Saving £30 Billion: 9 Simple Steps

Saving £30 Billion: 9 Simple Steps

The Government has the potential to save at least £30 billion a year over the spending review period without affecting frontline services.

In the wake of the coronavirus crisis, there will inevitably be calls for further tax rises to fill the gap in the nation’s finances. However, our new report  outlines nine areas where the Government could make easy savings, or realise extra value, without increasing the burden on ordinary families and small businesses.

The proposals being put forward are:

  • Replacing the pensions triple lock with a double lock, and reducing the Winter Fuel Payment for richer pensioners
  • Forcing Government departments to reduce admin costs at the same rate as the private sector
  • Cutting the number of quangos and combining their back-office functions
  • Streamlining local government and its administrative costs
  • Improving e-procurement and data-sharing, as well as fixing other obvious problems with the procurement system
  • Selling a small proportion of public sector land, and replacing dilapidated schools, hospitals etc
  • Selling and replacing high-value council properties as they become vacant
  • Rolling child benefit into the child tax credit system, and tightening eligibility requirements
  • Cutting or redefining overseas aid in line with reduced global need.

On top of the 5% savings that the Chancellor asked each department to produce at the start of the year, this £30 billion a year should give the Chancellor much-needed headroom to cope with the increased spending and decreased tax revenues that result from the coronavirus lockdown and associated support measures.

Alex Morton - Wednesday, 21st October, 2020