£6 billion government efficiency savings to be announced next Monday

What do we think? Where will the money come from?

  • Have to be some delays / cancellations on more major (probably IT and some capital) programmes as well as those already announced like ID Cards  (£1.5 billion?)
  • A freeze or drastic reduction in government advertising for rest of the year  (£200M?)
  • A freeze on all public sector recruitment outside 'front line' staff (this is the ONLY way to make savings in staff costs this year - redundancy just takes too long) (£2.5 billion?)
  • Reductions in higher public sector salaries?  Quite possible as a gesture ( maybe £100M?)
  • I don't know whether it is feasible - or legally possible even - to reduce the funding for schools and local authorities this far into the year.  But I suspect something has to comet out of the devolved budgets or benefits have to be cut in order ohit the £6B.  If it is feasible, a very small percentage cut to be funded by efficiency savings / better procurement or similar. (£1.5 billion)
  • And of course...cuts in consulting spend! (£300M)

That should just about do it....

First Voice

  1. Andy Davies:

    English higher education is bracing itself, having already been landed with £915m of cuts over 3 years. I’m anticipating a very deep cut from the emergency budget, whether it be in capital spending, research grant funding, the recurrent teaching grant, or all three, perhaps by as much as £500m. Universities are hoping it’ll be linked to an easing of the cap on tuition fees. With Government plans to clamp down on student visas and private research funding slow to recover from the recession, our ten-year Golden Age is coming to a very sudden end.

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