By Vivienne Russell | 12 October 2011
The Cabinet Office group set up to find savings across Whitehall has made a ‘good start’, MPs said yesterday.
But significant cultural and institutional changes are needed to embed this progress, according to the Public Accounts Committee. In a report, the PAC praises the clear reporting provided by the Efficiency and Reform Group, which it says is a ‘welcome improvement on previous efficiency initiatives’.
Savings of £3.75bn have been reported so far, but sustaining them would be a challenge, the report says.
Committee chair Margaret Hodge said many of the group’s early successes could be put down to ‘key players in government pulling in the same direction’ towards a high-profile target.
She added: ‘In the long term, there will need to be a much deeper change in the cultural and institutional structure of government.
‘The group has a huge task ahead in making an impact beyond Whitehall. About half of the £40bn efficiency savings required over the next three years will have to be achieved by local public sector bodies over which the group has no direct control.’
