Whitehall Shortfall

 

 

You’ve got to love this story……for all the wrong reasons.

 

So the story is that the Cabinet Office decided 2½ years ago to farm out Whitehall’s office function to save up to £500 million a year. Ministers transferred back-office functions like human resources, payroll and accounts to private sector companies in a plan which was supposed to “radically improve efficiency across departments”.

 

At the time, Cabinet Minister Francis Maude stated “it will save the taxpayer half a billion pounds a year.” Well that was me sold straight away. £500 million in the public coffers can only be a good thing.

 

Fast forward 2½ years……and there has been an official independent spending review (by the National Audit Office – cardigan wearers which can be trusted) which has concluded that £500 million a year saving has not materialised and it has actually ended up costing £4 million a year more than previously.

 

It has blamed an in-efficient hand over by the Cabinet Office and stated that costs will continue to rise as a result.

 

Which all leaves the Government rather embarrassed with a large helping of egg on face.

 

But we shouldn’t just take this story lightly when we stop and think about it……

 

Firstly, they are messing about with our money and making poor decisions.

 

Secondly, if they can’t implement an efficiency saving how can the UK public have confidence for other public money to be managed carefully?

 

Thirdly, why has nobody been held accountable for this (especially at a time of sweeping austerity measures and public sector cuts)?

 

All in all, a pathetic story which leaves a bitter taste in the mouth.