Written question asked by Baroness Noakes (Conservative), in the House of Lords. It was answered by Lord Myners (Labour) on Wednesday, 6 January 2010.

National Audit Office

Question: To ask Her Majesty's Government further to the remarks by Lord Davies of Oldham on 7 December (Official Report, House of Lords, col. 952) saying that "the National Audit Office … noted that projects across the programme are making significant improvements to the efficiency of public services", how that statement relates to the finding of the National Audit Office in their report The Efficiency Programme: A Second Review of Progress that only 26 per cent of claimed efficiency savings "fairly represent efficiencies made".

Answer: The National Audit Office's review of the SR04 efficiency programme The Efficiency Programme: A Second Review of Progress noted that "projects across the programme are making significant improvements to the efficiency of public services". The review rated 26 per cent of the savings reported as fulfilling NAO criteria. A further £6.7 billion of savings were said to represent efficiencies but were carrying some measurement issues. Additionally the NAO review stated "It is also important to note that problems with measurement mean that it is possible that in some areas of the programme efficiency gains are being understated". In response to the NAO's review departments focused on strengthening the reporting and measurement of savings. HM Treasury produced a final report on the SR04 efficiency programme in November 2008 2004 Spending Review: final report on the efficiency programme. Treasury reported the £26.5 billion of savings that departments had declared against criteria based on those used by the National Audit Office and only reported savings that met these criteria.

Secondary information

Type: Written question
Reference: 673; 716 c107WA
Session: 2009-10
Related items: Smarter Government
Monday, 7 December 2009
Proceeding contributions
House of Lords
Subjects: Cost effectiveness Government departments National Audit Office
Link: View this Written question on www.publications.parliament.uk