The Efficient Government Initiative: a progress report


The Executive reported efficiency gains of £442 million in 2005/06



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The Executive reported efficiency gains of £442 million in 2005/06

9. The Executive reported that £442 million in efficiency gains had been achieved in 2005/06. Cash-releasing efficiency gains amounted to £386.6 million against the Efficient Government Plan target of £405 million and the proposed savings set out in the ETNs of £383.6 million. Although reported cash-releasing gains were less than expected, they exclude any made by Scottish Water because data was not available when the Executive reported. The Water Industry Commission subsequently reported that, compared to 2001/02, Scottish Water achieved cumulative efficiency gains of £947 million in the four years to 2005/06. Time-releasing efficiency gains amounted to £55.4 million against the proposed savings set out in the ETNs of £91.6 million. Most portfolios performed well against their savings plans although difficulties in measuring efficiency gains resulting from improved consultant productivity in the NHS meant that progress was less than expected.

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