This item was published during the term of a previous administration that ended in April 2007
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Council efficiency savings
28/12/2005
A report published today shows that councils are on track to outstrip their savings targets.
The report by the local government Improvement Service on Efficient Government Monitoring reveals efficiency savings from local government could be around £122 million in 2005-06 - much higher than the original target of £54.1 million.
Minister for Finance and Public Service Reform Tom McCabe said:
"This report is good news - I am delighted local authorities are on track to deliver £122 million of savings in the first year. It is still early days for our Efficient Government initiative and I expect the Executive, councils and the rest of the public sector to be judged on what we actually deliver.
"But this report shows councils are far outstripping their target of £54.1 million and demonstrates local authorities recognise the benefits Efficient Government will deliver. This is a great start - but it is a continuing challenge and we will continue to work together to build on this excellent start.
"There is no doubt it is a win-win scenario for all - more efficient and effective public services for the people of Scotland and more frontline resources for councils."
The overall target for Scottish Local Government is £323m by 2007-08 of which £195m or 2.5 per cent has already been deducted at source. This comprises:
- An assumption of £168 million of Efficiency Savings by 2007-08 that was taken off at source.
- An additional £74.5 million where savings should be achieved was identified from Fire Service Reform, Police Services, Supporting People and Invest To Save Projects. Of this, £27 million was also taken off at source.
- Local Government was also expected to deliver £80 million of savings by improved procurement and joining the eProcurement Scotland scheme.
The Improvement Service report suggests that local government efficiency savings for 2005-06 will be in the order of £122 million. This figure, supported by IPF (the management support services company of the Chartered Institute of Public Finance and Accountancy (CIPFA)), is based on detailed work with local authorities.