Doing more with less
18 October 2009
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In order to get public finances back into balance by 2015-16 the CBI is proposing radical reforms to the way public services operate to achieve the savings required.
Doing more with less shows how by using new technology and competition, eliminating waste and inefficiency, and tackling unaffordable pensions and pay head on, crude cuts to frontline staff and vital public services can be avoided while achieving significant cost savings. The report sets out five core questions against which government at all levels should review any public service provision:
- Is this something government needs to continue?
- Is this something government can afford to continue?
- Is this something that could be done more efficiently?
- Is this something that could be delivered better by the private or third sectors?
- Is this something that can be re-engineered to deliver a better service?
This report draws upon the experiences of CBI members companies working successfully with government to improve schools, hospitals, prisons, police services, welfare provision and other local services. It makes five recommendations for a credible strategy to restore public finances:
- radically re-designing the way public services are delivered, including making use of new and proven technologies, as well as increasing competition, which could achieve £63bn of savings by 2015-16
- improving workforce management by adopting good private sector practice, including better management of staff sickness and temporarily freezing the public sector pay bill. This could yield £27bn savings by 2015
- allowing the private sector to provide non-core activities, such as back-room functions. This could save £30bn by 2013-14.
- cutting waste from within government could save a minimum of £16bn by 2015-16, while pooling local authority budgets to avoid duplication of services could reap further savings
- funding mechanisms should be reformed with greater use of co-funding, individual budgets and pooling funds at local levels.
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