Tuesday, September 18, 2007

More doubts on efficiencies - MOD and Gershon

There is now more evidence to suggest that much of the Gershon "efficiencies" being claimed by the public sector are not entirely robust - as I have suggested here before.

Public Finance reports that the Public Accounts Committee's recent report on the MoD’s major project spending examined claimed savings of £781m on 20 of the ministry's largest projects. But the Committee found that only £242m of this represented genuine savings.

I fear that many of the savings in local government and social housing are (and will be) disguised cost-cutting and/or plain creative accounting.

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