Source · National Audit Office

Cabinet Office functional savings

The Cabinet Office reports efficiency savings across shared government functions, but they could implement a more robust approach.

Published: 25 Oct 2023 Recommendations: 6 Type: Value for Money NAO confirmed: 3 Department: Cabinet Office
Dept: Cabinet OfficeCross-government Topics: Commercial and financial managementEfficiency and savings nao.org.uk →

Recommendations

6 items
6 accepted 6 implemented

Recommendation 1

Addressee: Cabinet Office · Source location: Page 10, 22 a

a) be clear about what savings it is reporting, to what extent central functional teams contributed to the savings, and make sure it is consistent in its application of this approach with each function

Response position: Accepted

Delivery: Implemented · 01/2025 · Confirmed by NAO

Recommendation 2

Addressee: Cabinet Office · Source location: Page 10, 22 b

b) include in its report an explanation of:
? the challenges and limitations of calculating and reporting efficiencies,
? how it intends to use the figures produced by functions,
? why the different methodological approaches used are robust enough
to support their intended purpose, and
? the extent of the assurance provided by GIAA over the figures in the
functional efficiency savings

Response position: Accepted

Delivery: Implemented · 01/2025 · Confirmed by NAO

Recommendation 3

Addressee: Cabinet Office · Source location: Page 10, 22 f

f) more broadly, as Cabinet Office continues to refine its reporting of efficiencies,
it should work with HM Treasury to make sure that their approaches align where possible and are complementary, and that lessons learnt and good practice from both exercises are being shared across government

Response position: Accepted

Delivery: Implemented · 12/2025

Recommendation 4

Addressee: Cabinet Office · Source location: Page 10, 22 c

c) set out the approach it expects functions to take in identifying and calculating efficiencies, based on the good practice set out in Figure 7 of this report and considering the Government Efficiency Framework

Response position: Accepted

Delivery: Implemented · 06/2025

Recommendation 5

Addressee: Cabinet Office · Source location: Page 10, 22 d

d) consider broadening its functional savings exercise to include all functions

Response position: Accepted

Delivery: Implemented · 06/2025

Recommendation 6

Addressee: Cabinet Office · Source location: Page 10, 22 e

e) work with the functions to ensure GIAA?s recommendations are responded to in a timely way in accordance with GIAA?s expected timescales

Response position: Accepted

Delivery: Implemented · 01/2025 · Confirmed by NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.