From the Chairman John Lucey

Smith, David
June 2004
Management Services;Jun2004, Vol. 48 Issue 6, p34
Academic Journal
The article presents a reprint of the article 'A Blast of Efficiency for the Public Sector' by David Smith, which appeared in the April 2004 issue of 'Business Voice.' Public sector efficiency is under the spotlight. Sir Peter Gershon is conducting a detailed review on behalf of the British government and will publish his findings at the end of April. The official figures for 2003 show government spending rose by 10.7 percent in cash terms but produced only a 2.1 percent rise in the volume of public sector output. A leak of Sir Peter Gershon's initial findings points to a recommendation of up to 80,000 civil service job cuts and £ 15 billion savings in the cost of government. It would change the nature of the civil service. In would come the higher-skilled specialist, often paid true market rates, and working across several departments: a modern civil service for a modern economy. The Conservatives have pledged to preserve, and in some cases raise the funding devoted to health and education, but most of their savings from uncovering public sector inefficiency would go directly to the bottom line, helping to achieve Shadow Chancellor Oliver Letwin's targets. Under Kenneth Clarke's chancellorship, the number of civil servants, measured in full-time equivalent jobs, fell by around 100,000 from 577,000 in 1993 before starting to rise again in 1999.


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