HC Deb 27 May 2004 vol 421 cc1747-8W
Tom Brake

To ask the Secretary of State for International Development what administration cost savings were achieved by his Department in each year since 1997, expressed(a) in cash terms and (b) as a percentage of the departmental budget; and if he will make a statement. [175748]

Mr. Gareth Thomas

Separate figures are not available for past efficiency improvements. DFID has however sought to promote efficiency, for example through internal Service Level Agreements. From financial years 1996–97 to 2002–03, the proportion of the development budget used for administration remained constant at 2.8 per cent. of the total programme, despite a significant widening of DFID's responsibilities in areas that do not entail significant programme spending.

A new definition of administration costs was introduced during 2003–04 in order to manage operating costs more efficiently and increase transparency. This incorporated substantial charges previously paid from the programme budget. Under Resource Accounting, from 2003–04 the administration budget also incorporates capital charges previously accounted for separately. Between 2002–03 and 2005–06, costs under the new definitions will have fallen from 5.8 per cent. (£197 million) to 5.1 per cent. (£236 million) as a proportion of the programme.

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