Friday 21 November 2008

Annual Efficiency Statements

The Government’s Spending Review 2004 (often referred to as the ‘Gershon report’ after its author Sir Peter Gershon) set out a new requirement for public sector organisations to meet targets for efficiency gains over the three years from 2005/06 to 2007/08.

The target for local government is £6.45 billion by 2007/08. Each local authority is expected to achieve 2.5% per annum efficiency gains compared to their 2004/05 baseline.

Efficiency gains may be achieved from either revenue or capital expenditure but must come about by raising productivity or improving value for money, not through making cuts in services.

The efficiency targets that the Government has calculated for North Wiltshire District Council are:
2005/06 - £380,000
2006/07 - £737,000
2007/08 - £1,105,000

Where improved efficiency means that cash is saved we are able to reinvest this in our services. Improved efficiency may also enable other resources such as staff time to be used more effectively resulting in improvement to the quality or quantity of services.

Local Authorities are required to report the gains that they have made through an Annual Efficiency Statement. The statement is in two parts, for submission in April and June of each year. The first part, called "The Forward Look" is a forward projection of the next year, outlining the strategy for securing efficiency gains, the key actions that will be taken and the expected efficiency gain. The second part, called "The Backward Look" is a retrospective account of the actual efficiency gain achieved in a particular year.

The Annual Efficiency Statements for North Wiltshire District Council can be viewed by downloading the following documents.

Annual Efficiency Statement (backward look) 2004-05 (PDF 41 Kb)