Government Departments: Cost Effectiveness

(asked on 12th September 2024) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Government Finance Function guidance on the Government Efficiency Framework, published in July 2023, whether she is taking steps to ensure consistency in departmental interpretation of (a) technical and (b) allocative efficiencies.


Answered by
Darren Jones Portrait
Darren Jones
Chief Secretary to the Treasury
This question was answered on 11th October 2024

The Government Efficiency Framework, published in July 2023, sets out what an efficiency is and how it should be categorised, including the difference between technical and allocative efficiencies.

It states that an efficiency should not mean deferring costs to future years or be a reduction in costs with the intention to achieve less. HM Treasury has been clear that these definitions apply to all government departments.

Accounting Officers are expected to oversee the application of the definitions and monitoring of efficiencies. This includes having an appropriate internal assurance process.

As per the government response to the recommendations from the PAC report entitled “Cabinet Office functional savings”, HM Treasury will set out further detail on its approach to providing assurances on the use of GEF definitions in due course.

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