Background
In August 2003, the Prime Minister and Chancellor of the Exchequer asked Sir Peter Gershon to undertake a review of public sector efficiency. The review focused on the Government’s key objective of improving the efficiency of service delivery to release resources to fund the front line services that meet the public’s highest priorities. The review results were published in July 2004. The report identified auditable and transparent efficiency gains of over £20 billion by 2007-08 across the public sector.
The report emphasised the need to ensure that efficiency gains are not delivered at the expense of quality of service delivery. Service cuts should not count as efficiency gains. Rather, efficiency in the public sector should involve making the best use of the resources available for the provision of public services. Efficiencies should be achieved through reforms that:
- Maintain the same level of service provision while reducing the resources needed or deploying fewer staff
- Result in additional outputs, such as enhanced quality or quantity of service, for the same resources
- Remodel service provision to enable better outcomes.
Savings must be validated and evidenced, and should not be clawed back by central government; instead, resources released can be reinvested in frontline service delivery to the public.
Local savings
The Government accepted the recommendations and the Department for Communities and Local Government has set the targets for local government. Specifically for the fire service, these have been set at a national efficiency saving target of £105 million by April 2008. We have targeted £1.15 million as our contribution to the national target.
In compliance with the national reporting requirements, we have identified and reported the following efficiency savings that contribute to reaching this target:
Looking back: 2005-06 (including recurring gains from 2004-05)
- £294 000
Looking forward: 2006-07 (including recurring gains from 2004-05-06)
- £528 000
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