Whitehall savings target to rise by £10 billion

19 April 2009

20 April 2009 | Martha McKenzie-Minifie

Chancellor Alistair Darling is expected to announce £15 billion of spending cuts in his Budget statement on Wednesday.

The Treasury had already announced it is seeking efficiency savings of £5 billion by 2011.

But Darling is set to extend that target by a further £10 billion, according to The Times and the BBC this morning.

Exactly how the savings are to be squeezed out of Whitehall was unclear but public sector jobs were tipped to be hit as "back office" functions are pared back.

Also unveiled in the Budget will be the recommendations of the Operational Efficiency Programme, a major examination of government spending led by Invensys chairman Martin Jay.

The programme's recommendations are thought to include increasing the percentage of government spend which goes through central purchasing, from 10 per cent to 80 per cent.


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