23 September 2005
The architect of Whitehall's £40bn savings plan believes ministers will seek to achieve public sector efficiencies beyond the target date of 2008 because of the political imperative to restrain national spending.
Sir Peter Gershon, author of the eponymous 2004 Treasury review, this week played down fears that the government's current efficiency focus would be dropped once Whitehall achieved its short-term target.
Critics had dismissed the review at the time as temporary and politically motivated in advance of the forthcoming general election.
But Gershon, speaking at a conference hosted by the Institute of Economic Affairs on September 20, looked beyond the 2005-08 Spending Review period covered by his study and identified further areas for improvement across Whitehall and local government.
He said: 'The pressure will be on to keep finding efficiencies because the government will not be able to fund all the revenue for sustained investment in the public sector through tax increases or through borrowing.'
Citing a recent statement by Des Browne, chief secretary to the Treasury, who promised to embed 'ongoing efficiency improvements' across departments, Gershon added: 'The government has sent a signal about what is going to happen beyond 2008.'
Despite requiring departments to meet tough targets by that date, Gershon said there would still be 'significant opportunities' for additional savings through procurement, investment in information and communications technology, the further relocation of Whitehall staff (beyond the 20,000 posts already identified by Sir Michael Lyons) and changes to staff working practices.
On the potential for policy, funding and regulation improvements beyond the 2004 Spending Review, he also indicated that a further review would be required to assess how central government links up with councils and non-departmental bodies.
'This area needs further examination. There remains the opportunity to analyse key delivery chains… that begin in Whitehall and spread outwards. There are huge complexities in these chains that could be looked at,' he warned.
But audience members challenged Gershon's study. NHS staff said his review had neglected 'to take full account' of the impact on services such as nursing.
Crispin Ellison, director of consultancy Corven, cast doubt on public bodies' ability to deliver Gershon's 2008 targets. He claimed the targets were 'too centralist' and 'ten years behind private sector aims'.
'It is focused too heavily on IT and procurement and not on encouraging the people delivering services to assume responsibility for efficiency,' Ellison warned.
Courts advisory body faces strike action after 'tight' grant award
A financial crisis at the family courts advisory service has left managers unable to implement vital IT reforms and could lead to a staff strike.
Civil servants at the Children and Family Court Advisory and Support Service (Cafcass) have told Public Finance that they are consulting on the possibility of a walk-out that 'nobody really wants' after an 'incredibly tight' finance settlement from the Department for Constitutional Affairs.
Senior staff said that the shortage of cash from the DCA since April had already caused the shelving of a much-needed IT network upgrade, which would have made all Cafcass records electronic.
Union representatives, including those from the National Association of Probation Officers (Napo), were set to hold talks with Cafcass managers this week to attempt to prevent a strike ballot over the lack of progress on pay negotiations. The DCA has been unable to give Cafcass a pay remit on which to base negotiations, Napo claimed last week.
Cafcass chief executive Anthony Douglas acknowledged the extent of the problems in a letter sent to staff. 'This year's budget is incredibly tight as our grant for the financial year did not include inflation,' he wrote in August.
'We do not think additional funding will come our way, though we will continue to press our case. This means we have to take a number of remedial measures to ensure that we stay within budget.
'I do appreciate the extra pressure this will bring to already overstretched staff at all levels.'
PFsep2005
