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- Healey: Economic challenges can be faced with efficiency savings
Healey: Economic challenges can be faced with efficiency savings
| Published | 30 September 2008 |
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Local Government Minister John Healey today praised councils for making more efficiency savings than expected, leaving them well placed to weather the global economic downturn.
He argued that in the current economic climate, obtaining value for money is more important than ever, and councils should build on this success.
Councils can then use the savings they make either to reduce pressure on council tax bills, or to invest in local services.
New figures published today show that over the past three years, councils have saved £3.45billion - the equivalent of £193 off the average Band D council tax bill.
Councils can undertake a range of measures to make efficiency savings, including redesigning services to focus on people's needs, sharing back-office functions, managing their assets better, and streamlining tendering processes to encourage more competitive bids.
Manchester City Council managed to achieve the highest efficiency savings as an equivalent council tax saving - £466 off the average Band D council tax bill.
And 237 councils achieved more than double their savings target, so that in total more than £500m can be counted towards the £4.9bn they are expected to saved over the next three years.
Local Government Minister John Healey said:
"Councils should be praised for making efficiency savings that have exceeded expectations. This is an excellent achievement, and one that will stand them in good stead in this global economic downturn, where obtaining value for money is more important than ever.
"Over the past three years, councils have managed to save the equivalent of £129 off the average household council tax bill. In the current economic climate, with families tightening their belts, this is a real help, and a clear sign that councils are doing their bit.
"Over the next three years, I will be looking to councils to make nearly £5bn efficiency savings. This is in the interest of local authorities, who can use these savings to cut council tax bills or invest in local services. But it is also what the public rightly expects, which is why I want to see efficiency information included with council tax bills, so that householders can see for themselves the savings that are being made.
"Councils are showing they have the flexibility and ability to respond to financial pressures through efficiency and innovation - council taxpayers will be looking to them to build on this during the difficult financial times ahead."
Notes to editors
1. Efficiency statements for each council are published today and can be found at: www.communities.gov.uk/localgovernment/efficiencybetter/deliveringefficiency/aes/backwardlook07-08/.
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