NAO warns of bigger spending cuts

| July 20, 2010
  • ”NAO

    The National Audit Office (NAO) has warned that bigger spending cuts could be on the cards after suggesting the Government is not on target to meet savings.

    It said further tough measures would need to be implemented if it is to be successful in cutting costs and has questioned the £10.8 billion in savings already reported by Government departments.

    According to the NAO, it has assessed £2.8 billion of the £35 billion annual savings which the Treasury was looking to save.

    It established that only 38% of them “represented sustainable savings“.

    Amyas Morse, head of the NAO, said: “Few of the savings… represent major departures from previous practice.

    “The scale of savings needed in the current financial situation means that departments will have to think more radically about how to reduce costs and how to sustain them in the longer term.”

    The Government has responded to the NAO’s assessment and said it will consider the review before providing a response.

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