Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Acknowledged
We questioned whether the government’s plan to save £500 million on operating costs by 2025...
Conclusion
We questioned whether the government’s plan to save £500 million on operating costs by 2025 was ambitious enough, noting that it only represents approximately a 2% reduction.55 Cabinet Office officials told us the target was a cautious one and that it might be able to save more. It explained that department officials had spoken to government organisations and were confident that £500 million could be saved from specific initiatives, including efforts by the GPA and the Department for Work and Pensions.56 It was possible that other government bodies, such as the NHS, might also be able to generate additional savings. The Cabinet Office also pointed out that it had recently revised the government’s facilities management requirements. The Cabinet Office expects the new requirement to lead to improved contracts and, given that facilities management accounts for £8 billion per year, some significant additional savings.57 54 Q 97 55 Q 96; Government Property Function, Government Property Strategy: 2022–2030, 13 56 Q 95 57 Qq 96 - 97 Managing central government property 15
Government Response Summary
The government notes the Committee’s conclusion that the plan to reduce the operating costs of the government estate is not sufficiently ambitious.
Government Response
Acknowledged
HM Government
Acknowledged
6. PAC conclusion: Government’s plan to reduce the operating costs of the government estate is not sufficiently ambitious. 6.1 The government notes the Committee’s conclusion. 6.2 The NAO confirmed the overall success of the 2018 Government Estate Strategy in unlocking savings and efficiencies. These included the overall reduction in size of estate since 2010 by 30%, with annual running cost savings of £1.6 billion. The recently published Government Property Strategy 2022-2030 sets out how we will continue to deliver savings and achieve better value for money while transforming the public estate and improving capability, standards and insights across the estate.