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Achieving Efficiency Gains in Local Government

Date Uploaded: [ 18-04-2008 ]      Filesize: [ 396k ]

Efficiency gains - here to stay? 

There’s an old Chinese proverb that says “What you can’t avoid, welcome”.  Whilst local authorities haven’t avoided the need to make efficiency gains in the past, there is now much more clarity as to what’s expected of them. 

The Gershon Review requires gains of 2.5% each year for the next three years to 2007/08. The Office of the Deputy Prime Minister’s Efficiency Technical Note for Local Government clarifies that at least half these gains must be ‘cashable’. It also emphasises that efficiency ‘is not about cuts, but about raising productivity and enhancing value for money.’ 

Corporate Management Teams will be clear about where the bulk of these savings are to come from in the current year. But how many know where they’re going to get another 2.5% of gains the following year… and another 2.5% the year after that?

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