Public sector is making efficiency savings but fresh approaches needed to deal with reduced future funding
Scotland’s public sector is continuing to find more efficient ways of delivering services, and its reported efficiency savings in 2008/09 exceeded the Scottish Government target by more than half.
However, an Audit Scotland report Improving public sector efficiency, says Scottish public bodies are facing the greatest financial challenge since devolution, and planning for two per cent savings will not be enough for the future.
In 2008/09, the public sector reported £839 million in savings against a target of £534 million, an achievement of 3.1 per cent savings compared with the two per cent target. Audit Scotland says public bodies should continue to develop and expand efficiency initiatives and develop new ways of delivering services.
To become more efficient and effective, public bodies should ensure they are budgeting for and spending on priorities, improving the information they have on productivity, quality and performance and extending their collaboration and joint working to deliver public services.
Deputy Auditor General for Scotland, Caroline Gardner, said:
“Scotland’s public sector continues to perform well in finding more efficient ways of working and trimming the amount of money needed to deliver services.
“However, planning to make two per cent savings each year will not be enough to bridge the gap between projected spending and funding over the next few years. Difficult decisions and new approaches will be needed to find other ways to increase efficiency and reduce public spending.”
Chair of the Accounts Commission, John Baillie, said:
“The drive to improve efficiency and productivity is not just an exercise for managers and service providers.
Most councils will need to continue to increase significantly the level of savings made. Strong leadership and engagement from elected members and senior managers is needed to challenge, monitor and support their councils in delivering efficiency and productivity improvements.”
