PN 9: Gershon Welcomes New Chief Executive of the OGC

Sir Peter Gershon has welcomed the appointment of John Oughton as the new Chief Executive of the Office of Government Commerce (OGC) and also welcomed the Chancellor’s Budget proposals on efficiency.

Sir Peter said:

“I very much welcome John Oughton’s appointment as Chief Executive of the OGC. I have worked with him for the last year, and am confident that he will successfully take forward OGC’s challenging programme of modernising procurement in Government. I also support the decision for John to take
forward the work on improving efficiency in Government. I look forward to supporting him as a non-executive member of his efficiency implementation group.

The Chancellor today announced ambitious efficiency targets, involving substantial cost savings in the Revenue departments and the Department for Work and Pensions, a cap or reduction in all departmental administration costs, and an overarching target for efficiency improvements across the public sector of 2.5 per cent a year over the three years to 2007-08.

This phased approach has been informed by the initial stage of the efficiency review, which has identified efficiency gains in a number of areas, including in procurement, the corporate back office, and transactional services, as well as potential benefits from more long term reforms to the way government works – for example to the way in which policy is set, funding provided and quality regulated for front line public service delivery organisations.

I consider that the overall efficiency target of 2.5 per cent a year (which would deliver gains of £20 billion by 2007-08) is challenging but achievable. It is important that the drive for efficiency should not put at risk the delivery of public services and a target in excess of 2.5 per cent is likely to present such
a risk.

The challenge is now for departments to assist the Government to meet the Chancellor’s overarching targets, and to put in place the necessary machinery to implement the resulting efficiency improvements. I look forward to working with John Oughton in helping to ensure this programme is delivered.”