§ Mr. Maplesasked the Chancellor of the Exchequer what steps have been taker by his Department since May 1979 to improve its efficiency; what has been the result; what further steps are currently being taken to improve efficiency; what the results are expected to be; and what output criteria have been developed by his Department to help measure its efficiency.
§ Mr. HayhoeSince May 1979 the Treasury has conducted a wide range of reviews, studies and inspections aimed at improving its internal operations and obtaining better value for the taxpayers' money. These include policy reviews. Rayner scrutinies and multi-departmental reviews, as well as those mounted as part of the continuous work of staff inspection, management services and internal audit. They have contributed to the increased efficiency which has been reflected in reduced manpower arid the containment of running costs. Since the reorganisation of the central Departments in November 1981 the number of staff in post has been reduced by over 18 per cent to 3,405 on 1 July 1984—although the Department is currently recruiting to fill vacancies in key areas. In the years 1981–82 to 1982–83 — the last for which figures are available—the increase in gross running costs was 4.4 per cent. compared with a rate of inflation over the same period of 7.1 per cent. Comparable figures for earlier years are not available because of the reorganisation.
Twenty Rayner scrutinies and other reviews have been completed over the last five years or are currently under way. These include major reviews of the role and functions of CCTA and CISCO witch together account for nearly one half of Treasury staff. In CCTA changes have 'peen recommended to ensure that Departments are responsible for identifying and meeting their own IT requirements. These changes will be worked out fully in a corporate plan which will set out: the strategic direction of CCTA over the next few years; subordinate objectives for each part of the business; the resources with which CCTA will work; and the development of effective management and personnel practices. The first corporate plan will be submitted to Treasury Ministers in the autumn of 1984. It 391W will be revised annually thereafter and will form part of the Treasury top management system. The review of CISCO led to the decision to move to trading fund status with the aim of reinforcing commercial disciplines. In addition, the simplification of the subsidy arrangements will promote greater competition in the provision of catering services by putting contractors on an equal footing.
Other examples include (a) an investigation into messenger services which resulted in net savings of 15 posts representing an annual cost of about £105,000; (b) the streamlining of clerical and typing support services, saving 50 posts, while the introduction of word-processing facilities has ensured the level of service is maintained; (c) improved training and organisation in the expenditure divisions; and (d) better co-ordination of the different capabilities for internal audit, staff inspection and information technology support which has also resulted in some reorganisation and costing of individual assignments.
Current reviews include a joint study with Cabinet Office (MPO) into the most cost-effective option for providing library services for the two Departments and a review of the operational role and function of the Treasury security guard. An annual programme of staff inspection is also maintained. Since October 1982 a total of 345 posts have been inspected with resulting reductions and regrading contributing a net saving of over £430,000 a year.
The Department is also developing its information technology strategy. This is based on the use of communicating word processors, moving gradually towards an integrated office system, and is designed to
1978–79 1979–80 1980–81 1981–82 1982–83 *1983–84 per cent. increase in cost terms 1983–84 1978–79 England Cash 11,037 13,000 15,682 17,472 19,054 20,451 Cost 11,037 11,125 11,306 11,461 11,698 11,991 8.6 Scotland Cash 1,437 1,719 2,156 2,405 2,584 2,745 Cost 1,437 1,471 1,554 1,578 1,586 1,609 12.0 Wales Cash 698 816 975 1,079 1,154 1,230 Cost 698 698 703 708 709 721 3.3 GDP deflator 1.0 1.1685 1.3870 1.5245 1.6288 1.7056 * 1983–84 figures not directly comparable with figures in table 2.18.2 of Cmnd. 9143 because they are based on revised estimates rather then budgets and because, in order to be consistent with earlier years, they are not adjusted for housing benefit classification changes included in the Cmnd. 9143 figures.