§ Bob SpinkTo ask the Chancellor of the Exchequer what action he is taking to(a) increase the productivity and (b) cut the costs of his Department and its agencies and non-departmental public bodies. [171882]
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§ Ruth KellyThe Chancellor of the Exchequer announced in the Budget that the Government are setting a stretching but realistic target for the whole public sector to deliver efficiencies of 2.5 per cent. a year over the three years of the 2004 Spending Review period. Meeting this target would deliver efficiency gains equivalent to £20 billion a year by 2007–08. The administration costs of all Departments are to be capped at or below the 2005–06, nominal level for 2006–07 and 2007–08. The Budget set out detailed proposals for meeting this target in relation to DWP, IR and HMCE.
All Departments continue to work closely with Sir Peter Gershon to prepare detailed efficiency proposals for consideration in the 2004 Spending Review. Departments' agreed efficiency programmes will be published in parallel with the Spending Review settlement.