The document sets out the Government’s approach to the Spending Review which will be published in the autumn.
The Review will focus on reducing the budget deficit, but it will involve more than the allocation of resources and consider new and radical approaches to public service provision. The aim will be to deliver a step change in public sector productivity and value for money. The drive for efficiency in the public sector will involve driving down the cost of operational delivery as well as simply cutting out waste and lower priorities.
A new Efficiency and Reform Group will support departments to deliver savings in specific areas, including renegotiating contracts, maximising collective buying power and using benchmarking to improve performance.
Central departments, local government and delivery partners will be challenged to consider fundamental changes to the way they provide vital services. This includes looking at how they can promote fairness by better targeting interventions and how they can promote freedom by encouraging a greater range of service providers. It will also seek to exploit the synergies between delivery bodies and promote greater responsibility by shifting power, funding and accountability into the hands of individuals and frontline professionals who are often better placed to allocate limited resources.
The Spending Review Framework is available from HM Treasury.