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Spending Review
PN C1
12 July 2004
Stretching efficiency programmes will deliver gains of over £20 billion a year by 2007-08, increasing resources available for front-line priorities, Chancellor Gordon Brown announced today, following the publication of the Independent Review of Public Sector Efficiency led by Sir Peter Gershon.
Building on announcements made in the Budget and the Lyons Review, the programmes set out plans for a reduction of over 80,000 civil service posts, and for the relocation of 20,000 posts out of London and the South East.
The efficiency programmes have been unveiled as part of the 2004 Spending Review package alongside spending allocations for Government priorities, and the new set of Public Service Agreements, which detail the key outcomes the Government aims to achieve over the coming years.
Publishing his report, Sir Peter Gershon said
”I am pleased to publish the results of my Review of public sector efficiency, and to endorse the announcements about efficiency made by the Chancellor today in the 2004 Spending Review. Implementation of the results and recommendations of my Review will help ensure that substantial resources are released to implement front-line activities. To go further or faster than the savings that have been agreed with departments would put at risk the delivery of public services. The proposals and reforms published today will also support a modern, professional Civil Service and wider public sector workforce continuing to provide invaluable functions in the delivery and support of front-line public services.”
Responding to Sir Peter’s report, the Chancellor said
“I am grateful for the thorough and detailed work that Sir Peter and his team have conducted. Alongside the spending allocations announced today, this announcement reaffirms the Government’s commitment to providing excellent services for the public, with more resources directed to the front line, whilst ensuring value for money for the taxpayer. My Cabinet colleagues and I shall be working closely to deliver this important agenda”.
Announcing a reduction of over 80,000 civil service posts, the Chief Secretary to the Treasury, the Rt Hon Paul Boateng MP, said
”This Spending Review sustains our commitment to developing a modern and professional public sector workforce in line with Sir Peter Gershon's recommendations. We shall continue to radically reform the public sector workforce and Whitehall by using the most up to date processes and technology. By 2008 we will have increased workforce numbers in health, education and criminal justice. We will have streamlined the administration of government with a reduction of 84,000 posts in support functions. Thirteen thousand, five hundred of these posts will move to key frontline services. In combination, these changes will result in a workforce well placed to meet customer needs and our challenging delivery targets.“
Following the announcement of detailed proposals for relocation of public sector posts out of London and the South East, Sir Michael Lyons said
“I am very pleased to see that the Government has responded so positively to the recommendations contained in my report on public sector relocation. I welcome the clear arrangements for taking them forward in the context of greater efficiency and of improved public service delivery. I will watch progress with particular interest.”
In light of the report “Releasing Resources to the Front Line: Independent Review of Public Sector Efficiency”, published as part of the 2004 Spending Review the Government is today announcing:
