An efficiency target of £6.45bn in efficiency gains has been set for the local government sector (including schools and police). This has to be achieved over the three years to 2007/08. That translates into 7.5% off the 2004/05 baseline - 2.5% year on year.
This target came out of the 'Gershon Review' (Releasing Resources For The Front Line: Independent Review of Public Sector Efficiency - HM Treasury website) published in July 2004. Through the spending review 2004 Gershon's recommendations were incorporated into the government's spending plans to 2007/08.
The aim is to identify resources that can be reinvested in the frontline or used to hold down Council Tax. Each year, therefore, every local authority is expected to achieve 2.5% per annum efficiency gains compared to their 2004/05 baselines.
Local authorities are required to submit their expected efficiency savings for the coming financial year (known as the Forward Look) and to submit their actual efficiency gains for the past financial year (known as the Backward Look). A link to all 2005/06 Forward Looking Efficiency Savings submitted by local authorities can be found on the ODPM website.
The backward look efficiency gains for 2006/2007 have now been submitted. Clicking on the link below will bring up our report that encompasses all three years of the current efficiency savings round and includes our projections for the final year in 2007/08.
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Current Efficiency Changes - 19/07/2007 : 50Kb
Stroud District Council's Annual Efficiency Savings (Gershon) for 2005/06 have now been submitted. There have been some new efficiencies identified, mostly from Housing, that have significantly increased SDC's overall savings.
The report shows SDC's complete Gershon Efficiency program as it currently stands. The 2004/05 and 2005/06 figures are actuals and will be audited later this year. Together these two years are allowed against our target for 2005/06. Our target was to achieve 2.5% in 2005/06 against a base figure but the percentage figure actually gained was 6.34%. The report figures for 2006/07 and 2007/08 are projections. Please note that 2004/05 has been amended from that submitted in the 2004/05 backward look.
The report is available to download below:
Expected efficiency savings for the next financial year:
The Council has identified efficiency savings for 2005/6 under the government's Gershon efficiency initiative, amounting to £677,800. These were submitted to ODPM on Friday, 15 April 2005 and the Annual Efficiency Statement is available to download below:
Actual efficiency gains for the previous financial years:
Efficiency savings for 2004/05 can be offset against the 2.5% savings target for 2005/06 provided they continue to produce savings until 2007/08. Savings of £199,800 have been identified and were submitted on 15 June 2005 to the ODPM in the 2004/05 Backward Looking Statement. The Backward Looking Statement is available to download below: