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Public sector report suggests private sector could provide cost-cutting answers

30 November 2009

The private sector's ability to deliver cost-effective change has been held up as the model that the public sector needs to follow.

While the government is currently laying out its plans to make both central and local government more efficient, newly-leaked documents suggest that the past few years have seen high levels of waste, including in the field of staffing.

The documents, which form part of Labour's own 'Smarter Government' report, conceded that the interim management solutions used within the private sector would have allowed for greater public money savings over the past decade.

The report concluded, according to the Telegraph: "The private sector has consistently been ahead of the public sector on driving down back office costs, innovating to make the most of new technology and using new management practices to drive out efficiency."

It also suggested that a way exists for the government to significantly reduce the number of high-earning executives on the Whitehall payroll while simultaneously boosting efficiency levels within the public sector.

Earlier this month, the Conservatives put forward their plans to cut public sector expenditure by up to £60 billion a year.

Categories: Central Government


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