In the public sector, a profligate spending culture has become pervasive. Civil servants’ wages continue to rise regardless of the performance of departments - Gordon Brown recently announced a 1.5 per cent rise for senior civil servants for 2009-10, while private sector organisations are introducing pay freezes. Departments (encouraged by Ministers) go on financial year-end spending binges to “use up” unspent money in order to secure commensurate funds the following year. Procurement is done by officials lacking the necessary commercial skills and behind closed doors, for example in defence. Many government departments have suffered from “mission creep” as eager civil servants look for new areas to involve themselves in.
Private sector companies such as Toyota are responding to the recession by imposing a four day week on staff to stave off job cuts. Civil servants should be asked to drop extraneous activity and do more for less. £2 billion could be saved in 2010-11 by imposing a four day week across the board with a commensurate 20 per cent wage cut.
Area: Across the board
Total saving: £2 billion
Traffic light status: TBD
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Previous idea for saving: (2) Abolish universal Child Benefit and provide more targeted child welfare payments
