Business not confident of public sector savings

21 April 2008
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22 April 2008 | Jake Kanter

Business leaders are sceptical about the public sector's ability to meet its latest efficiency savings target, according to a survey.

The Confederation of British Industry (CBI) asked its members how successful the government would be in meeting its efficiency target of £30 billion by 2011. Of the 1,452 firms questioned, 26 per cent said the government will be "completely unsuccessful" in reaching the goal. Only 6 per cent believe it will make more savings than in previous years.

In a separate question, 86 per cent felt the government had not paid significant attention to efficiency savings over the past few years.

John Cridland, deputy director general of the CBI, said the government must spend every pound of the taxpayers' money effectively. "It is time for prudence to become an everyday reality in our public services and not just a buzzword," he said.

A spokesman for the Treasury told the efficiency programme has been very successful. He explained: "Strong delivery in this spending period means the government has confidence in meeting the £30 billion target."


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