The local government target is to achieve, relative to the 2004/5 baseline, total annual efficiency gains in local government of at least £6.45bn by 2007/8.

This document sets out what those targets are and how best they can be measured and monitored. It also explains how the efficiency gains can be reported, with the self-assessed Annual Efficiency Statement. It also includes various templates for record keeping.

Annex 1 contains descriptions of key workstreams highlighted by the Gershon Review in relation to local government procurement, corporate services, productive time and transactions.

To order a hard copy of this publication please email:

Visit the local government website


  • Introduction
  • 2.5% annual efficiency gains from councils
  • Assessing local government efficiency gains
  • Mechanism for reporting efficiency gains
  • Timescale for future actions
  • Annexes