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Public sector productivity

Source: Other | | 12/03/2024

In a recent announcement by the Treasury, it was announced that plans are afoot to deliver up to £1.8bn of productivity benefits by 2029.

The aim is to improve public sector productivity, including releasing police time for more frontline work. 

The Chancellor is promoting increases in public sector productivity as an alternative to accepting an ever-increasing bill for public services as the government sticks to its plan to move on from the high spending and high tax approach that was necessary to get the UK through the shocks of Covid and Russia’s invasion of Ukraine.

According to the Treasury spokesperson, a new focus is needed on the long-term decisions required to strengthen the economy and give people the opportunity to build a wealthier, more secure life for themselves and their families. 

Covering frontline services, the plan is designed to help public servants get back to doing what is most important: teaching our children, keeping us safe and treating us when we’re sick.

According to the Office for Budget Responsibility, returning to levels of pre-pandemic productivity could save £20 billion a year. This would help manage the size of the state in the long term, whilst maintaining public service quality and delivering savings for taxpayers.

 

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