Government departments have achieved immediate cost-cutting targets, but questions remain over their ability to meet more challenging, long-term savings, the National Audit Office (NAO) has reported.
According to an analysis published on 2 February, central government cut real-terms spending by 2.3% or £7.9bn in 2010/11 – with £1.5bn reductions in back-office operations almost matching a £1.6bn fall in capital spending. Work undertaken by the Cabinet Office's efficiency and reform group contributed almost half that figure, some £3.75bn.
