COUNCILS ON TRACK TO MEET - AND BEAT- EFFICIENCY TARGETS

The Office of the Deputy Prime Minister today published detailed evidence showing that councils are on course to exceed the efficiency target set by the Government.
Publication of councils' Backward Look Annual Efficiency Statements show actual efficiency gains of more than £750 million in 2004-05.

All the indications are that, combined with what they expect to achieve during this year, councils will exceed the 2005-06 target of £1.0 billion, with total efficiency gains of £1.9 billion.

These figures encompass efficiencies from all areas of local services, excluding schools, fire and police which are subject to separate monitoring arrangements.

Local Government Minister Phil Woolas said:
"Today's more detailed analysis of efficiency gains is further confirmation that councils are meeting the challenge set out by the Chancellor last year, and I would like to thank them for their achievement and for submitting this information to the ODPM.

"The Backward Look statements are significant for the way they highlight actual gains already made last year and so provide a strong foundation for further work towards achieving the overall target of at least £6.45 billion in efficiency gains by 2007-08.

"These efforts will release money and other resources that councils can reinvest in local services or use to hold down Council Tax. Obtaining value "for money is a key part of the effective delivery of services. It is in everyone's interests to work in partnership to promote efficiency, getting the most from available resources to enhance services to local people."

Cllr Sir Jeremy Beecham, Vice-Chair of the Local Government Association and Chair of its Efficiency Task Group, said: "Councils have made an impressive start to achieving the efficiency targets established under the Gershon Review, building on a good track record. The result of the Backward Looks engenders confidence that this year's estimated savings will be met.
"However, the efficiency agenda is not simply about balancing the books. As well as generating more productive time, councils will be reinvesting cashable savings to continue to improve services for local people. Meeting the needs of local people is the primary motivator for all councils and I expect to see ever more collaboration between councils and other parts of the public sector."

Analysis of statements show that councils plan to achieve efficiencies in the following sectors:

AES Headings Gains Reported (£m):