on a percentage of their baseline expenditure in 2004-05 (no target in 2004-05, 2.5 per cent in 2005-06 and 5 per cent in 2006-07).

Cumulative achievement of efficiency gains in the SR04 period by English councils collectively has been:

by the end of 2004-05: £760 million (1.89 per cent of 2004-05 baseline expenditure);

by the end of 2005-06: £1,931 million (4.81 per cent of 2004-05 baseline expenditure); and

by the end of 2006-07: £3,064 million (7.63 per cent of 2004-05 baseline expenditure).

asked Her Majesty's Government:

Whether the level of efficiency savings required to be made by a local authority in a particular year should take account of the savings already achieved in the previous year and in the past five years. [HL1431]

During the 2007 Comprehensive Spending Review period (2008-09 to 2010-11), there will be no mandatory targets for efficiency gains for individual councils in England. Efficiency targets will only exist where these are negotiated as one of the up-to-35 targets in each local area agreement (LAA). The negotiation of LAA targets will reflect the particular priorities for improvement in that area, hence any efficiency targets agreed will reflect past performance.

asked Her Majesty's Government:

What level of efficiency savings they are requiring from the government office in each English region in each year in the three-year period starting with the current year; and what proportion of the revenue spending this amounts to in each year. [HL1433]

The Government Office Network was set a target to deliver savings of 2.5 per cent per annum in CSR04. This equated to a required saving of £4.57 million in running costs in 2007-08. Under CSR07 the GO Network is required to make year-on-year running cost savings of 5 per cent per annum, in line with the settlement received by Communities and Local Government.

Across the GO Network this equates to savings in the first year of the CSR of:

Government Office

Cash savings (£000s)

Savings as a proportion of running costs (%)

North East

410.05

3.17

North West

418.87

2.43

Yorks and Humber

292.48

2.63

West Midlands

464.51

3.12

East Midlands

337.52

2.94

South East

393.99

2.88

East

447.15

3.59

South West

300.23

2.06

London

497.49

2.85

Central Infrastructure*

1,008

N/A

* The savings on central infrastructure relate to ICT and estates expenditure.

The allocations to individual Government Offices and for central infrastructure in respect of the next two years have yet to be agreed but will deliver the CSR savings required from the network as a whole.