Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Accepted
Significant potential for efficiency savings remains untapped in many government functions
Recommendation
We noted that, of the reported £3.4 billion savings, the overwhelming majority was attributed to a small number of functions. We therefore asked what work the Cabinet Office has undertaken to identify whether more savings could be achieved from elsewhere. The Cabinet Office explained that a lot of work was being done by functional experts and departments was regarded as business as usual, so was not counted as part of the efficiency savings achieved. It recognised that savings were heavily dependent on the Commercial, Counter-fraud and Debt Management Functions, and “there are more savings than that out there”. It told us that it thought there was a lot of potential to make savings in other functions and that it needed to calculate these savings, ensure they met the audit standards, and publicly report them.18
Government Response Summary
The government commits to collaborating with HMT to establish and publish savings targets across all functions for the 2023-24 exercise. It will report these targets to the Committee in October 2024 and publish them in Spring 2025, ensuring functions identify and report robust, auditable savings.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: end October 2024 4.2 The Cabinet Office will work with HMT to set savings targets (cash releasing and non-cash releasing savings) across the functions to work towards for the 2023-24 savings exercise due to be published in Spring 2025. The Cabinet Office will report back to the Committee on these targets in October 2024. 4.3 The government agrees with the Committee’s recommendation. Target implementation date: end June 2025 4.4 The Cabinet Office will ensure functions report savings that are commensurate with the savings target set, publishing this in the Spring 2025 efficiency and savings publication after they have been audited by the Government Internal Audit Agency (GIAF). 4.5 The Cabinet Office will use the new targets to encourage Functions to identify robust savings that are able to meet rigorous GIAF standards.