Frontline services could be ‘main victim’ of savings drive
By Peter Wozniak
Frontline services will bear more of the brunt of cuts than previously thought, because government departments are incapable of making the savings asked of them, a committee has warned.
The Public Accounts committee gave its verdict today on the 2007 spending review today, arguing that if lessons in getting value for money are not learned from that process then frontline services are at “serious risk” under the new government’s austerity drive.
Margaret Hodge, the committee chair, said: “Departments were in general unable to make real value for money savings of three per cent a year following the 2007 comprehensive spending review – and that was at a time of increasing budgets.
“Now that much more radical cost-cutting measures are required across government… there is a serious risk that, to reduce costs, departments will rely solely on cutting front-line services.”
The report found that of the £35 billion worth of efficiency savings Whitehall departments were asked to make in 2007, only £15 billion were delivered.
Even these were questionable, with just 38% described as “legitimate, value for money savings”.
When George Osborne announced the spending review measures in October, his statement was peppered with references to efficiency savings from “backroom functions”.
The government has staked much of its justification for the cuts on preserving ‘frontline’ services which interact with the public.
Today’s report implies the efficiencies the chancellor has asked for may not come as easily as he hopes – and has potentially disastrous implications for the coalition, unless it can show the civil service has undergone a massive improvement in capability since 2007.
The committee called for immediate changes to maximise departments’ ability to implement the £80 billion of spending review cuts, including penalties for civil servants who do not deliver on their value for money commitments.
