authorities will be helped to deliver efficiency gains in local
government of at least£6.45bn by 2007/08, set out by the
chancellor in the 2004 spending review.
In a guidance pack sent out today to leaders and chief executives of
all local authorities in England, the government also outlines how
local authorities will measure and report efficiency gains they have
achieved by means of a three-stage self-assessment process. This
method has been determined following consultation with a group of
local authorities and organisations including the Audit Commission,
Local Government Association and INLOGOV of the University of
The pack offers guidance for local authorities on how change agents
such as the regional centres of excellence will support local
authorities in delivering efficiency gains. It also gives examples of
good practice within local government on which local authorities can
build to deliver improved value for money in public services.
Local government minister Nick Raynsford said:
'I am pleased to offer further guidance to all local authorities on
how we can work together to meet the target of efficiency gains in
local government of at least£6.45bn by 2007/8.
'The efficiency agenda is not about cutting services. It is about
improving productivity by getting more from the same resources. This
is a real win:win opportunity for local government as all savings can
be reinvested in improved services or used to reduce council tax.
'A number of local authorities have already demonstrated their scope
for substantial efficiency savings through for example better
procurement and streamlined back offices, and we want to use this
experience, and build on it, to deliver even better, more efficiently
organised, public services. I hope that every authority, change agent
and local government organisation will embrace the opportunities
there are to improve the way local services are delivered.'
Today's guidance builds on a previous information pack published in
November 2004 setting out what the spending review target means for
Further information on the self-assessment process to be used by
local authorities in measuring efficiency gains is set out in a
revised Efficiency Technical Note (ETN) for Local Government, also
published today by the ODPM. This follows an earlier ETN published in
November 2004 which announced the start of a pilot study to test two
different methodologies for reporting efficiency gains.
A copy of today's guidance pack, entitled 'Delivering Efficiency
in Local Services: Detailed guidance for Local Authorities' is
available on the ODPM website.
A copy of the ETN for Local Government also published today is