Spending Review – live blog

by Peter Smith on October 20, 2010

Live comments – with a procurement angle – from the Spending Review.  My commentary in italics

Savings from central Government ‘Whitehall Admin’ to be greater than thought.  Admin in all Departments cut by a third at least.  £6 billion a year saving.  How much of that will come from staff versus suppliers? Redundancies inevitable – but much will come from natural wastage. 

Cabinet Office (or some of them) to move into Treasury building.  HMT budget cut by 33%.  CO budget cut by £55m (what % is that? Sounds a lot.)

More us of personal budgets in various areas and encouragement for new suppliers in a number of areas including adult social care and roads maintenance (strange category to mention – thought there were plenty of suppliers in that category?)

MOD – as announced yesterday.

Update  1.00 pm Police; review of terms and conditions.  Spending to fall by 4% a year – should be able to do it without ‘cutting visibility on the streets’.

Home Office and Ministry of Justice  – savings of 6% a year.

HMRC will make savings through a number of areas including ‘better IT contracts’.  But more investment in chasing tax. Also in reducing Benefit fraud.

£7 billion savings to come out of welfare.

Big cuts in council spending – 25% + over four years.

Update 1.20pm

DCMS reducing admin by 41%.  Well done DCMS!  Keeping free entry to museums and galleries.  As a regular user of the National Portrait Gallery coffee shop (known as ‘my London office’ ) I’m pleased…

University funding cut by 7% a year.. pressure on procurement there (as in lots of other places of course)

Total cash to schools goes up in real terms (Osborne has a very irritating little cough…)

That seems to be about it.  Nothing unexpected I can see…

“Average savings in unprotected Departments’ lower than the previous Government proposed; 19.8% against Labour’s 20%.”

That’s a killer political line to end on!

{ 1 comment… read it below or add one }

Philip Hoult October 21, 2010 at 9:53 am

Hi Peter,
What is your take on this bit of the CSR:
“The government will look at setting proportions of appropriate services across the public sector that should be delivered by independent providers, such as the voluntary and community sectors and social and private enterprises. This approach will be explored in adult social care, early years, community health services, pathology services, youth services, court and tribunal services, and early interventions for the neediest families.”
Looks fraught with difficulty to me!
Excellent blog, by the way.
Philip Hoult, editor of Local Government Lawyer

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