What a waste

A Whitehall efficiency drive set up to combat waste has spent MORE than it saved. The seven-year programme has backfired by costing taxpayers hundreds of millions of pounds, according to the public spending watchdog. Whitehall departments spent £1.4 bn in an attempt to save £159 million by sharing back-office functions such as personnel and procurement.

Some of the departments failed to monitor how much the changes cost or saved. Sharing back-office functions such as payroll was recommended in a 2004 review into how to slash costs. As a result, eight projects were set up. The NAO examined five of them, and found they cost £500m more than expected – £1.4bn instead of £0.9bn.

At the Department for Transport, the efficiency programme cost £129m more to set up and run than it saved. A Research Councils UK project led to a net cost to the taxpayer of £126m.

Ffeirio Says!Are efficency savings working? Is it a case of ministerial incompetance   canceling out any potential savings gained.

Let`s Debate this issue.

Would you give the government the thumbs up or thumbs down regarding the way they have handled this matter. Or are you not so sure. Maybe your 50/50. Let us know what you think about this issue

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